How does auto insurance work? is it cheaper if a buy new car or an old one?
Question:
Answer:
It's cheaper for an old one if you're getting collision insurance along with liability.
The basic insurance that is required by law is liability insurance. This covers you in case you are at fault in an accident. Its rate depends on several factors--your age, your driving record, and where you live (the population density of where you keep the car).
Collision insurance will repair your car no matter who is at fault (with a deductible). It's really not worth it if you get an older car, as it's usually cheaper to do the repairs yourself.
it depends alot on the value of the car and the type of car.
It's always cheaper to buy a used car than a new one, even if the used one costs more than a new one, because on the used one you aren't losing money to depreciation. And the older the car, the less the insurance will cost.
cheaper for an old one in insurance, but most likely more expensive in car repair.
More Questions & Answers...