Used Cars May Mean Cheaper Car Insurance
Are Used Cars Cheaper To Insure?
This is a very natural question. Yet, it is still a little like asking if chocolate ice cream is better than vanilla! Is cake better than pie?
The only real answer would, be that it just depends on a lot of different factors. A used custom sports car which retails new for $50,000 or more will probably be more expensive to insure than a new hybrid.
But, comparing apples to apples, you can probably save some money on your insurance premiums by buying a pre-owned vehicle.
Paid Off Autos Can Save Insurance Money
Can you pay cash for the car without needing a loan? If so, you may want to just keep your minimum required liability insurance and drop full coverage. That will be cheaper for sure! Your risk will be having to pay for damages to your auto if you are judged to be at fault in an accident.
If you do not need GAP insurance to cover the difference between the book value of your vehicle and the loan balance, you can also save some more money.
So if you cannot totally pay cash for the whole amount of your used vehicle, it will help if you can put down enough money so your car is worth more than the loan balance. This may seem obvious, but plenty of people are upside down on their vehicle loans today.
Other Factors Insurers Look At To Set Rates
Insurers also base the premium upon how cheaply a vehicle can be repaired and how common of a theft target a particular vehicle may be. A common used car model, with lots of available replacement parts can be a good choice. Choosing a vehicle that is not a common theft target can also be a good idea Another good idea may be investing in an anti-theft device if is not already installed. Many newer vehicles come with these, but a used car may lack one. Insurers will usually offer a discount for anti-theft devices, and it will make your own vehicle more secure!
How to Compare Used vs. New Insurance Prices
If you are car shopping, it is simple enough to figure out what your premiums will be. You can use an internet auto insurance quote form to compare rates from the comfort of your home or office computer. Since your final premiums will depend upon many factors, including the type and age of car, age of driver, zip code, and the driver’s claims history, it is the only way to be sure.
Try this >>> Online Car Insurance Comparisons
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This is really something to consider for a younger or high risk driver! Trust me…. I know.