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.