Buyer’s Guide To Used Car Insurance
Reader’s Question:
Do I have to purchase full car insurance coverage for a used vehicle that I’m planning to get here in Alabama?
Oliver
Huntsville, AL
Not necessarily, car insurance for used vehicles would usually cost much lower due to the fact that the value of the vehicle itself has depreciated. This means that you can maintain adequate comprehensive and collision coverage for much less than it would normally cost you on an expensive vehicle. If the actual cash value of your vehicle there in Alabama is low enough, you may even find it more cost effective to have relatively minor damages fixed yourself, and drop comprehensive and collision coverage all together. You can even opt to increase your policy’s deductible and take advantage of lower premiums for doing so.
You should still maintain the required amounts of liability insurance coverage, as mandated by the financial responsibility laws of your state. No matter how old or used your vehicle is, it’s still a moving object that still has the potential to inflict damage to property and injuries to people, which you may be sued for, so dropping liability is something you do not want to do.
With used cars, you actually get the flexibility of balancing risk versus costs. Here are some other helpful tips to insuring a used vehicle:
1.Do you have good medical insurance coverage? If so, then you may choose to drop Personal Injury Protection since your medical insurance will pay for treating injuries caused in a car accident.
2.Driving a used car won’t disqualify you from discounts that you may be eligible for, so don’t forget to ask.
3.Always shop around. This website is a great way to start your search or affordable used car insurance.