Whether you recently obtained your driver’s license and are shopping for your first car, or have been driving for years and want to upgrade, buying a used vehicle can be a smart way to save money. Often, people have a number of questions about if buying a used car can affect the cost of their car insurance. Below, we have answered some of the most common questions about buying car insurance for a used vehicle so that you have the facts that you need.
What type of car insurance do you need for a used vehicle?
Generally, you will need the same type of insurance coverage for a used car as you would for a new car. You may decide to forgo some of the optional coverages (such as comprehensive or collision) on a used vehicle, depending on its age and condition. However, it is important to keep in mind that if you do not purchase collision or comprehensive coverage that you will need to be able to afford the cost of repairing or replacing your vehicle if it is damaged.
If you have financed or leased a new vehicle, you are usually required to purchase collision and comprehensive as part of your financing agreement.
Will my insurance company cover a used car if it has modifications?
Before you purchase a used vehicle, it is important to ask if any modifications have been made. Under some circumstances, certain types of modifications may not be covered by auto insurance companies. Reach out to an experienced insurance professional at Bow Valley Insurance to find out how any modifications could affect your insurance.
Does insurance cost less if you buy a used car?
Many people assume that if they buy a used car that they will pay less for insurance, but this is not always the case. The cost of your insurance policy depends on a number of factors which can include your driving record, where you live, how long your commute to work is as well as what type of car you own. The actual age of your vehicle is only a small factor in the overall equation.
Can ‘replacement cost’ coverage be purchased for a used vehicle?
Coverage and availability can vary by insurer for replacement cost coverage. Most insurance companies will only offer a depreciation waiver, which is similar to replacement cost coverage, if you’re the original owner and the vehicle was purchased new.
If you are considering purchasing a used vehicle, contact us at Bow Valley Insurance today. We can do the rate shopping for you and help you compare policy prices to ensure that you get the proper coverage you need to protect yourself and passengers.