Used cars are in demand and expensive. The average cost of a used car is now just over $25,000. You can still find a used car for less, but they’re harder to come by.
One of the first decisions when you buy a car isn’t where you’re going to drive to. It’s whether you should get used car insurance or not.
If you’re thinking about going without car insurance for used cars, you should keep reading. These reasons tell you why you should reconsider and car insurance for your car.
It’s Legally Required
Why do you need used car insurance? It’s the law. Only two states don’t require car insurance, and they are New Hampshire and Virginia.
When you’re buying a used car, you might not be able to drive it off of the lot without insurance. That’s because car dealers know that it’s legally required.
If you’re trading in an old car, you might be able to transfer the policy to the car before you leave the dealership.
Unless you’re in a minor fender bender, you’re probably going to need a car repair.
Did you know that many car insurance policies fix window chips at no cost? Car insurance companies know that a little chip can turn into a huge crack that has to be replaced.
The insurance company finds it to be less expensive to send someone out to fix a chip than to
Your Lender May Require Used Car Insurance
With the prices of used cars skyrocketing, you’re unlikely to have cash on hand to make the purchase. You’ll have to finance the car with a used car loan.
Banks assume the risk of the purchase. They also know that if something happens to the car, you’re probably not going to pack back the loan. Lenders require that you have car insurance to prevent this from happening.
Protect Your Passengers
You probably have friends or clients to drive around. Passengers who get injured in your car will have to find a way to pay for their medical bills.
Your car insurance policy might have a clause that covers passengers in your car. Be sure to check with your insurance agent.
You could be in an accident that’s completely your fault. If someone gets injured in a car accident and you’re at fault, you’re facing a lawsuit.
You’d have to hire an attorney and reach a financial settlement. That can easily cost thousands of dollars. Used car insurance covers your liability (and the legal costs) if an accident is your fault.
Don’t Wait to Get Used Car Insurance
Do you need used car insurance? Yes! Unless you live in the two states where car insurance isn’t legally required, you need to have car insurance.
Car insurance protects you legally and financially if you ever get into an accident. You’ll have peace of mind because you have car insurance for used cars.
For more tips to buy car insurance, check out the other articles on the blog today!