Many motorists are now opting to purchase used cars instead of new models. As well as paying cheaper prices than those you’d find on most dealership forecourts, road users believe that a second-hand vehicle will ultimately save them money on their auto insurance quotes but this is not always the case.
Many used cars continue to depreciate in value very quickly and this makes them cheaper to insure. If an old vehicle with a low market value is declared a total loss after a road traffic accident, the potential settlement isn’t likely to be as high when compared to other models and this leads to cheap auto insurance quotes.
However, some vehicles hold their value better and this means an accident will most likely involve repairs being carried out. In most cases, this type of car will be amongst the more prestigious brands available and repairs usually include high labor rates and expensive component parts. This automatically makes premiums higher because of the risk taken on by the auto insurance companies.
If you have a particular used car in mind, it’s advisable to carry out some research on auto insurance rates before you decided to make a purchase. At Promiga, consumers are invited to apply for an unlimited number of auto insurance quotes without any obligation to make a subsequent purchase. All of our online auto insurance quotes are supplied free of charge and we never ask for sensitive personal information that can be sold on to mailing list companies at a later date.