Many consumers purchase and operate older automobiles in order to save money versus buying a new car. Although the repair costs might be higher, there is usually substantial savings in buying used instead of new. One thing that many consumers don’t realize is that they can save on Auto Insurance Naples FL when buying used as well. In general, the cost to insure used vehicles will be a lot lower than insuring a new one.
First of all, used car owners should not skimp on liability coverage when buying Auto Insurance Naples FL. Most consumers should have a liability limit that is as high as their net worth. A car that is not worth much can still cause a lot of physical damage. An older vehicle can seriously injure people just as well as a brand new vehicle. That is why it is very important to not skimp on liability coverage when buying auto insurance.
On the other hand, it may be a good idea for some used vehicle owners to decline comprehensive and collision coverage. These two coverage options pay for damage to the insured’s car regardless of who caused it. If the used car does not have a lot of value, it makes a lot of sense to drop collision and comprehensive. It is important to note that auto insurance companies are not required to pay for more than the current market value of the vehicle. In addition, the deductible is also subtracted from the claim as well. Consumers should not forget that they paid premiums as well. A collision or comprehensive claim on a car with little value may not result in much money. On the other hand, many used vehicles still retain a lot of value due to the preference by many consumers to keep driving their old cars instead of buying new ones. It is very important to look up the current value of the car prior to buying Auto Insurance Naples FL.
Finally, it is important to note that those who are financing their used vehicles have to buy collision and comprehensive coverage. It is usually a requirement as part of the car loan. If the used vehicle has not been paid off, it is a very bad idea to drop full coverage on Auto Insurance.
