Is the Insurance Premium for Used Cars the Same as for New Cars?
2 Answers
Auto insurance is divided into compulsory traffic insurance and commercial auto insurance. The premium for compulsory traffic insurance is the same for used cars and new cars, while the premium for commercial auto insurance is calculated by the insurance company. Since the value of used cars and new cars differs, the types of coverage and insurance amounts chosen by the owner when purchasing insurance will vary. Additionally, if a used car has had previous claims or no claims in past years, it will affect the premium. Introduction to Compulsory Traffic Insurance: The full name of compulsory traffic insurance is "Compulsory Traffic Accident Liability Insurance for Motor Vehicles." It is a mandatory liability insurance provided by insurance companies to compensate for personal injuries, deaths, and property losses caused to victims (excluding passengers and the insured) in road traffic accidents involving the insured vehicle, within the liability limits. Necessity of Purchasing Compulsory Traffic Insurance: Compulsory traffic insurance ensures that victims of motor vehicle traffic accidents receive compensation and promotes road traffic safety. It provides timely and basic protection for victims of traffic accidents.
I just bought a used car, and the insurance cost is indeed different from that of a new car. Insurance mainly considers the vehicle's value and risk. Due to severe depreciation, the price of a used car is much lower, which significantly reduces this part of the premium. But don’t assume all types of coverage are cheaper—third-party liability insurance and passenger liability insurance cost about the same for both new and used cars, as the risk to people remains unchanged. Additionally, the car’s age matters a lot. For used cars under five years old, the premium might be close to that of a new car, while premiums for cars over ten years old can drop sharply. Insurers also consider the accident rate of the car model. Some older cars have hard-to-find repair parts, making coverage for repairs even more expensive. My advice is to check the insured amount for collision coverage when buying used car insurance—don’t insure it at the original new car price and end up overpaying for nothing.