Are you a new driver shopping for your first car? Are you a seasoned vet that’s been driving for years? Either way, buying a used vehicle instead of a brand new one can save you money up front, but how does buying a used car affect your car insurance cost and coverage?
Here are a few things to consider when buying car insurance for used vehicles.
What kind of insurance do you need for a used car?
Depending on the age and value of the used car, you’ll likely need the same kind of coverage that you would have for a brand new car. Liability coverage is mandatory in every province in Canada and covers you if you cause damage or injury to someone else’s property in a car accident.
You could decide to go without some of the optional coverages (like collision or comprehensive coverage) to save on your premium — but this is only a good idea if you can afford to cover the cost of repairs to your vehicle if it gets damaged.
Financing or leasing a used car? You may be required to purchase collision and comprehensive coverage.
What’s not covered?
Knowing what is not covered is just as important as knowing what is. Most used cars are no longer under warranty, so remember things like rust, corrosion, tire damage, mechanical breakdown and general wear and tear aren’t covered by your policy.
Also, some types of vehicle modifications may not be covered by standard car insurance companies. Before purchasing a used vehicle, always ask if any modifications have been made and make sure to reach out to your broker to find out if those modifications could affect your insurance.
It’s always a good idea to shop around. Always ask questions about your coverage options and find out if any discounts are available. Your licensed broker can help you compare car insurance prices and find the right coverage for your situation. At Petley-Hare, our brokers work with you to create tailor-made solutions to ensure you have the right coverage in place for maximum protection.