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Car Insurance: Why Is It Important for You?

Mar 09, 2023

Auto Insurance

Car Insurance: Why Is It Important for You?

Whether you're a new driver or a seasoned veteran on the road, car insurance is an essential aspect of owning and operating a vehicle. Accidents can happen at any time, and the cost of repairs or medical bills can be astronomical without the proper coverage. In this blog, we'll delve into the importance of car insurance and why it's a critical investment for your peace of mind and financial security.

Do Most States Require Car Insurance?

Most states require that you have some type of car insurance in place before you take a car on the road. If you are buying a used car, you will need to have insurance in place at the time of the sale. If you already have car insurance on another vehicle, you can add a used car to your policy with a phone call to your agent.

How Long Do You Have to Get Insurance After You Buy a Used Car?

If you buy the car from another person, you may be able to wait until the sale is complete as long as you don't drive it. If you purchase a used car from a dealership, you won't be able to take the car off of the lot until you can provide proof of insurance. If you already own a car and have the policy to cover it, you will be able to add the used car to the same policy.

Do I Need a Separate Policy for a Used Car?

If you already own a car and have an auto insurance policy in place, you should be able to add the used car to your policy without purchasing a new policy. As soon as you buy a used car, you need to contact your insurance agent and let them know so they can start the process of adding the car appropriately.

How Much Does Insurance Cost for a Used Car?

The cost of insurance for a used car will depend on what type of insurance you buy. Comprehensive (also known as Other than Collision) insurance is purchased when you have a loan on a vehicle and will cover various types of damage. Collision is more affordable but will only cover damages caused during a collision. PL/PD (personal liability/property damage) will cover you when you are found to be legally liable and property damage coverage covers damages to the property of others.

Is It Cheaper to Buy Insurance for a New Car or a Used Car?

In most cases, it's cheaper to buy coverage for used cars, but it also provides less coverage. You will need to decide what level of coverage you feel most comfortable with. If the used car doesn't have a lot of value, a PL/PD policy may be just what you need.

Is Insurance for a Used Car Different from What Is Needed for a New Car?

The insurance you buy for a used car will normally not cover as much as the comprehensive coverage required by a lender when you finance a new car. If you purchase a used car and use a loan to finance it, you will need to purchase a comprehensive policy for your used car as well.

Cover Your Car and Yourself While on Road with Tompkins Insurance Agencies

If you have questions about what type of car insurance you need for a used vehicle, you can reach out to the agents at Tompkins Insurance Agencies. Our agents can help you find the policy that is right for you. Contact us today to get started with a quote.

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