One of the most significant factors when buying a new or used car is getting car insurance. Whether you buy a new car on finance or a used car on finance, you must get car insurance for it.
Most motorists will be searching for the most affordable car insurance, but with so many new and old short-term insurance companies promising so many benefits, how do you choose?
There are many factors to take into account when insuring a used car. Let’s look at how these factors can affect your insurance when buying a used car.
What factors influence car insurance when buying a used car?
- Car value: usually, the higher the car’s value, the more you will pay for your car insurance.
- Repair costs: you would be misinformed to think that an older car would cost less to fix and repair. This all depends on how readily available the car parts are. If the car you bought as a bargain is not common, your car’s parts will be more difficult to source and will end up costing more. This will have a significant effect on your insurance premium.
- Safety features: the safer the car is, the less likely you will get into an accident. Many vehicles are fitted with all sorts of safety features like Airbags, ABS, PDC, and alerts to warn you if you are drifting over two lanes, etc. This will all contribute to your car insurance premium, but remember that these safety features could cost a lot to repair.
- Car’s history: knowing the history of your used car is essential. Has it been in an accident? Has it been stolen or hijacked? This will all have a considerable effect on your car’s insurance premium.
- Car performance: if you were to buy a high-performance car, it would carry more risk as it does go a lot faster than the average vehicle. These cars have a higher chance of being involved in or causing a car accident.
- Car aesthetics: if you have added anything more to your car to make it more aesthetically pleasing, you run the risk of it being more attractive to criminals. Whether it is stealing flashy wheels or the whole car, this will likely increase your car insurance premium.
- Car usage: the amount of use your car receives can affect your car insurance premium. If your vehicle is more of a Sunday drive kind of vehicle you could pay less than a vehicle that you use daily in rush-hour traffic.
- Car driver: your track record can have a considerable impact on how much you pay for car insurance. If you were involved in many car accidents, you run the risk of a higher premium. Information about where you live and work are important factors as well. If you live in and work in a high-risk area in terms of crime, then you may pay more. If you don’t, it could be less. Things like having a lock-up garage or a car behind a closed lock and key gate can also influence your car insurance premium tremendously.
This is a general guideline to aid you when buying car insurance for a new or used car. Always research the vehicle you are buying first and shop around for the right car insurance and don’t fall for the first one you come across.
Are you looking to get car insurance when you buy your next used car? Feel free to get a quote for affordable car insurance with Prime, which comes with unique benefits like premiums that don’t increase* and a reduce to zero excess* with Prime South Africa. T and Cs apply.
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