Insurance prices for new versus used vehicles | OK Carz

Two people inspecting the damage on their vehicles after a collision

Does having a used car affect insurance costs? 

Buying a car is a process that doesn’t stop when you drive your recently-purchased vehicle off of the car lot. There are other things that you have to take into account when looking for a vehicle, whether you end up buying a new or used model. Whether you finance your vehicle or pay up front, there are still plenty of costs associated with owning a vehicle. One of these continuing costs is paying for insurance on your vehicle.  

While buying a used vehicle often leads to paying less for the vehicle, you might end up with a higher insurance rate. One of the biggest reasons for this is that the older your vehicle is, it is more likely to be stolen. Despite the fact that newer vehicles might be more valuable, they’re harder to steal with all the safety features, which often includes some sort of GPS tracking. Newer vehicles also often feature advanced safety features that can help drivers avoid potential accidents. All in all, a lot of factors go into how your recently-purchased vehicle is insured.  

[Related: Car Insurance Basics]

How to choose your insurance 

Young man filling out paperwork across a desk from an older man

Another important aspect to consider is what type of vehicle you have. Even when you buy used, some models have fairly negative connotations, which could possibly lead to risky driving, potentially causing a collision. However, if you’re a cautious driver without accidents on your driving record, you’ll likely end up paying less for your insurance. While the vehicle your drive plays a small role, you can lower your insurance by opting out of insurance aspects that aren’t strictly necessary on a used vehicle, like collision and comprehensive insurance. Be sure to compare insurance rates from a variety of providers to ensure that you’ll be getting the best coverage for your money.  

Learn more about what you need to do when buying car insurance and find other tips and tricks that will help you purchase a used vehicle on the OkCarz blog. Drivers can also find information on applying for financing and view the OkCarz inventory on the website.

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