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  #1  
Unread 10-09-2007, 06:38 AM
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Used Car Insurance

Hai,

I am Sam.

Insuring a used car follows the same basic guidelines as insuring a new one, with the owner's goal being to protect himself from liability should something happen to his vehicle, its occupants, or other motorists. The key difference is that if a used car is damaged or stolen and written off as a total loss, the insurer's potential loss is lower than that with a new model, so the company can charge less for the comprehensive and collision coverage, therefore lowering the premium. On the other hand, a used car can inflict just as much damage on other cars, people, structures, etc., as a new one, so liability rates aren't affected by a car's age.

Because used cars are less valuable, buyers may want to rethink some of their insurance strategies. For example, it may not be necessary to maintain high coverage for comprehensive and collision insurance, when ample coverage with lower payouts is available for a smaller premium.

"The major thing to consider is how much physical damage coverage you need on a used car," says Dick Luedke, spokesman for State Farm. "A lot of people with older cars choose not to have a lot of collision coverage."

Likewise, while a low deductible may make sense on an expensive brand-new car, used-car buyers may choose to save money by raising their deductible. Because the vehicle may already have some cosmetic wear and tear, an owner might choose to skip repairing minor collision damage, or simply go out of pocket for smaller repairs, rather than paying the higher premiums a lower deductible commands. Keep in mind, however, that the higher the deductible, the more you'll have to pay out of your own pocket in the event of a claim.

"When you're buying comprehensive and collision coverage, one of the questions you ask is, 'How much should the deductible be?' " Luedke says. "You should ask yourself, 'How much can I afford tomorrow without upsetting my financial comfort zone?' If you can pay $1,000, why pay extra for a lower deductible?"

This is especially typical among used cars, he added. "Higher deductibles are probably more common for an older vehicle for the same reasons as a lower coverage limit." But all insurance is a matter of balancing cost versus risk, and for used cars, many consumers lean toward saving money today at the risk of having to spend more in the event of a claim.

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Unread 05-29-2008, 06:40 AM
arnold111 arnold111 is offline
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Nice thread! I really like your provided information. It's really helpful for me.
Thanks a lot!
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Unread 07-11-2008, 03:21 AM
David Johnson David Johnson is offline
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Great thread,

Thanks a ton for providing the useful information and hope to read more from you.

Car insurance is one of the necessary evils when buying a car. You can’t really drive a car on the open road without it, but then again most people hate paying for car insurance. The fact of the matter is that it’s a requirement if you want to be able to drive the car; you have to get car insurance.

Used cars are great, for one thing when trying to buy one they are considerably inexpensive to purchase. For another thing, they are also somewhat inexpensive to insure. This is one of the biggest reasons why parents want their children to have a used car, it’s because the insurance costs are cheaper. And there really is no reason for a teenager to have a brand new car as well. And a lot of teenagers are looking into brand new sporty cars, while parents want to give them an older used car with more safety features.

Used cars aren’t just for teenagers though. A lot of people realize what a bad investment buying a brand new car is. Not only that, the types of things you have to cover when buying a brand new car is a lot, especially if you are borrowing money to purchase it. There are a lot of extra things you have to pay for that you might not usually pay for on a used car.

Used car insurance is one of the cheapest ways to insure a car. It is defiantly more cost effective to have a used car and insure it than to insure a brand new car. There are so many things that you might have to add on extra anyways, that having a used car is just a better option than a brand new car, unless having the newest car is something that is very important to you.
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Unread 07-26-2008, 07:48 AM
Melville_kent Melville_kent is offline
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Re:Used Car Insurance

you have a great information concerning to the insurance,i respect your knowledge ,but i also want to share some information towards the insurance .that is what actually insurance means,why often people doing insurance of home ,and other things
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
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Unread 05-25-2009, 07:36 AM
ricky028 ricky028 is offline
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Your car insurance rates also depend upon the type of car you buy. A car with high performances will lead to higher premium as the risk of theft raises in the eyes of insurer. So it is better to buy a protected, family car, owned by a safe and stable person.
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Unread 07-02-2009, 01:45 AM
maxjlone maxjlone is offline
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I think that insuring a used car follows the same basic guidelines as insuring a new one, with the owner's goal being to protect himself from liability should something happen to his vehicle, its occupants, or other motorists. But all insurance is a matter of balancing cost versus risk, and for used cars, many consumers lean toward saving money today at the risk of having to spend more in the event of a claim.
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Unread 03-26-2012, 07:36 AM
matthew111 matthew111 is offline
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That's a good piece information.
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  #8  
Unread 04-08-2013, 11:08 AM
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Re:

BidOnMyAuto is capable of assisting you in the process of finding a local used car that fits the specific needs of your family, your budget and your desire to have a great running used car.




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