Used Car Insurance Tips to Save You Money

When buying a previously owned vehicle, used car insurance premiums will add significantly to the cost of using your car. Therefore, you should always try to save as much money as you can on used auto insurance. Fortunately, there are ways that you can do just that, and we have put together a series of helpful tips to help you save money on insuring your used car.

Shop Around

Insurance premiums will vary from insurer to insurer, so it always pays to compare as many rates as possible. Therefore, always get at least 3 price quotes from 3 different insurance companies. You can call the companies directly or search for information on the Internet regarding car insurance companies you may be interested in. You may also want to inquire about used car dealer insurance if you choose to buy your car from a used car dealer.

Comparing Insurance Costs before You Buy

You should actually start considering insurance costs on a vehicle before you buy it. Most car insurance premiums are based on the cost of the vehicle and the cost to repair it as well as its overall safety record and the likelihood that it may be stolen. When shopping for a vehicle, you may want to consider vehicles that use daytime running lights or have anti-theft devices already installed. These types of devices can help you save money on your insurance premiums as well. You may also want to a used car insurance quote before choosing a vehicle as well.

Consider a Higher Deductible

A deductible is the amount that you are required to pay before your insurance policy coverage begins. If you request a higher deductible, your insurance company has somewhat smaller exposure to risk, and will reward you with lower insurance premiums. For example, by increasing your deductible from $200 to $500, you may be able to reduce collision and comprehensive insurance coverage by as much as 15% to 30%. Having a deductible of $1000 or more may serve you 40% over a standard $100 deductible policy.

Lower Coverage for Older Cars

If you have a used car that is rather old, you may want to consider dropping collision and comprehensive coverage altogether. This type of insurance coverage is always much more expensive than general liability coverage and may be costing you more in yearly insurance premiums than the car is actually worth. For example, if you're buying used car insurance premiums that amount to about $1500 a year for a car that is actually only worth $1500, then the money would probably better be best be spent in other areas and not for car insurance.

Get Multiple Policies

Many insurance companies will give you a substantial discount if you have 2 or more different types of insurance policies with them; therefore, if possible always try to use the same insurance company to ensure both your car and your home. By having 2 or more policies, you will usually be able to enjoy discounts of 10% to 20%.

Maintain Good Credit

By always maintaining a solid credit rating, you can always cut your insurance costs. More and more insurers are using credit scores to price insurance policies on automobiles. Therefore, if you have a good credit standing, then you are much more likely to receive better premium rates than people with poor or bad credit.

Low Mileage Discounts

Some insurance companies offer discounts to drivers who only drive on a very limited basis. In addition, low mileage discounts can also be applied to vehicles that are used in carpools. Always ask your insurance company about this type of discount, if you do not drive your car very often.

Car Repair Insurance

Another option that you may want to consider when buying insurance for your used car is car repair insurance. Car repair insurance can help you cover any costs associated with repairing your car. Since you never know how well a used car was maintained before you bought it, this can often be a wise choice.
Also, most insurance companies will offer discounts to policyholders who have not had any accidents or driving violations for a certain number of years. You also may be able to get a discount if you take a defensive driving course. Additionally, if you have a young driver on your policy who is a student, have them take a driver's education course and make sure they could get good grades. All of these things will help you get lower insurance premiums.