Why Buy Used Car Insurance
Reader’s Question:
I just bought a used car that’s really low priced. Do I need to have used car insurance?
Tom
Colorado Springs, CO
No matter how much your car costs, whether it is a very expensive brand new sedan, or a really cheap old clunker from the used car garage, you will need to provide at least the minimum levels of liability insurance as it is required in your state. This is because the insurance coverage is one way of showing to the state that you can very well pay for the damages you are most likely to inflict from driving your car on the streets. Not having one would cost you your driving privileges. You will also end up depleting your savings from paying state-imposed fines for driving around uninsured. Worse, your car might just be seized by the government to make sure that it is not loose on the streets without insurance.
Since you have a used car, obtaining used car insurance would be your best option, so you do not have to pay enormous amounts on coverage. Most owners of used cars choose the higher deductibles on their Comprehensive Insurance to considerably decrease their premiums. And this is just a good move as there is no point in insuring your used car for such high limits since it only costs really cheap on the used car lot. Additionally, it would hurt to pay expensive rates on Comprehensive Insurance and just end up accepting a really small settlement if it gets to be declared a total loss after an accident.
auto insurance coverage, comprehensive insurance, liability insurance, used car, used car insurance