How to Choose Car Insurance For Used Cars
Choosing to buy a used car involves making choices about fuel, age, mileage, and choose car insurance for used cars.
As far as used car insurance is concerned, it is important to study the different offers and find out which coverage is best suited to cover your used car.
Indeed, auto insurance premiums are partially indexed by the type of vehicle and its value, which implies a different cost for a used car than for a new vehicle, mainly due to the age of the car.
What is the best car insurance for a used car?
Unlike a new vehicle, a used car must benefit from coverage that takes into account different factors, such as its age on the road, for example.
If a new car must be protected for its high (often purchase) value, a used vehicle must therefore be covered with wear and tear have taken into account. This is how insurers plan to take into consideration the rate of obsolescence linked to the car and allow the subscription to car insurance to be adapted accordingly.
In this case, it is a question of preferring intermediate car insurance for a used car between 5 and 8 years old, or even third-party car insurance if it exceeds 10 years of seniority. All-risks insurance does not appear to be necessary insofar as the repairs incurred in the event of a claim do not exceed a staggering amount and can thus be covered by a lower level of protection.
Insurance companies automatically estimate the amount of damage due to an accident based on the cost of the vehicle to estimate the amount of damage related to the accident. This independent evaluation already considers the wear and tear of the car by year of registration, for example. The main criteria used for the argus are as follows:
- Date of first circulation (seniority)
- Mileage
- Type of fuel used
- Type of vehicle (sedan or city car, for example)
- The quality of historical maintenance
Finally, access to the extension of the replacement value warranty is not recommended here, unlike car insurance for a new car. Taking out this extended warranty is therefore a certain "luxury" that is not very necessary for a second-hand car, which only very rarely matches the budget of drivers.
You will have to cancel, transfer, or change your car insurance in the event of the transfer of your used vehicle (whether you sell it or give it away for free).
The best way to save money and know what level of car insurance to get for your used vehicle is to compare prices and offers before signing up for anything. There are several ways to quickly and easily compare the offers on the market.
You can use a car insurance comparison website. In addition, this 100% anonymous and completely free car comparison site is very easy to use. Thus, you will be able to choose the best car insurance for your used car based on the criteria that suit you.
How much does used car insurance cost?
Because used car insurance is a priori at a lower level than new car insurance, the price will be proportionally reduced. The main criterion of demarcation is the appraisal of the vehicle's value and the possible repairs, taking into account obsolescence.
Insurers are also based on the number of additional guarantees taken out or the type of parking provided for the car. Thus, the price of the guarantee against theft and vandalism will be cheaper if the car park is private or if you have access to a closed personal garage, and higher if it is a public car park open to all (a place in the street, for example). It turns out very logically that the risks in terms of theft and vandalism are not the same when the vehicle is protected during the night.
The terms and conditions relating to the overall cost of the car insurance premium for a used car must nevertheless hold the attention of the insured, in order to understand the stakes of a claim:
- Auto insurance deductibles will be lower due to the age of the used vehicle, and insurers will be able to cover a larger part of the repairs than for a new car.
- The compensation ceilings may vary but will a priori be lower than for a new car.
- The waiting periods remain freely fixed by the insurance companies and can take a certain time if more "urgent" files have to be processed.
- Guarantee exclusions will almost always be more numerous in the basic cover taken out (intermediate insurance and even more so third-party insurance being less efficient than all-risk insurance), and their release will always entail an additional cost.
How can you reduce the price of your used car insurance?
Legislation has evolved considerably in the direction of drivers in terms of auto insurance. Thus, it has become common and easy to change contracts or insurers in order to reduce one's budget and/or be better covered by switching to a competing insurer. Indeed, as an insured, you have the possibility of terminating your car insurance at different times during the exercise of your contract.
As part of the insurance of a used car, it may be useful to terminate your car insurance contract if your vehicle is 4 or 5 years old and you wish to upgrade to lower insurance, for example.
Be aware that your new insurer will take care of all the administrative formalities for this change of insurance, and that the latter cannot incur any costs.
Any vehicle, even when stationary, must be covered by car insurance. So, if you want to change insurance, make sure that the old and the new coverage follow one another or even overlap to prevent your car from ever being uninsured.
When should you insure a used car?
You must be insured for the return trip, you could be penalized in the event of an inspection. In theory, the seller is insured until midnight on the day of the sale. However, you cannot be certain that he has indeed taken out an auto insurance contract despite the legal insurance obligation. In addition, you do not know what insurance formula is used or how you will be taken care of until you reach your home.
Also, it may be preferable to insure your used car in advance, as long as you are able to give your insurer all the information necessary to take out a contract.
What documents are required for used car insurance?
To take out insurance for your used car, the insurer will ask you for a certain number of documents in order to define the amount of the insurance premium:
- a copy of your driver's license: this document is used to define the number of years the license has been held. Remember that a young driver is penalized by an additional premium during the first 3 years;
- a copy of your identity card;
- Information Statement: This is a document provided by the former insurer that highlights the bonus-malus coefficient and responsible claims in recent years. This allows you to define the level of risk and, therefore, the amount of the insurance premium for your used car;
- The registration certificate, allows you to know the characteristics of the car and its value, which will once again impact the cost of car insurance.
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