Used car auto insurance rates are generally lower than those for new cars. Buyers should take this into consideration when buying their next car.
As new cars are more valuable than older models, it’s only natural that insurance premiums would be higher. In the event of an accident, the cost of repairs will be higher for newer model vehicles. New cars are also at higher risk of being broken into or stolen.
New cars require more insurance coverage than older models, as they are more expensive investments. New car owners often invest in collision or comprehensive insurance coverage which may not be needed by owners of older model vehicles. Older cars of less value rarely need collision coverage as repair costs would exceed the car’s actual cash value. If you’re looking for reduced insurance premiums, the smarter option would be to purchase a used vehicle as opposed to investing in the latest design.
For more insight into auto or life insurance in Illinois or to obtain a quote, contact Steve Wilk Insurance Agency located in Lombard, IL.