Do You Need Used Car Insurance?

It is required by law to carry auto insurance on any type of automobile whether it be new or used. Some people think some used cars are so old and cheap that they do not need to get it replaced if it's in an accident. But it's important to understand that auto insurance is not only to protect replacing the damaged car. It's also required to help cover health costs from injuries and to ensure you can fix the other person's car if the accident is deemed your fault.

The minimum amount of coverage a driver must carry varies from state to state and is known as the "Financial Responsibility Limit" for your particular state. This isn't necessarily the best way to gauge how much coverage you need, but it's helpful to know what the minimum amount is in case that's all you can afford. All states require that you have a certain level of liability insurance to pay for bodily injuries to yourself and other victims of the accident.

The good news is that used car insurance is often less expensive than car insurance for a newer car. Used cars are generally less expensive to repair and replace so this can translate to lower car insurance quotes from various insurers. If the car is too old though it can have the opposite effect if the car is deemed unsafe. As always, shop around to ensure you are getting the best deal on your used car insurance policy.