Used Car Insurance vs. New Car Insurance

January 27, 2012

If buying a used car, you will need to get used car insurance. A used car has certain advantages over that of it's new counterpart in that the insurance will be less costly. The value of a car will undoubtedly play a part.


Clearly, the value of a new car is far higher than a used car, and that will definitely be reflected in the amount you pay to protect a vehicle of substantially higher value than a cheaper used car. If you choose to protect against theft, a used vehicle is considerably cheaper to replace, and therefore less of a concern and risk. The same applies to getting into an accident.

Used and older cars are cheaper to repair, and therefore getting damaged in a collision (provided you have coverage), you will pay less deductible and less premium. Regardless of value, or inflicting injury on a third party, you are liable for damage caused. In this case you will need the minimum state requirement for liability damage.


Finding new car insurance can be cheaper, because newer cars have more safety features factored into the manufacture. You will probably have driver and passenger air bags in your newer vehicle, but maybe not a passenger air bag in an older car. Seat belts did not used to be standard on older vehicles, but in the last twenty years or so, they have had to be included owing to changes in laws.

A newer vehicle will have seats belt for each legal seat in it, whereas an older vehicle may not carry the required amount of seat belts. If you buy an older car, you would be well advised to make sure it is fitted with the most up-to-date safety devices that come equipped in all newer cars. This will lower your premium. Low risk car insurance on a newer vehicle can be lowered because of safety features. It will all even out one way or another. The newer vehicle is worth more, but has safety features; and an older vehicle has less value, but could be considered more of a safety hazard.