Regarding car insurance in Portland Maine, does it matter if the car I will purchase is new one or a used car?

Malcolm

Portland, ME

In general, a used vehicle will cost less to insure since its worth is normally less than a brand new car. Also parts and repair costs tends to be lower for a used car in comparison to a new car and thus if the car must be repaired after an accident the expense should be less for the insurer to fix the used car.

If the new car though is a mid-size family sedan it may cost less than let’s say a used Porsche to insure. So it will still depend on the type of vehicle as well as the age of it on how insurance company will rate your vehicle. Collision-damage costs are also one of the main factors considered in differentiating the cost of insuring one type of car over another.

To a lesser extent, you also want to look at how attractive the car is to thieves, whether it is new or used, if a car is popular to thieves and often stolen it may be higher to insure. If you are searching for a car to buy in Portland, ME and are trying to decide between a new or used car, you can get an automobile insurance quote online if you have internet access, on each vehicle to see what the price difference would be for each to be insured.
One of the best ways to lower your annual premiums is to have a higher deductible amount.. Like a $1,000, is what I carry personally.

Now, if you are a claim free and safe driver like I am, you could be saving a ton of money each year on your premiums.  People fail to realize that the deductible amount is only paid when they file a claim and their insurance company pays that claim.

I have a 1987 sedan that I don’t use, but I own it. Do I have to get used car insurance coverage for it anyway?

Sam

That’s a great question, Sam.

The answer to that is dependent on where you live, though. The state car insurance laws are pretty mixed up on this point, because some states require you to have used car insurance coverage even if your car is propped up on blocks of wood in the front yard. In New York, you have to have auto insurance so long as you own a vehicle and have the title, or are buying a vehicle, and it is of no consequence that you aren’t actually using that vehicle. In order to be excepted from this rule, you would have to give evidence through a certain form that your car is not only unused, but unusable, or that you have sold it to another person or to a junk yard.

If you don’t want to get in trouble by falling victim to a random check of car insurance, then I would advise you to do yourself a favor and look up your state’s department of insurance website to find out what kind of laws your state has concerning this.

Cheers,

Fashun Guadarrama.

A couple of weeks ago I bought a used car in cash, and now I need to get used car insurance. Now, I know this car isn’t top of the line, but I’m not sure what kind of coverage I should get. Some help?

Anthony

Good question, Anthony.

Used cars tend to cost more in upkeep than do new cars, especially the used cars which can be bought for cash. They need more repairs more often and are less reliable on the road. On the bright side, though, you don’t have to make a monthly payment for them, so the only thing you need to think about is getting car insurance coverage, which confuses a lot more people than just you, Anthony. On one hand, everyone wants to protect their car, but that protection needs to be taken down a notch or two with used car insurance.

Every state except New Hampshire makes you get some kind of car insurance, usually just the basic liability.This coverage takes care of the other driver and their car insurance claims if you cause an accident, but the amount that the state makes you get normally isn’t enough to protect for real. If you want to stay on the safe side, I would get more liability than required. That goes even if you have the cheapest car in the world, and it goes even more so if you have a big, damage causing vehicle like an SUV.

When thinking about what kind of coverage you should get beyond just that, you have to take into account the cash amount that you paid for the car in the first place, and remember that you probably paid more than it is actually worth. If your car is worth than a thousand dollars, stick to the basic coverage. If it’s worth a little more, you should consider a little further and might decide to only get liability or to get a little more.

As someone who has had bad experiences with cash cars constantly breaking down, I suggest that for an older car you get mechanical breakdown coverage, since you normally don’t have the option of getting a guarantee. Not all car insurance companies offer this, but it is extremely useful. GEICO is one of the companies that does.

Cheers,

Fashun Guadarrama.