Buying auto insurance for your used car can be easy to do. Yet, before you make your purchase, there are a few key things you need to know about the types of coverage available and the amount of protection you need. It’s important to buy enough protection to fully protect your investment. Here are some tips.
#1: Determine The Value
A good place to start is with the value of the car. The amount of insurance you need depends on this.
If the car was a total loss today, could you pay for the replacement out of pocket? Are you okay with receiving nothing if you have to pay for your accident damage? If so, you may feel comfortable only with a minimal amount of comprehensive or collision coverage.
Do you have a loan? If so, you likely need to carry comprehensive coverage, collision insurance, as well as liability coverage.
The amount of protection should match the value of your car if you want to receive full compensation for your losses.
#2: How Much Do You Drive?
The more you drive, the higher the risks for accidents happening. With a used car, which may have a significant number of miles on it, breakdowns may also be a concern. If you drive a significant amount daily to and from work, for example, make sure you have ample liability insurance.
#3: Compare the Policy Types You Are Purchasing
Auto insurance for a used car needs to fit your specific needs, but the more protection you have, the less likely you are to pay out of pocket. Some options include:
Liability insurance to minimize the damage you cause to another car or person in an accident. The more you carry, the more protection you can receive
Comprehensive car insurance to cover damage from things like storms and theft
Collision insurance to cover damage to your car when you hit another object
Uninsured/underinsured coverage in case the responsible party for damage to your car does not have enough liability protection
#4: Think About Your Deductible
With a used car, your deductible needs to be a value that is within reach of your budget. For example, if an incident occurred today, how much could you comfortably pay out to cover your deductible? Reduce this number to ensure it’s affordable. However, keep in mind that by increasing your deductible, you might save on your premium. Therefore, carry as much as you can afford.
#5: The Cost
Your premium is a big factor in choosing car insurance for your used vehicle. It needs to fit your budget. Letting your Garrison Agency agent compare quotes or apply discounts may help achieve this. Work closely with your agent to get a plan that best meets your needs.