All-Inclusive About Used Car Insurance You Need To Know

Anything expensive is worth insuring because you would not love to spend a bank to purchase the stuff again. We made a guide on what to know before buying a used car

However, some insurance doesn’t cover the total price of the commodity/structure insured, but you’ll definitely save a lot of money when things go south.

That said, even a used car is worthy of insurance, and you should look into that before or immediately after buying the used car.

Considering used car insurance is a smart thing to do, more so, in some developed cities, you must ensure your car before riding it on the streets, irrespective of whether it is a new car or an old/used one.

Asides’ being a law in some contemporary cities, insurance is inevitable if you do not wish to lose it all when hazard looms and take over your expensive possession(s).

How about What To Do After Buying A Used Car we have an article for it.

But, insuring a used car is most times costlier than insuring a new car, why? Obviously, you’ll buy a used car at a cheaper rate; why then can’t the insurance be more economical? We are going to look into that, and you’ll be clarified.

Why do you need insurance for a used car?

Whatever you see/have as a reason for purchasing an insurance policy for your new car, that’s also the reason to get used car insurance for that second-hand car in your garage; besides, the “used car” is also a “new car” to you because you just owned it.

Obviously, no one can correctly predict what’s going to happen in the next minute; thus, we are somehow obliged always to do whatever that seems like it would secure our future in case of unprecedented mayhem.

More so, running a car to and fro the roads is naturally risky, you may be very careful with your driving, but the next driver coming behind maybe a lackadaisical one.

In fact, the need to buy insurance for a car (whether new or old) cannot be basically overemphasized; it is a necessity!!!

Nevertheless, if you’re living in the United States, car insurance is a must for all cars. It doesn’t matter if you own numerous cars, you must insure them individually.

But considering the benefits you get as a result of insuring a car, one should be forced to do that; the cost of repairing a car (especially if involved in an accident) can go up very high, higher than what you may pay for car insurance.

Furthermore, car Insurance policies come along with fringe benefits; this varies by the insurance company and the type of policy you’re buying.

Hopefully, we’ve made a couple of points that validate the need to purchase used car insurance.

The next big question should be how to purchase used car insurance and when to do that; before or after buying the car?

Note: you can always rely on a used car insurance calculator to calculate the cost of insuring the second-hand car you just bought.

There are a bunch of sites that allow you to calculate the cost of insuring a used car.

When to buy a used car insurance

There’s apparently no way you are going to buy an insurance policy for a car you haven’t owned (officially).

This sentence already explains that insurance is feasible after you have formally owned the car; that is after you have paid and signed the required documents with the seller or dealer.

Nevertheless, you need to calculate the cost of insuring the car as part of the prior things to do when buying a used car.

Also, you should know this – Section 157 of the Motor Vehicle Act indicates that a car owner MUST buy insurance coverage within the first 2 weeks (14 days) of purchasing the car.

If the used car had been under insurance, the insurance policy transfer is expected to be done with the specified 14-day grace period.

At the end of the 14-day period, if the insurance policy is not signed or transferred to the new owner – any damage or mayhem caused by the car, he, the current owner, is solely responsible.

Also, with all that has been discussed in this sub-heading, hopefully, you now understand when to buy used car insurance.

The process of insuring a used car

Quite a lot of things are to be considered when looking to insure a car. First things first, you must be sure to be the rightful owner of the car.

That is to say, make sure that you have all the car documents, as well as ensure that your name has replaced that of the previous owner(s) of the car in all the legal papers. This is vital and necessary.

Since it is a used car, obviously, there has been an insurance policy used by the previous owner.

This insurance policy can be transferred to you (the new buyer/owner).  

However, when an insurance policy is transferred, the new owner may not be able to amend the car insurance type and features, except for if the policy has expired prior to the selling of the car.

Nevertheless, some insurers may offer on-demand endorsements.

Another important thing to do when pushing for used car insurance is to validate the “claim history.”

Although the dealer or seller may have given you the claim history report/paper, it is advisable to contact the insurance company, provide them with the policy number, and then seek to know the used car’s claim history.

This is simply to validate what you’ve already been told; however, if you’re priory not told everything about the used car’s insurance policy, then this step is very important.

The cost of used car insurance

The truth about this is quite simple; different cars may require different coverage levels, and thus, the cost of insurance would also differ.

There is no perfect fee for car insurance; the cost you get depends on the features, add-ons, and all that is entailed in your policy.

