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Considerations When Purchasing Used Car Insurance

by Amy Walters

After or upon people buy used cars, the drivers are not quite ready to drive away from the lot just yet. Insurance is a crucial part of owning a vehicle, and it must be obtained before those long treks to work or road trips across the country can begin. Often, when purchasing a brand new vehicle, all of the work is accomplished at the dealership. What should buyers know when adding a used car to their name?

Before Leaving the Lot
Some used car lots might allow you to just drive away before even being insured, and this situation really should not occur. Furthermore, a private seller might not care if the car isn’t insured upon the sale either as long as it is out of his or her name. Do not purchase that car until insurance matters are taken care of. Whip out your cell phone or ask the dealership to use the phone there. Generally, insurance companies are able to work with you over the phone to switch your insurance from one car to another. They could fax over a temporary insurance card. If that is not an option, discuss other possibilities with the company. You may simply have to come back the next day to truly take ownership of the vehicle.

Insurance Details
When you buy used cars, or new cars, for that matter, some information must be considered upon the purchase of insurance. Who is going to be the primary person listed on the insurance? Depending upon the age, and even gender, of the individual, the price of insurance could rise. For example, young male drivers are generally the most expensive to insure. Furthermore, a person who has a bad driving record is going to be more difficult to ensure at an affordable rate than an individual with a clean slate behind the wheel.

The exact age of the car can have a significant influence as well. For example, not all used cars are extremely old. A car that is one or two years old could be classified as “used” if the original owner decided that he or she did not want it. In many cases, newer cars cost more money to insure because you also have to add collision onto the package. The insurance company will also need to run a report on the car’s vehicle identification number (VIN) to determine if it has been in any accidents that could deem it unsafe.

Finding the Right Price
Sometimes, it seems easier to just stay with the insurance company that you have been using for years. Certainly, it many cases, this decision will make sense. However, you should call at least a couple of different companies to find out the quote that they will give you for the vehicle. Why pay a couple of hundred dollars per month when you could only pay around one hundred? Be sure to check into the various options and payment plans that you could have. You also want to read the fine print and ask the important questions. For example, what happens if you decide to switch insurance companies a couple of months in? Will you still be responsible for paying the full six month term that many companies provide?

Another way to lower the price is to have the same car insurance for all of the members of your household. Often, companies will provide a discount when this is the case. Furthermore, you should also look into having your home insurance from the same company. Just imagine all of the money that you could save with these discounts!

Insuring a used car is, in many ways, the same as insuring a brand new vehicle. However, you generally have to do more of the legwork yourself, and you also will find that the price is generally less than for a brand new vehicle. Still though, it’s best to shop around and compare prices.

This post provided by the guys at Are You Selling, these guys buy used cars, so if you’re trying to sell your car, they’re the ones to talk to.

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