Why Is the First Year Insurance More Expensive for a Transferred Vehicle?

[DiLaura]

The reason why the first year insurance is more expensive for a transferred vehicle is: Compared to a new car, the performance of a used car has a significant gap, and once a used car is involved in an accident, the resulting losses are much greater than those of a new car. Therefore, according to the calculation rules of insurance premiums, the insurance cost for a used car will be relatively higher. Price Affects Premiums: The price of the used car will also affect the insurance cost to some extent. Additionally, the high insurance cost is mainly due to the variety of insurance types involved in vehicle transfer. Remember to Get the Insurance Policy When Transferring Insurance: After the vehicle insurance is transferred, the claim history of the traded vehicle is also very important. A car with a claim history often has higher insurance premiums than one without. Therefore, it is crucial to request the original insurance policy from the previous owner. If the vehicle had previous accidents that were overlooked, the new owner will have to bear the additional insurance costs.