Used Car Insurance

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.