Reader’s Question:
Is it practical to get used car lot insurance for my car dealer business? I am operating a small used car dealership business in our neighborhood, which, thankfully, earns a little more than the break-even.
Carl
Salem OR
From the business owners’ point of view, it might not be that attractive to get a used car lot insurance because it means additional item to their expense list. But the security and peace of mind you will get, knowing that, whatever happen to the used cars you are selling, you have an insurance company who will answer for the loss is something more valuable than money you spend on the insurance.
From the your customers’ point of view, having a used car lot insurance will give them an impression that you are one car dealer who cares a lot about his cars and products. Knowing that the used cars on display are being insured means the cars are being valued by the seller. As such, the buyer will feel confident that the car they are getting are well taken cared of. This is a big plus point, not only to your sales but also to your reputation. You will be regarded by your community as someone who values the cars he is selling. This will surely drive more customers to your shop.
Used car lot insurance is a bit tricky to deal with. If you are not much familiar with this insurance, then it is best that you consult an insurance broker that specializes in this kind. Brokers have connections to different insurance providers so they can offer you different insurance products to choose from.
Following are basic factors that can affect your insurance rate:
If the above factors are present in your car lot, the more you need to get insurance to protect your products.
Reader’s Question:
I used to work as car salesperson in one of the big automobile companies in Houston. Since my company is greatly affected by the recent oil crisis, I decided to leave. But my passion for cars is pulling me, and so I plan to become a used car dealer. Aside from getting a used car dealer insurance, can you please help me on how to get started with this kind of small business?
Josh
Houston Texas
People who go after their passion will surely succeed. It will also make you a happier person. Having the passion and happy disposition, you will surely be a hit car dealer. But to be a more effective car dealer, you need to get a vehicle dealer license so all your business transactions are legal, and to protect yourself from being accused of operating illegally.
The first step in getting the license is to attend the dealer education program. The aim of this program is to educate the future car dealers about laws related to buying and selling cars. Since you already have experience in selling cars, this might come easy to you. After the program, you need to take a written examination given by your state’s motor vehicle department.
After getting your car dealer license, you need to think about your business plan. Are you going to be sole person running the business, get a partner, or if you’re going to hire employees. Then, another important factor to consider is your place of operation. You also have to factor in about getting a used car dealer insurance as to protect not only your business, but your passion.
To acquire the business license for your used car dealer business, you need to visit your state’s department of motor vehicles for proper guidance. The average processing time for used car dealer business license application is 120 days. So in between waiting for the application process to finish, you should also think what are your business strategies. You can also plan on what insurances you should get to help you have a smooth sailing business operation. One insurance you should consider getting is the used car dealer insurance to protect you from unnecessary expenses incurred from damages to your cars and trucks.
Regarding your used car dealer insurance, you can get the help of a broker to find the best rate for you. It’s a good move to get a broker so you can leave all the different insurance needs on him, while you attend to more valuable things to do like developing your business strategy. With all the efforts you invest on putting up the business, it is just right that you provide it with proper insurance.
July 24 2009 by author in Uncategorized |
Reader’s Question:
I will buy a used car. If I drive it back home, will my car insurance cover it? Do I have to tell the car insurance agent? How soon should I inform them?
Bianca
Chicago IL
It is best to get car insurance set up on the vehicle you are planning to purchase before you take ownership of it. If you don’t have car insurance policy then you wouldnt have coverage on that car. If you were purchasing the vehicle with a loan it is possible that the lien would require you to have auto insurance set up before you take the car.
If you have a vehicle and auto insurance then it is possible that you may be afforded insurance. Keep in mind though that every state has different laws governing this as well as the car insurance companies’ guidelines differ as well.
Typically auto insurance providers will transfer coverage of current car to the “new” vehicle for up anywhere from a few day up to thirty days. Again, the amount of time will still depend on the car insurance carrier.
Once common mistake is that when someone has coverage only on a car and then they buy a vehicle that needs full coverage (leased car) and they are not covered. Keep in mind that the coverage transferred is typically limited to the amount of coverage on the old car.
