Are you looking to buy insurance for your used car, but aren’t sure which policy to choose?
Choosing the right car insurance can be incredibly difficult, especially with all of the options out there. How do you know what’s right for you and your vehicle?
Check out this guide to discover the top tips for choosing insurance for used cars.
1. Figure Out How Much Coverage You Need
When choosing insurance for your used car, the first thing you want to do is to figure out how much coverage you need in your state.
Car insurance requirements vary from state to state, so it’s important to do some time researching your state’s requirements. To figure out what the rules are in your state, you just need to conduct a quick Google search.
Once you know what the minimum requirements are, you’ll be able to figure out what else you need. If you have a lot of assets, you’re going to want to get enough liability protection to cover them.
While it’ll vary depending on your financial situation, it’s generally recommended that your liability limits are:
- $50,000 for bodily injury liability for one person who is injured in an accident
- $100,000 for all people that are injured in an accident
- $25,000 for property damage liability
In insurance shorthand, this is usually expressed as 50/100/25. However, you should let your own financial situation be your guide. If you don’t have any assets that an attorney could come after, then don’t waste your money on unnecessary coverage.
2. Consider Your Driving Habits
It’s also important to consider your driving habits when buying insurance for a used car.
If you have a history of speeding, crumpled fenders, or long commutes down winding roads, then you’ll want to consider getting more complete coverage. If you’re accident-prone, then it’s a good idea to get collision coverage, as this will cover you in the event that you damage your car in an accident.
You may also want to consider purchasing comprehensive insurance, as this will cover your car if it’s damaged in something that isn’t an accident, such as a fire, storm, or theft.
3. Review Your Current Insurance Policy
It’s also a good idea to review your current insurance policy before you buy new insurance.
The first thing you want to figure out is how long your current policy will cover your newly purchased car. Typically, the same coverage will extend to the new car.
However, how long this coverage lasts for can vary greatly. Sometimes, it can last for a couple of weeks, while other times it will only last for 24 hours. It’s important to check before you buy instead of just assuming that your coverage will extend.
Also, if you’re not replacing your car, then you may not have any coverage at all.
You also want to take a look at your current insurance policy to see what’s working and what isn’t. Jot down your current coverage as well as how much you’re paying for it.
Because you’ll get quotes in both formats, you should write down both the monthly and yearly costs of your insurance. This way, it’ll be easier to figure out what number you need to beat.
4. Check Your Driving Record
In addition to checking your current insurance policy, it’s also a good idea to check your driving record.
You should check how many tickets you have and how long they’ve been on your record. If you can’t remember how long you’ve had a ticket for, then you can check with your state’s department of motor vehicles (aka, the DMV).
If a ticket you received or points you earned are about to disappear, then it’s worth waiting until that happens before you start shopping for quotes. This is because the disappearance of points can help improve your driving record and therefore lead to lower insurance rates.
5. Gather Quotes
Once you have all of the above information figured out, it’s time to start gathering some quotes.
When shopping for quotes, you want to have your current insurance policy on hand, as well as your driver’s license and your vehicle registration card. The best and easiest way to shop for car insurance quotes is online.
All you need to do is type in your information on a site for car insurance rates, and you’ll be given a list of companies and quotes. However, it’s important to keep in mind that not all companies take part in these one-stop-shopping sites. Therefore, you still want to do your due diligence by asking friends, family members, and co-workers for car insurance recommendations.
If you find a company that may be a winner, you can go directly to their website for more information or call them at a toll-free number.
6. Gather Information About Each Company
Once you have a list of companies offering good quotes, it’s time to gather some extra information about each car insurance company. Here’s what you’ll want to jot down about each company:
- Their monthly and annual rates for different types of insurance coverage
- The company’s telephone number so you can call them if there are any questions you have that they don’t answer online
- The company’s payment policy- ie, When are payments due? What payment plans are available? What happens if you’re late with a payment?
- Discounts available- Many companies offer discounts for good driving records, certain occupations, or cars with extra security
Once you’ve gathered all of this information, you can assess which car insurance company is right for you based on price and coverage.
Choosing Insurance: Are You Ready to Choose?
Now that you’ve read this guide on choosing insurance, it’s time to decide what’s right for you and your vehicle. If you’re still on the hunt for the perfect used vehicle, then you’ve come to the right place.
Check out our inventory today to find the perfect used car for your needs.