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Save Money On Car Insurance with a used car

Here’s a great way to save money on insurance when buying a car. Consider buying a used car. Insurance is always higher on a new car than on a comparable used car. It is common knowledge, cars (and trucks, too) lose more than 20% of their value in the first year. Some vehicles lose as much as 40%. So if you buy used, you can save money on the purchase price and the insurance.

Note: I got a tip from a car insurance agent. Consider buying a used car for a young driver, and then only providing liability. The cost of the older car and the liability insurance may be much cheaper than trying to insure a young driver on a new car. The plan has some positives and negatives, but is one tip to provide affordable car insurance for young drivers!

The insurance is cheaper because it costs the insurance company less money to insure $30,000 car than a $15,000 car. If a used car is stolen, the insurance company will not have to spend as much to replace it as they would if the car was new. Additionally, auto insurance companies can charge you a lower rate for both collision and comprehensive coverage on a used car. All this adds up to a lower monthly premium for you.

SAVE TIME COMPARING AUTO INSURANCE WITH ONLINE QUOTE FORMS!

Some people would rather jump off a cliff rather than buy a used car. If you do your homework (I know you thought after you left school homework wouldn’t be an issue) a used car can be a great money-saver. On-line sites can give you lists of cars that: get the best gas mileage, have the lowest maintenance cost, are cheapest to repair and have the highest retained value. You can also look up the history of a used car online. Finally, always, always get the car checked out by a mechanic you trust. If you research all these aspects you will have taken a good portion of the risk out of a buying a used car.

To really save money on the insurance cost of used car, experts recommend when you think about insurance – think like an insurance company. Theft is a big issue with insurance companies. The National Insurance Crime Bureau (NICB®); list the 1991 Honda Accord, the 1995 Honda Civic and the 1989 Toyota Camry as some of the most frequently stolen cars in 2005. You would think no one would be interested in stealing these boring, everyday cars but they are. So you can see it pays to do your homework. Also insurance companies don’t like cars that are accident prone or cars that are expensive to repair.

Also check out a car’s model history. Some car insurance companies will raise their rates on a particular model because there are an unusually high number of claims made. Usually, insurers view imports less favorably than domestic models. Imported parts generally cost more than domestic and may be difficult to find. Therefore insurance companies charge higher rates for imported cars.

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