Compare Car Insurance quotes for used cars
Cars can be divided into two broad areas – new and used. Used cars can then be divided into many areas but in this article we’ll consider just two – ordinary and extraordinary. An ordinary used car is one which could be a few months or a few years old. An extraordinary used car could be a vintage, veteran or classic car so classified because of its age and/or rarity. Car insurance for all used vehicles is vital and especially so if the vehicle has historical importance. Owners of used cars should study the details of policies and choose the one which best suits their needs.
When we talk about extraordinary used cars we refer to veteran, vintage and classic vehicles. Definitions may vary in different countries but usually the following rules apply.
- Veteran cars are those built up to 1918
- Vintage cars are those built from 1919 to WW2
- Classic cars are those built after WW2 to 1973
These of course are all used cars but differ from modern vehicles which too are pre-owned. In insuring any type of used car you need to be aware of at least three important aspects of your car insurance policy.
- Agreed value
- Choice of repairer
- Guarantee of any work done
The agreed value is just that. It’s the price you and the insurer ‘agree’ is the replacement value if the car is stolen. Do not confuse the agreed value with the market value. This is the price the vehicle would fetch in its current condition. Remember that most vehicles depreciate in value over time. The exceptions might be vintage or veteran cars which because they are rare can actually appreciate in value.
So you need to decide if you wish to insure your used car for an agreed value or for the market value. The difference in premiums could be significant but then so too will be the payout if your car is stolen or written off. Therefore it is very important that you take some time to compare car insurance quotes.
Some insurers have certain conditions attached to their policies. It might be that they require at least two written quotes for any repairs or that they must approve any repairer who quotes on your car. If these things are important to you, consider them when choosing an insurer. And all reputable repairers will guarantee their work but make sure you have a say in who will take on your claim.
It’s your decision
Specialty insurance companies handle car insurance for vintage, veteran and classic cars but for most us, our used car can be insured by any one of a dozen or more companies. If your car is only a year or two old then you need to ask yourself about replacing the vehicle should you have a serious accident or if the vehicle is stolen.
You can save quite a bit of money with a market value cover because the insurer is facing a lower risk as your car depreciates in value over time. But your payout if you make a claim will be less and may not allow you to buy a comparable car.
But with an agreed value policy, of you make a claim, your ‘new’ used car will be as agreed. You will get to have a car of comparable quality but you will have paid a higher premium for that right.