Auto Insurance for Used Cars
Let's say that the car you're driving didn't exactly zoom out of the assembly line in the past few months. It's getting up there in age (and mileage) and, you have to admit, it's seen better days. The body has a couple of dinks and scratches; you're noticing a few small bits of rust that you need to take care of; and the car just doesn't have the acceleration it did before. What you have in front of you is a used car, and you want to find the most appropriate insurance package for your weathered vehicle.
For starters, there is some flexibility in both the types and amounts of coverage for you to choose. Having no insurance is not an option—there are insurance laws on the books in practically every state that require drivers to carry some sort of auto insurance. Every state requires drivers to carry liability insurance (which provides financial protection from liability claims against you), though the minimum levels vary on a state by state basis. However, in most states the minimum liability level isn't nearly enough to cover you if you were to get into a serious accident, so you may find yourself wanting to cover your liability level above the minimum requirement for where you live.
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Auto Insurance Options to Consider for Used Cars
Other coverage, such as medical payment and uninsured/underinsured motorist coverage, are required in some states but not in others. Choose your state from this list to find out what coverage is required.
Collision and comprehensive insurance is optional in almost every case. As this policy covers physical damage to your car as a result of an accident (collision), or damage resulting from other causes (theft, fire, vandalism, etc.), it's a good idea to consider the value of your used car while determining your need for this type of coverage. If your car is valued at less than $1000, say, it may not be worth it to pay the premiums you would pay for collision insurance, since the most you could recoup is the value of your car minus damages (i.e., after depreciation), even if the car is totaled. Make sure you know the blue-book value of your used car before making any collision and comprehensive insurance coverage decisions.
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**Auto Insurance Finder is not an insurance broker or carrier. Content on this site is for comparison and informational purposes only. The products and services listed on this site may not be available in all states.
Last Updated: February 14, 2008
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