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.