Why Can't You Purchase Collision Insurance for Used Cars?

[LaAlaina]

Used cars often cannot be insured for collision damage primarily because their value is too low, leading insurance companies to decline coverage. Below is relevant information about auto collision insurance: 1. Basic Concept: Collision insurance is a type of commercial auto insurance where the insurer compensates within reasonable limits for damages to the insured vehicle caused by an accident while being used by the policyholder or an authorized driver. 2. Insurance Premium Discounts: The new policy also establishes 12 auto insurance rate adjustment tiers based on previous claim records, dynamically adjusting premiums according to the prior year's claims. The highest tier is level 12, where the premium adjusts to 200%; the lowest is level 1, with premiums adjusted to 50%.