insurance
Auto insurance quote for older car
If you're buying a used car worth less than $2,000, you might wonder: Why even bother with an auto insurance quote?
One reason, of course, is the law: In most states, you will be required to insure regardless of the value of the vehicle. Some states require proof of insurance before you can register the car.
As with any type of insurance, shopping around for the best auto insurance quote for your used car can save you lots of money. But first you need to know what kind of insurance you need -- and don't need -- for a used car.
Which coverage to skip
Don't waste money on premiums if the deductible is more than the value of the car. Here are the types of coverage you can forgo with a low-value car:- Comprehensive. Covers damage to your car (other than a collision with another vehicle), such as theft, flood, fire or damage from animals. States often do not require this insurance, but if you need a loan, the bank or lienholder is likely to demand it.
- Collision. This coverage is for when your car hits another vehicle. It pays to fix your car (minus the deductible). Coverage is usually limited, however, to the cash value of the car.
Don't skimp on liability insurance
On the other hand, even a clunker of a car can cause a lot of damage to other vehicles or people. Therefore, liability insurance is a must. Here are the two types of coverage you need in an auto insurance quote.- Bodily injury. This will cover any injury your car does to another person. It also covers your legal defense bills if the other person in the accident decides to sue. Note that this insurance does not cover any damage to vehicles. And it only covers the other party in the accident -- not you or any of your family members on the policy. Even if you have a low-value car, you should opt for the most coverage you can afford -- to protect you and your personal assets.
- Property damage. This will cover damage to another car or other property such as a lamppost or railing. Again, don't skimp on this type of coverage with your car insurance. You could be putting yourself at a financial risk if you happen to damage another person's property and you are sued. Like the bodily injury liability insurance, property damage liability also covers legal defense if you are sued.
If you or other drivers in your family do not have health insurance, you might wish to purchase an accidental medical protection plan, also called accidental death and dismemberment. This type of insurance will cover medical expenses for you and your family in case of a car accident.
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