Many people don't want to make the investment in a new car, because of the high value and rapid depreciation it might experience early on. By contrast, a used car might be a better bet. Used cars can last a long time if properly vetted and maintained.
No matter whether you buy a new car or a used one in Houston, you must insure it. Still, insuring a used car requires additional attention to details. Let's take a closer look at these.
The Perks Of Insuring A Used Car
Used cars are also tried and tested. Therefore, there's less uncertainty when it comes to protecting the vehicle.
- Because the car has been used, it doesn't have as much value attached as a new car. Therefore, the insurer must assume a lower cost risk by insuring it. They also likely won't have to pay much in the event a loss occurs. Therefore, your rates might be lower than they would on a new car.
- Additionally, if the car doesn't have a history of accidents or damage, then the insurer can better gauge that it is a reliable vehicle. The matrixes that insurers might look at can see the vehicle's reliability over time. This might impact your overall premiums.
Furthermore, because the vehicle has a lower value attached to it, you might not have to buy the highest possible amounts of insurance. Therefore, you'll often lower your cost burden just because you don't have to carry as much protection.
Setting Up Your Policy
In Houston (which is Texas' largest city), auto insurance rates tend to run higher because of the high driving risks in the area. The city's average rates, according to ValuePenguin, cost about $2,800 per year, which is higher than the statewide average. When looking to insure your used car, keep these tips in mind:
- Texas law requires all drivers to carry auto liability insurance. This coverage will pay other drivers in the event you are at-fault for a wreck. Always raise your liability limits past the minimum required limits. Therefore, you'll have more coverage available. Let your Cheapest Auto Insurance agent help you choose the right limits.
- You can still buy physical damage insurance for the car. In many cases, policies will pay you only the car's depreciated cash value in the event you total it. However, when it comes to a used car, this might be all the coverage you need.
- All policies will have deductibles attached, which you must pay towards a claim cost. Therefore, choose one that you can afford to pay. If the vehicle's damage is less than the deductible, then your insurer might not pay.
- Ask your Cheapest Auto Insurance agent if you can qualify for discounts on your policy. Accident-free, student, good driver and automatic discounts might apply.
Look over the value of your policy, and compare it to the value of your car. Your Cheapest Auto Insurance agent can make recommendations on ways that you change your coverage and save on your rates.
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