How Do I Get Car Insurance on a Used Car?
Obtaining insurance for a used car is the same process as getting insurance for a new car. However, your insurance needs may vary based on how old your car is. Your insurance agent or company will be able to help you get started. Make sure your car is insured before you start driving. Insurance protects you in case your car is in an accident or stolen. Your medical expenses may also be covered up to a certain amount. Depending on your policy, other drivers may be covered as well.
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Instructions
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Contact your insurance company and let the representative know you would like to get insurance for your car. Provide the representative with the required information about yourself, including name, address, date of birth, social security number and place of employment.
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Give the representative all information about your automobile including year, make and model. She will also need the vehicle identification number (VIN), which is located on your title, registration or on your dashboard on the driver's side. Let her know who will be driving the car and where will it be stored.
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Provide information about the lien holder for the car. If your car is being financed the insurance company will need to know the lender. A car that is paid in full will not have a lien holder. Many lenders will require you to purchase collision insurance if you owe money on your car.
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Decide if you want collision coverage. Without a lien holder you may decide to skip the collision insurance based on the age of your car. Collision coverage is very expensive. This portion of the insurance pays if your car hits another car or object such as a house or building. However, according to Charter Insurance, if another car runs into you, that driver's insurance would cover you. Your car is covered up to its cash value.
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Review the bodily injury liability with the insurance representative. If you cause bodily injury or a death to someone else, this portion of the policy will protect you as well from any lawsuits filed.
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Go over the conditions for the property damage liability. You are covered if your car damages another individual's car or their property such as tools, equipment, or their house.
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Take a look at your insurance policy. If you agree to all the terms and conditions of your insurance plan, the representative will issue a policy, The standard coverage period is one year.
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Tips & Warnings
The insurance company will need your driver's license so that a copy of your driving record can be ordered from the department of motor vehicles.
You can lower your insurance premiums by increasing your deductible. A deductible is an out of pocket expense you must pay if you file a claim for an accident or other damage to your car. After you pay the deductible the insurance company will pay the rest. If you file a claim for $1,000 of damages due to an accident and your deductible is $200, the insurance company will pay $800 when your $200 deductible is paid.
Deductibles are typically $250, 500 or $1,000. A higher deductible means you are taking on more risk so your monthly premiums are lower.
If you have a substantial number of moving violations, your insurance premiums will be higher.
Some insurance companies will look at your credit history before approving you. Bad credit could mean your premiums will be higher.