If you do not let the car insurer know or not within the days permits by the law for a certain amount of time then the new vehicle would not be covered.
June 19 2009 by author in Uncategorized |
Reader’s Question:
I am going to purchase a used vehicle. Do I need to buy the car first before buying used cars insurance?
Damon
Houston TX
You definitely need to buy used cars insurance if the used car will be your first vehicle. In many states, you will need to do this before taking ownership of the car. If you are just replacing your car and you already have car insurance active, your existing car insurance policy may cover your used car for a couple of days. To be sure about this you may contact your car insurance company before buying auto insurance.
Before buying either a new or used vehicle, please do call your insurance provider to inform them regarding the vehicle that you would like to buy. They can provide you the quote for the vehicle so you will have an idea how how much it would cost adding an automobile to your policy. This can help you budget your finances as well. Your insurance provider can then inform you should call and add the automobile so it will be covered.
April 16 2009 by author in Uncategorized |
Reader’s Question:
Why do I need to purchase car insurance for used car?
Kenn
Alexandria, VA
If you have an old car, you are probably thinking of not getting it insured. In the case of traffic accident or a crash, having the car fixed is not expensive. However, there are certain things that you need to understand about car insurance. Every state has enacted a law that requires drivers to carry car insurance. There are some states that require drivers to present a proof of financial responsibility before they can register the car. In this case, you don’t need to think about of not getting your car insured. You need to get a used car insurance because it is what the law requires. State also mandates a minimum level of car insurance that will cover you against claims in the case of traffic accidents that results in damages to property or bodily injuries to other people in case you are at fault. With car auto insurance, the loss from the accident will compensate the victim.
So what does used car insurance serves you? Used car insurance, or car insurance in general, provides financial protection from claims or liability in the case of traffic accidents or crash. If you are the person at-fault, used car insurance can come in handy. You’ll probably claim that you are a good driver so traffic accidents may not be something that can happen to you. You are probably a good driver but reality tells us that traffic accident happens where good drivers can also be technically at-fault for some reason. In case you’re not at-fault, the other driver should cover the loss from the accidents from his/her car insurance.
There are other coverage that the state requires from motorist. There are medical payments coverage and uninsured/underinsured motorist coverage. Collision and comprehensive insurance is an option in other states. You can consult with your used car insurance agent for other information.
Get car insurance for used car now.
February 13 2009 by author in Uncategorized |
Reader’s Question:
Can I save more on car insurance cost if I decide to buy a used car?
Laura
Austin, TX
Many people think that buying a used car can drastically lower ones insurance rate. Most car auction dealers will tell you this, but in reality you’ll be shaving just a few bucks off of your insurance quote. Although it seems that used car insurance can be seen as a small advantage over insuring a new car, there are still other ways you can do to really bring down your insurance cost.
Consider getting a higher deductible, this will result on a lower insurance premium. It is much more convenient for used car owners to pay a small amount of monthly insurance expense since you only own a used car.
The only thing that is the same when it comes to obtaining cheap car insurance is your driving history. Driving history is a very important factor whether you own a new or used car. Make sure you maintain a good driving record to ensure an inexpensive insurance cost.
Another way to lower a used car insurance cost is to have your own closed garage. Car insurance company recommends that an owner must have a private garage even though you only own a used car. They will offer discount if they know that your vehicle is safely and securely parked.
Used car insurance can be pricey or inexpensive just like owning a new vehicle. The only thing that I can be sure of is you don’t need to have an expensive comprehensive coverage since it isn’t worth for a used car.
Reader’s Question:
Is used car insurance expensive? I am planning to buy a used car as my first car until I have enough money to buy a brand-new one.
Elliot
Lawrence, KS
Elliot, it is surprisingly not expensive to insure a used car. Car insurance is your protection against any untoward event that could happen to your car. Before the government allows you behind the wheel, they make you pay some form of liability in case you cause an accident while driving the car, or if the car is part of an accident regardless of who is driving.
