Comparing New Car Insurance with Used Car Insurance

If you are considering the purchase of a motor vehicle, it may be advisable to factor in all of the combined costs of actually getting a vehicle on the road. If you are on a restricted budget, the chances are that you’ll only be looking to buy a used vehicle. However, this can have advantages when it comes to the cost of your car insurance.

Understandably, most new vehicles will carry a higher market value than a used equivalent unless the latter is a sought-after high performance vehicle or expensive sports model. In turn, the cost of car insurance for a used vehicle will usually be much cheaper than coverage for new models. Insuring a used vehicle for accident damage will accrue a lower premium for an older car and if you are considering anti-theft policies, these will also be noticeably lower in price. Costs can also be driven down by factoring in a higher deductible figure. You will still be required to carry the legal minimum level of coverage for your state.

On occasion, some new car insurance policies can actually be reduced because of a number of other factors. Many new vehicles carry a host of extra features that make them less susceptible to damage or theft. Items such as fitted seat belts, anti-theft devices and immobilizers are now fitted as standard on most showroom vehicles. When insurance companies are underwriting a policy application, the vehicle will fall into a lower rating category and this will have a direct influence on the final premium.

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