One common complaint amongst car
owners is the fact that insurance premiums can often be outrageous. There are
numerous factors that determine exactly how much one will pay for auto
insurance. Among these factors is an individual’s driving record, the age of
the driver, and the type of vehicle that will be driven. While you cannot do
anything about your driving record or your age, you can reduce your monthly car
insurance premiums by purchasing a used Craigslist car. You may be asking
yourself how can I reduce my car payments by simply owning a used car. The
answer to this question is fairly simple. Car insurance companies base their
rates on a number of factors including the type of vehicles that we drive. The
more it costs to replace a vehicle and the higher risk that an individual is,
the higher the insurance premiums. Likewise, with a vehicle with a lower
replacement cost and an individual who is lower risk, the driver should expect
to pay less in monthly premiums.
When it comes to buying a used
car, there are many places that you can find a used car including local car
dealers and individual sellers. Individual sellers may list their vehicles in
the local newspaper or more commonly on the Internet on websites such as
Autotrader or Craigslist. By purchasing a used car, you can save even more
money in addition to what you will be saving in insurance premiums. Take a look
through Craigslist cars, cars on Autotrader, and automobiles in your local
newspaper. What you are going to find is cars that are much less expensive than
what you'll find elsewhere. One reason for this is because retail sellers offer
additional perks such as warranties and they also have to cover overhead costs
which can be quite substantial. So substantial, this is one of the main reasons
why many dealers go out of business. Between monthly rent costs and insurance
costs, dealers have to walk a fine line in order to make a profit.
Before you set your eyes on a
vehicle and purchase it, make sure that you understand how much the vehicle
will cost to insure. Finding out this information can be done by calling your
insurance company and telling them the year, make, model, and engine size of
the vehicle that you are interested in purchasing. Once they give you a monthly
insurance quote you should compare this to your current insurance rates in order
to determine whether or not it is something that you will want to pursue. It is
a good idea to check out the insurance cost of several cars before making a
decision. One great way that you can really save on car insurance is to free
yourself from full coverage. Full coverage covers the replacement cost of your
vehicle in the event that you have an accident that is your fault. While this
is a nice feature that can come in handy one day, it will often cost you more
money than it is worth, especially if you're driving an older vehicle.
How do you determine the right
time to drop your full coverage? Some say that if the additional yearly
premiums for collision plus any deductible exceeds one third of the cars value
then you should drop the coverage. Others say any vehicle that is over eight
years old should carry liability only insurance. While there is no correct
answer to this question, one should drop their coverage when they feel
confident that they are able to pay the replacement cost of a vehicle if it is
totaled. One should also feel confident in their driving abilities. Those who
are accident prone may want to hang onto that additional coverage, even if it
costs a bit extra each month.
