What are the main differences when it comes to getting insurance for a new or used car?
Insurance can be a minefield, there are so many variables that insurance companies look at when providing you with a quote. And if you are unsure if a used or new car is the way to go then insurance cost could be a big deciding factor. We break down the main things to consider between new and used cars when it comes to insurance.
When it comes to buying a car, one of the most important factors to consider is the cost of insurance. Insurance is a necessary expense that protects you in case of accidents, theft, or damage. However, the cost of insurance can vary depending on whether you’re buying a new or used car.
We look to break down the main things you should consider when looking at insurance for new vs used cars.
One of the biggest differences between buying a used car and a new car is the cost of insurance. Generally, used cars are cheaper to insure than new cars. This is because used cars are generally less expensive, and therefore, the cost to replace them is lower in the event of an accident. Additionally, insurance companies consider new cars to be more valuable and therefore more expensive to repair or replace.
However, it’s important to note that the cost of insurance can vary greatly depending on the make and model of the car, the driver’s age and driving history, and other factors. So, while used cars may be cheaper to insure in general, there may be some used cars that are more expensive to insure than certain new cars.
Another factor that can affect the cost of insurance is the condition of the car. New cars are generally in better condition than used cars, and insurance companies may view them as less risky to insure. Used cars, on the other hand, may have more wear and tear and may be more prone to mechanical issues or accidents.
If you’re buying a used car, it’s important to have a really good look around the car for any noticeable damage or colour changes in the paintwork as this can indicate a repair. It is also worth listening out for any unusual noises during the test drive as this may also indicate an issue.
It is always recommended when buying a used car to carry out a comprehensive history check to make sure you know all you can about the vehicle pre-purchase. Here at Motorscan, we provide 80+ data points reports so you check if the vehicle has ever been in an accident or been stolen which can affect the cost of insurance.
New cars typically come with a manufacturer’s warranty, which can provide peace of mind and save you money on repairs. Many new cars also come with maintenance plans, which can cover regular services like oil changes and MOTs. Insurance companies may view new cars with warranties and maintenance plans as less risky to insure as the manufacturer has guaranteed the vehicle for a specified amount of time.
Used cars, on the other hand, may not come with a warranty or maintenance plan, and repairs can be more expensive. However, some used cars may still have some remaining manufacturer’s warranty, and some dealers may offer their own warranty or maintenance plans. It’s important to research the warranty and maintenance options for the specific used car you’re interested in and compare the differences in insurance cost online.
The car’s age is another factor that can affect the cost of insurance. Newer cars may have more safety features and be less prone to mechanical issues, which can make them less risky to insure. However, newer cars may have more advanced technology, which can make them more expensive to repair or replace.
Used cars, on the other hand, may not have the latest safety features or technology, which can make them more expensive to insure. However, some used cars may still have good safety ratings and features, so it’s important to research the specific make and model of the car.
One of the main advantages of buying a used car is that it has already gone through the process of depreciation. New cars lose a significant portion of their value in the first few years of ownership, which can make them more expensive to insure. Used cars, on the other hand, have already gone through this process of depreciation, so can be cheaper to insure.
However, it’s important to note that the value of a used car can also decrease over time, which does affect your total loss payout and is something to consider especially if you have finance attached to the car.
There are so many variables when it comes to car insurance and it is not always clear why some cars are more or less expensive to insure. While used cars are generally cheaper to insure than new cars, there are many other factors that can affect the cost of insurance, such as your driving history, location, and age. It’s important to research and compare the insurance costs for both new and used cars before making a decision.
Ultimately, the decision to buy a new or used car comes down to personal preference and budget. While new cars may offer the latest technology and safety features, they can be more expensive to run and maintain and may lose value quickly.
Used cars can be cheaper all around from purchase to insurance, but may require more maintenance and repairs as time goes on.
By taking the time to research and compare your options, you can find the right car and insurance coverage that meets your needs and fits your budget. Whether you’re buying a new or used car, insurance is an important expense that protects you and your vehicle, so be sure to choose a policy that provides the coverage and peace of mind you need.