Used car insurance is much like your regular personal insurance. You get assessed in exactly the same things as when you buy a brand new car. But the difference between them is that, more often than not, a used car is a lot cheaper than a new one, so the cost of maintaining the car when it is involved in an accident would not be much.
I would advise, though, that you make sure the car is safe. Safety features could still earn you points even with a used car. If you get a used car for the time being until you could afford a new one, I suggest that you get the basic policy and save on other insurance coverage like collision and comprehensive coverage. That way, you do not pay additional amount on your premium since the arrangement is temporary, and if the car gets damaged for whatever reason, it might be way cheaper to replace the whole car rather than repair it.
January 31 2009 by author in Uncategorized |
Reader’s Question:
Will insurance companies provide higher or lower used car insurance quotes for liability and collision/comprehensive coverages?
Dennis
Phoenix AZ
A person will insure a used car because of the same guidelines that govern those who want their new vehicles insured. The owner wants to protect himself from the possible liabilities associated with owning an automobile. The insurance can protect him and his passengers from traffic accidents, theft, and other losses. The same information will be taken into account by insurers when assessing a used car. That means, used car insurance quotes may or may not be similar to a new model.
Looking at it on the liability aspect, a used car’s danger to people and their properties does not diminish because of being previously owned by another person. It still can inflict to people, their properties, and structures the same degree of damage as a new car. In this regard, used car insurance quotes for liability coverage won’t be changed by an automobile’s age. However, used car insurance quotes for comprehensive/collision coverage can actually be lower compared to a newer model. The reason for this is simple. A used car has a lower value compared to a new one. So, when it gets stolen or damaged, the liability associated with it is lower. In other words, the insurance company’s potential loss should a used car become stolen or damaged is lower compared to a new model.
January 31 2009 by author in Uncategorized |
Reader’s Question:
Will used car insurance quotes be lower compared to new car insurance quotes?
Wilhelm
Philadelphia PA
We may be tempted to think that used car insurance quotes should be lower compared to new car insurance quotes. However, when computing for insurance premiums, companies base their computations on many factors. Two things could happen when comparing two cars of the same model but different manufacturing years. Used car insurance quotes can come out more expensive compared to a newer car of the same model for several reasons. If the used car was made before 1997, it won’t have the safety features common in newer models. Insurance companies want cars to have those add-ons to keep the driver and passengers safe and less exposed to danger during accidents. Based on that alone, the newer model will be charged less. However, if the used car comes with safety features similar to the new car, their points on that aspect will be equal.
Now, there are old models that car manufacturers still offer to the market. These were designed somewhere in the 1980s when safety gears were not yet mandated. A person on a tight budget could opt to buy one of those types. In essence, it’s still a new car. Another person buys a used car that is a model 2001 complete with safety features. The used car insurance quotes in this instance will definitely be lower compared to the new car.
January 30 2009 by author in Uncategorized |
Reader’s Question:
Where can I obtain used car insurance quotes?
Chris
Austin TX
Like a typical automobile, used car insurance quotes can be had from local providers, insurance brokers, or online calculators. The same basic guidelines are followed. Just because your vehicle is a used car does not mean the required information changes. Insurance premium computation for cars generally need the same facts, like the car’s model, type and make, your personal driving and traffic violations and accidents, and the type of coverage you wanted. Local providers can give you used car insurance quotes by calling their hotlines, talking with their agents or visiting their offices. There are also insurance brokers who can provide you with multiple quotes from various companies. This is faster and more efficient because you get many quotes instead of just one. Just make sure that the broker is affiliated with many insurers.
Finally, you can obtain used car insurance quotes from the Internet. Insurance companies and brokers have maintained online sites that let you obtain quotes by entering information and completing a few steps. There are online sites that takes a while to complete the questionnaires since they require comprehensive information. There are others that are not as thorough and will only need car-related information and your driving and traffic violations and accidents for the past two or three years.