However, it has been said by many that used cars attract higher insurance costs than new cars – this may just be a stereotyped belief, but there’s a sense of truth in it.

An expert said, “There isn’t a consistent relationship between a car’s age and how much it costs to insure.”

It is also important to note that there are different types of policies, but mainly “full coverage policies and minimum coverage policies.”

As you may guess, a full coverage policy costs more than a minimum coverage policy.

More so, you should understand that most insurance companies won’t present their policies as “Full coverage policy” and “Minimum policies.”

Different companies offer different policies; however, there is always a policy meant to cover everything (including comprehensive and collision coverage).

There are other “flexible” policies that can actually be personalized.

Comprehensive (full coverage) used car insurance policies

Typically, this policy includes comprehensive and collision coverage, meaning that the insurer will take care of that accidental damages incurred on the insured “used” car.

Car repairs can be very expensive; hence, most people prefer to go with this policy and save themselves from spending much when the vehicle gets severely injured from an accident.

However, these full coverage policies aren’t signed at a static price. Different companies would request different prices for this policy.

Also, the price for this policy may vary from car models and quite other possible factors.

Sometimes, you can get a full coverage policy for a used car at a cheaper rate than a new car; other times, the reverse may be the case.

Furthermore, as a car grows older (annually), the insurance cost tends to go lower. Yeah, surveys have shown that some car insurance companies reduce the cost of insuring old cars as the cars keep aging.

The studies also showed that this is because as a car gets older, its components become inexpensive to buy and easy to find in the market.

But this is not always the case; there are some particular cars from top brands that remain expensive to insure even when you’re buying an old model.

Thus, it is safe to say that the actual cost of a full insurance coverage policy for a used car is not certain; it varies based on different factors.

With this information, you’re expected to research and compare quotes from different insurance companies and then go for the cheaper ones, or the more reliable company.

But if you don’t want a comprehensive policy, which is obviously more expensive than other types of policies, then you can consider the flexible options provided by different insurers.

Other types of insurance policies

These policies differ from insurers, and the price is also not certain. There are also Classic and Specialty policies for premium cars that are not literally the regular cars people own.

Such vehicles that require Classic or Specialty policies are sports cars, antique cars, and custom-built cars.

But, these uncommon car insurance policies for such a car can be very expensive, and they come along with strict rules.

Again, whatever insurance policy you want to purchase for your used or new car, ensure to conduct personal research, request quotes from different insurers as possible, and compare the prices alongside the features, add-ons, and other entailments in the policies.

Your research should decide the best insurance company you should go with. However, the following experts’ recommendations should not be neglected.

Where and how to buy a used car insurance

There are quite many companies that offer used car insurance plans; you just have to pick the company that’s offering the best features (you need) in its policies.

The process of buying used car insurance works similar to buying a used car online.

You have to visit the insurer’s website, check out their offerings, and request a quote.

Try this for a couple more insurance company websites and start your comparison on which you should choose.

It is not advisable to always settle with the company or a policy plan that is way cheaper than the others.

What should determine your final choice includes but not limited to the features, the company’s profile, and price.

In some states, you need to get insured before registering your car with the legal bodies.

What more?

There are many ways to check the average rate of insuring your used car – Car Insurance offers a handy tool that can help this purpose.

If your car was designed in 2011 or subsequent years, you’re advised to go for full coverage; hence, using the Car Insurance tool, you’ll get results for comprehensive and collision plus liability rates are shown for these years.

Some people go ahead to check the possible cost of used car insurance before going to buy this car.

Yes, this is possible; you can visit the car dealership, get the vehicle identification number, and then use the VIN to check the possible insurance cost.

This will help you in planning your budget for owning the used car. But getting the VIN of a car you have not paid for may be difficult, but that would help out if you could.

It is important to note that an insurer may not refund your money if you already bought an insurance policy only to end up not purchasing the expectant car.

Also, driving an uninsured car can be very risky because you may be caught by the designated authorities, which may place you on a fine, not minding that you bought the car newly.

Nevertheless, there’s a grace period, usually 7 – 30 days from the day you bought the car.

Choosing between GAP insurance and a full coverage is one of the most confusing parts of buying used car insurance. However, if you could, full coverage is always the better option.

NOT all older cars are cheaper to insure, don’t go with such mentality; there are lots of things that will affect the price.

In all, insurance is needed for a used/old car, and you need to research different insurers to pick out the best deal.