Everything you need to know about used car insurance

If you’re financially savvy, you know buying a used vehicle can be a smart move. The initial cost is often thousands of dollars less than buying new, which can mean a pretty sweet deal for you. That’s not the only savings. Insurance on used cars can be more affordable too.

Do you need insurance to buy a used car?

You don’t need to secure insurance coverage before buying a used car, but you will need it to drive the car. If you’re buying the vehicle at a dealership, you’ll be asked to show proof of insurance. 

If you already have insurance on a different vehicle, you may have a grace period that automatically covers your used car purchase. You will need to contact your agent to add the car — usually within a week or up to a month, depending on your insurer.

What coverage do I need on a used car?

For any vehicle, you must have liability insurance to cover the other party’s expenses when you are at fault in an accident. For example, Utah used car insurance must include a minimum $30,000 per person of bodily injury coverage, for expenses such as medical bills and lost wages. Property damage liability is also required, a minimum of $25,000 per accident.

In addition, you’ll need personal injury protection, which covers your own medical costs, regardless of who is at fault.

Additional insurance coverage

Comprehensive and collision coverage is also required if you are financing a used vehicle. Insurance will pay to replace or repair the car if it is damaged in an accident or is stolen.

Even if you pay cash, you may want the additional coverage if the used car is fairly new and/or would be expensive to replace or repair. You can check the value of your used vehicle on the National Automobile Association website to decide if it’s cost-effective for you.

Notify your insurance agent of your used car purchase within a week to ensure you have coverage.

How much is full coverage insurance on a used car?

Many factors go into determining insurance coverage costs, so there is no single answer. If you have the car’s VIN, your current insurance company can give you an exact quote. If you’re shopping for a used vehicle, you can get an estimate for coverage costs based on the year, make and model.

How can I lower my used car insurance?

Insurance can be expensive, so check with your agent to see if you qualify for lower used car insurance premiums. You can usually get a discounted rate if you:

• Include multiple cars on policy.

• Have multiple policies: car, home, etc.

• Choose paperless billing.

• Pay premiums in full twice per year.

• Use an insurance app that tracks your driving.

What are the cheapest used cars to insure?

Insurance rates are based, in part, on safety features, repair costs and theft rates. Using those factors from the Insurance Institute for Highway Safety, expect small SUVs and large pickup trucks to be the cheapest used cars to insure. 

In addition, most small cars cost less to insure than midsize sedans or large SUVs due to overall repair costs and market value.

Shopping for a used car? Find it on KSL Cars, Utah’s go-to source for great deals.