Which Type of Car Insurance is Best for a Used Car?

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(Photo Credit: Freepik)

Looking to get car insurance for your used car? That's a responsible decision as not having insurance can leave you vulnerable financially in case of an accident.

For used cars or second-hand cars, if the previous owner has insured the car, sometimes it may be passed on to the new owner if they are agreeable with the policy. Just transfer the ownership to the new owner. Alternatively, if you do not like the policy, you can ask the previous owner to cancel the insurance first.

If you decide to insure a used car, you should consider these 3 parts before choosing the type of insurance.

1. Car Conditions
  • Used car that's almost in brand new condition with only about 2-5 years of use. If your budget permits, we encourage you to take up first-class car insurance to get the highest coverage and compensation for both accident cases with and without parties.
  • Second-hand cars in average condition with more than 5 years of use. We would recommend that you go for type 2+ insurance because it has the same coverage as the first-class insurance, but the insurance premiums are cheaper and differ only with regards to protection against natural disasters and only triggers when there are parties involved. If there is no party, compensation will not be granted.
  • For used cars that have been used for 7-10 years or more, we suggest the type 3+ class insurance because the car is quite old and thus might not need as much care as a newer car. It’s suitable for skilled drivers because insurance class 3+ provides coverage similar to insurance class 2+, the only difference is that insurance class 3+ doesn't cover fire damage. Or if you want to save more on budget, you can choose to get third-class insurance instead. It will help compensate only for the repair cost of the injured person. 

*Conditions of each type of insurance depend on each company, do further research before making a decision.

2. Driving Habits

Understanding your driving habits and any habits the previous owner has can help determine its condition. You can then calculate the value and suitability of whether or not to get it insured.

(Photo Credit: Freepik)

3. Budget for Insurance Premiums

Of course, each type of car insurance has different insurance premium rates. First-class insurance for example, has prices that can be a bit high but it's suitable for used cars in good condition that still need a lot of maintenance to maintain the car in good condition for a long time. If anything happens, you will have a source of help. But if the budget doesn't permit it, opt for the next level that suits your needs best.

If asked which car insurance is the best we can tell you that we can't really answer because it depends on the various factors as mentioned above. Let's evaluate the car's condition, usability, and budget first. Then study the details of the various policies that are most suitable for the type of insurance.

Want to sell a used car? You can choose to sell at Motorist. It's suitable for all sellers because it's easy to sell, hassle-free and definitely worth the price!

Claim your free car valuation today!

Read More: Is car insurance cancellation needed when selling a used car?

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