Buying A Used Car From An Auto Dealer: How to Insure It?

When a vehicle is already purchased, it is most likely that it is insured, so it will depend on the company and the new driver to maintain the policy.

Buying used cars is an attractive option for those drivers looking for cheap prices. Last Year, thesale of second-hand vehicles reached to 40.4 million units, according to Edmunds' estimates.

The main attraction of second-hand cars is in the smallest amounts and in the least depreciation of their value. When buying a vehicle of this type, you will most likely find that it is already insured. What happens then?

In this situation, the former owner can offer you the subrogation of the policy, so that you accept the conditions that you have contracted and become responsible until the expiration of the car insurance. At this point, the company will have to be informed of the sales process and accept the change. It is possible that, if your profile is too different from the previous policyholder and the risk of loss varies, they will refuse to transfer.

If it is you who already have the insurance of your previous car, you can ask that it be applied to the vehicle you just bought.

You may also prefer to hire your own policy from scratch, so you will have to ask yourself which of the cheapest general car insurance quote best suits your needs. The normal thing to buy a new car is to opt for the modality of all risk, but if it is second-hand it will usually be enough to hire the third-party or extended third-party and ensure that it has the coverages that suit you best.

The main problem of securing a used car is the age. From 10 years of age, it is considered that the car is more likely to suffer a breakdown, so premiums for these vehicles are higher.

What if I am the seller?

When putting your car for sale, it is normal for the time of sale to catch you with the car insurance paid for a whole year and half amortized. If this is your case, there are several ways not to lose the investment. The first is that the company returns the part of the premium that you have not taken advantage of so that you do not pay more. Another possibility is, as we have said before, transfer the policy to the new owner of the vehicle, but it is up to the insurer to accept the policyholder.

Finally, you can resort to the premium extension, which consists of partially paralyzing the unused money and activating it when you have another car, although this reservation is usually limited to one year. Again, it is in the hands of the company that you have hired to accept the option.

How exactly to choose the best insurance?

Aware of the importance of hiring good protection for your used car, now is the time to learn what to consider when finding the best insurer and the ideal plan. After all, it's not worth it to pay for a service that won't satisfy you satisfactorily when you need it most, don't you agree? Then follow our tips!

Research the reputation of the insurer

Researching pricing and payment terms are, of course, an essential step, as it ensures that you will find broad coverage without compromising your family budget. But equally important is to hire a serious company, backed by the market and former customers.

With that in mind, do an internet search on the insurer. Visit consumer rights protection websites, where you can attest to the problem-solving capabilities of businesses. Other than that, if possible, try to talk directly with other insured vehicle owners to get your opinion about the insurers.

Hire services you will really use

Hiring the broadest service of all is always tempting, but remember: the higher the coverage, the higher the price. Therefore, evaluate if you really need to be insured against any and all eventualities!

A service usually offered by insurers is, for example, the spare car. But if your family has more than one car in the garage if one of them needs to go out for a repair, for example, it is quite possible that you do not need to request an interim, right? So think about it: is it worth it to overpay for this?

Be honest and review the contract

The insurance contract is a very important document, as it discriminates against all situations that may be covered by the service and also points to occasions when the insurer may simply refuse to provide a service. If you have a contract stating that no one else drives the vehicle, but it collides with your child, for example, you will have trouble with the administrator.

In order not to have to deal with this type of headache, be extremely honest in completing the registration form, and check term by term of the contract to know your rights and duties, not being negatively surprised at a time of need.