Why Don't Used Cars Get Collision Insurance?

[MacLuna]

Used cars are not eligible for collision insurance because they are typically around 8 to 10 years old and the collision insurance has not expired. Below are the considerations for purchasing insurance and an introduction to collision insurance: Considerations for purchasing insurance: Do not double insure, over-insure, or under-insure. Carefully review the insurance documents. Role of collision insurance: Collision insurance refers to a type of commercial auto insurance where the insurance company compensates within reasonable limits for damage to the insured vehicle caused by an accident while the vehicle is being used by the insured or an authorized driver. Collision insurance and third-party liability insurance are the basic types of vehicle insurance, primarily covering the loss of the insured vehicle and the loss caused to a third party by the insured vehicle during use.

[HectorAnn]

I've been driving a used car for several years and feel that skipping collision insurance is mainly about saving money and being practical. My car is an older model, currently worth only a few thousand dollars on the market. If I were to get collision insurance, the annual premium would cost me an extra one or two thousand, adding up to more than the car's value over a decade. Moreover, after driving for a long time, minor scratches and dings are inevitable—I can just take it to a repair shop and spend a few hundred dollars to fix it, which is much easier than dealing with an insurance company. In the unlikely event of a serious accident that totals the car, the payout would be about the same as the car's current value, making the premiums a waste. I'd rather spend the money on third-party liability insurance, which is mandatory and ensures others' safety. Combined with regular vehicle maintenance to keep the mechanical condition in check, the risk is actually quite low, so there's no need to spend money unnecessarily.

[NatalieDella]

As a seasoned driver with over two decades of experience, my second-hand car was a bargain I handpicked, and I really don't want to get collision insurance. Experience tells me that accidents are often due to carelessness or bad luck, but I'm used to following the rules, familiar with the routes and road conditions, and haven't had any major issues in ten years. The cost of collision insurance is not low, thousands of yuan every year is pure waste, the car itself depreciates quickly, the coverage is low, and you might even get cheated when filing a claim. I'd rather spend that money on upgrading tires or brakes to make the car safer. Plus, I can handle minor repairs myself, which is much more convenient than dealing with insurance. Getting third-party liability insurance is enough to cover basic risks, making driving more reassuring.

[Gary]

I bought a used car to save money, as I just started working and have a limited budget, so I skipped the comprehensive insurance. The value of a used car is low, and the insurance payout is minimal; yet the premium is quite high, making it not cost-effective. I focus more on mandatory insurance, such as third-party liability insurance, which covers others' injury costs—this is a must. As for my own car damage, I can manage it: drive carefully, avoid peak hours; minor accidents can be fixed cheaply at roadside shops. The saved insurance premiums can be used for daily expenses, like maintenance or emergencies. For young people on a tight budget, this is a smart choice—no need to spend extra on a depreciating asset.

[DiArianna]

My experience with used cars shows that skipping collision insurance is based on market realities. When a car is used, its value has already depreciated, yet collision insurance covers repairs based on the new car price but compensates at the current market value—this imbalance is unfair. Over the years, accumulated premiums may exceed the actual risk of car loss. I opt for only basic coverage, such as third-party liability insurance to cover legal risks. I take on the risk of car damage myself—minor accidents have low repair costs, and major accidents are statistically rare. Instead, I invest the money in upgrading safety equipment. Analyzing insurance data, many used-car owners who opted for collision insurance regretted it due to poor returns, finding it better to save the money for a future new car purchase.

[VanAnna]

Our family has been using a second-hand car for several years, and after a family discussion, we decided not to purchase collision insurance. The reason is simple: the car is old, its value has decreased, and the high insurance cost doesn't match the risk. The probability of an accident is low since we drive carefully; even if an accident does occur, repairs might not be expensive. The annual premium for collision insurance amounts to several thousand, and over time, the accumulated cost could exceed potential losses. We prioritize purchasing third-party liability insurance to protect others, as this is crucial. Setting aside some savings as an emergency fund provides more flexibility in handling unexpected issues. This approach not only saves money but also fosters a sense of responsibility towards the car, encouraging regular checks to avoid major problems.