THURSDAY, AUGUST 5, 2021
Pre-owned cars, no matter how old, can be reliable, trusted vehicles for years. However, used cars come with risks of financial losses when you hit the road. Accidents can still happen, and you wouldn’t want to face high repair bills or a totaled car.
It is important to make sure that your used car has appropriate levels of insurance. Many people are unsure how their auto insurance rates will change when they buy a used car. Will it be higher or lower than insurance on a new car?
There’s no set answer for what the price will be for an auto policy on a used car. There are many different factors in determining car insurance rates. While the fact that the car is a used car may be a factor, there are other guidelines to determine rates. Keep these guidelines in mind when insuring your pre-owned vehicle.
Where You Live is a Factor
Remember that many states require drivers to carry certain levels of insurance. Your auto insurance rate will likely be impacted by these laws.
But, another factor with pre-owned cars is that they are at a high risk for theft. Used cars are usually stolen at much higher rates than new cars. Flatly, developments in GPS tracking and anti-theft have made newer cars harder to steal.
If you live in an area that has a high car theft rate, you may pay more for an auto insurance rate on a used car.
Age is a Factor
Age is also an important factor in determining car insurance rates. As a car ages, its value depreciates. So, the less a car is worth, the lower your insurance rate will likely be. Used cars are older, so they will likely have lower rates.
But remember, a car’s quality can impact auto insurance rates. If your used car has low mileage and gentle use, then it may be in better condition than a newer car that has heavy use. The rate may fluctuate based on that factor.
If a used car has no previous insurance claims, your risk is lower than on a newer car that has insurance risks. Your insurance rate may be lower on the older car than on the newer car.
We are proud to offer a variety of auto insurance options for new and used vehicles. If you have questions about insurance rates on your used car, call us at 866-950-6844.
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It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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