Used cars and insurance

car inusranceBuying a used car is something most of us have done or will do at some point in our life. Whether it’s our first car in high school or a replacement for an old one that bit the dust, used cars come in handy. Of course, as with owning any car having the right insurance is just as important as finding the right car

Used Cars

 There are a few things that one has to consider when buying a used car. When buying from a dealer, generally you can expect a better quality and more confidence in your purchase. This isn’t to say that buying a car from an owner directly isn’t an option but a lot more homework is required. For example, a history of any major repairs, accident reports, the last time the vehicle received a scheduled checkup, etc are good information regardless of who you are buying the car from. However, a dealership will have better access to this information than a direct owner might.

Car insurance

Not all car insurance is created equally. Having car insurance for a newer car vs a used car are two different policies. For new cars most dealerships offer a manufactures warranty on the vehicle up to a set window of time and/or miles driven. This helps keep the insurance rates down as any major issue most of it could very well fall under this warranty meaning the insurance company does not have to run the risk of having to pay. For a used car, a warranty isn’t always a given from the dealership which is why the insurance will generally be far greater for a used car than a new car. Additionally you might need more protection with a used car than a new one. Such as window replacement, towing coverage, along with other possible amenities. All of this increases your overall insurance for the vehicle.

Some great links to read more about car insurance are:

Bilforsikring (In Danish) – You can use Google Translate. It works fine

Wikipedia – Vehicle Insurance

Confused.com – find the perfect car insurance

Gov.uk – Information on car insurance from the UK government

Conclusion

While buying a used car will typically be far cheaper than buying new, there are some pitfalls to beware of. Additionally knowing your state and federal laws regarding the sale of used cars can help you avoid potential scams or false sales. In this day and age owning a car is practically a necessity especially for certain parts of the country. For this reason having the proper insurance for your car will protect you and your family as well as add some extra piece of mind with owning and operating your car.