Cheaper Car Insurance

Reader’s Question:

I am a new owner to a used car from my grandfather. This is my first time to have a car under my name which totally thrills me that I forgot to get an insurance first. What coverage should I consider including in my used car insurance policy?

Keith

Atlanta GA

Used car is still a car so you still need a car insurance for you to legally drive it. State law’s minimum requirement for insurance coverage is the same for used car and brand new car. This means you need to include bodily injury liability and property damage liability in your used car insurance policy. If you reside in the state that require Physical Injury Protection (PIP), then you should also add this to your policy.

Regarding including comprehensive and collision coverage in your used car insurance policy, it is something you should think about. If your used car’s value is no longer that high, then maybe you can skip comprehensive and collision coverage, as the repair might cost more than the car’s value. Which, in this case, it is more practical to buy another used car or a new car. Without comprehensive and collision coverage, you can get a cheaper premium.

But if your used car is a classic or a collector’s item, then it might be a good choice to have comprehensive and collision coverage in your used car insurance policy. But note that, this will increase your car insurance rate.

Since this is your first time to buy a car insurance, you might seek the help of people who have experience buying it. You can ask a friend who has a car to walk you through the process. Or, you can ask the advice of your parents.

You can also ask referrals for a good car insurance broker. The broker can provide you with information for different insurance companies. He can also provide you with insurance quotes from various insurance providers which you can choose from. Some would say, getting car insurance from broker is expensive but then value of help you get and convenience is just worth the extra money you pay.