I have heard a lot of people wonder if they could save some money on their policies if they purchased an older car that had another owner first. This question is not that easy to answer though. While the age of the vehicle may affect premiums, other things must also be considered.
A used luxury vehicle that still costs many tens of thousands of dollars may well cost more to insure than a sedate and common sedan. You have to consider vehicles that would be the same, or similar, makes and models. If so, you probably can lower your premiums quite a bit by purchasing an older car.
Insurance companies look at many different factors when they set premiums. Auto safety features, anti-theft devices, repair costs, and the car’s value will matter. In some cases, a new car may already have anti-theft or safety features that will earn discounts. In other cases, the older car will cost less because it has a lower value.
But there are some ways to make sure an older car or truck will help you save money on premiums. For one thing, you can pass on the full coverage. Just buy liability insurance. If you do not owe any money on the loan, you can make this choice.
Of course, you will be taking a bigger risk by declining full coverage. It will be cheaper, but it will mean that you will have more risk if your car is damaged in some way. Be sure to learn about this decision so you can decide if it is a financially sound one for you.
One other way to save money on an older car, with a paid off loan, is by skipping GAP insurance. This protection only covers the ‘gap’ between your loan balance and the book vaue of the car. Since there is no loan balance, you will not need to purchase this policy at all!
We want you to find cheaper car insurance quotes with a great company. Study some more ways to save money on auto insurance.
Tags: auto insurance, automotive, autos, car insurance, finance, insurance quotes, money, used cars