People that drive used vehicles usually are able to get a better rate on their auto insurance in comparison to people that drive new vehicles, but why is this the case? The reason that people with used cars tend to get cheaper prices on insurance is because their vehicles are less expensive to replace damages for. Think about it this way: If you got into an accident with a brand new car, it would probably cost a lot to replace. As the driver of the new car, you would probably want to make sure that you had the most comprehensive car insurance available to protect yourself from any damages.

Insurance companies know that people with new cars are going to need all of the coverage that they can get because having a new vehicle is more valuable than a used one. On the other hand, people that get used car insurance are able to get much lower prices because if anything happens to their used car, it is much less expensive to replace for insurance companies. Keep in mind though, that there are always going to be exceptions; a used Corvette is probably more valuable than a new Honda Accord. With that said, a new Honda Accord is going to be significantly more expensive to insure than a used one.

However, on average, most people that have used cars are paying less for their insurance than people with new cars. Being able to save money on auto insurance policies for used vehicles is nice because if you can’t afford an expensive car, you will get a lower rate on your insurance. Some of the least expensive cars to insure are used SUV’s with high crash safety ratings. If your goal is to keep your insurance cost as minimal as possible, you may want to contact your insurer (or look online) for a list of inexpensive used cars to insure.