Used Car Insurance: Everything You Need to Know When You Buy A Used Car in Calgary

Car insurance is something that all of us at some point have to deal with because we need to pay for the protection of our vehicles. If you struggle to find used car insurance in Canada, fret no more. Here is everything you need to know when purchasing used car insurance.

Cost of Used Car Insurance

The cost of insuring a used car in Canada varies greatly and depends on numerous factors, including:

• Your driving history and experience
• Your claim history
• The make, model, and age of the vehicle
• Where you live (suburbs or rural areas)
• The type of coverage you choose

Your credit score will also affect the cost of your vehicle insurance rate. The better your credit score, the lower your premiums will be. It’s worth noting that Albertans pay the highest car insurance in Canada, according to a report by Ernst & Young. So, plan accordingly.

Is Used Car Insurance Less Expensive?

Yes, used car insurance often costs less than new car insurance. A vehicle’s value depreciates over time, and since older cars are usually worth less, the cost to insure them is typically lower. However, the exact amount you will save depends on the car’s make, model, and age. Keep in mind that the liability insurance cost (which covers damage you inflict on others in an accident) will likely remain the same regardless of the car’s age.

Required Documents for Used Car Insurance

You will generally need the following documents when insuring a used car in Canada.

• Personal identification (such as a driver’s license)
• Proof of car ownership
• Vehicle Information (make, model, year, vehicle identification number)
• Details of your driving history and any claims
• Safety and emissions test certificates (where necessary)

Having details of any modifications or repairs the car has undergone is also a good idea. This can influence the cost of your insurance premium.

Types of Insurance You Can Take for a Used Car in Canada

Canadian law requires motorists to have at least a basic level of auto insurance when you buy used cars in Calgary. Beyond that, you can choose from several optional coverages based on your needs and budget. Here are the main types.

Liability Insurance

This is the mandatory minimum insurance in all Canadian provinces and territories. It covers any damage you cause to other people or their property in an accident.

Collision Insurance

While optional, collision insurance is worthwhile for many drivers. It covers the expenses to repair or replace your used car if you are involved in an accident, regardless of who is at fault.

Comprehensive Insurance

Comprehensive insurance covers losses caused by events other than a collision, such as fire, theft, vandalism, natural disasters, or damage caused by animals.

Accident Benefits/Bodily Injury Insurance

This coverage pays for your medical costs, rehabilitation, income replacement, and more if you are injured in an accident.

Uninsured Motorist Coverage

This protects you if you are involved in an accident with an uninsured driver or if you are a victim of a hit-and-run.

Final Thoughts

With the right car insurance, you can get back on the road and start enjoying your vehicle. Auto insurance is complicated, so knowing what you are getting into is important. We hope this guide will be helpful to you.