Auto Insurance for Used Cars

Many drivers purchase used cars in order to save their money on the initial costs of a down payment as well as the high monthly payments associated with a new car. These car owners realize that their purchase creates some complications when it comes to changing auto insurance. The budget-mind person will likely complement their purchase of a used car with the legal minimums for bodily injury and property damage liability to save on their annual premium.

Minimum coverage is ideal for drivers who do not use their vehicle very much and live in areas with low traffic incidents. One second of inattentive driving by you or another driver can lead to a serious accident. This unfortunate occurrence is made worse in the proceeding months due to high medical costs, repair bills and litigation that comes from possessing insufficient insurance. Used car owners should consider optional benefits with their insurance policy to protect their finances following an accident. The money saved by purchasing a used car can be reinvested into a good car insurance policy.

One way that used car owners can save money on their insurance while getting better coverage is to play around with comprehensive and collision coverage levels. You can increase your collision deductible to decrease your overall premium. It is critical that you keep your comprehensive deductible low in order to protect your vehicle from natural occurrences outside of your control. These two deductibles will likely balance out at a certain level so you should keep this in mind as you work with an insurance agent.

You need to think about the value of your used car before purchasing a new policy. Vehicles over $2,000 in value need to be covered by a full range of benefits in your policy. You can cut back on your premium by sticking with your health insurance instead of medical payments. You need to increase your bodily injury and property damage liability above the legal limit to provide adequate protection for assets like your used car. Owners who have vehicles under $2,000 need to concern themselves more with bodily injury and collision coverage to gain sufficient financial protection against litigation. Used car owners with the absolute minimum amount of insurance will find that law enforcement officials, lawyers and hospitals will have no mercy when dealing with legally liable drivers.