Insurance for cheap used cars
A brief search in the used car parks from the United States and on the sites that have specialized in selling used cars will reveal the fact that there are plenty of cars you can buy for several thousand dollars. But what about insuring those cars? How much is it worth spending for this?
First of all we need to talk about different insurance types. Liability insurance is mandatory in every state of the country and you simply cannot go on the road without having one. However, the situation is a bit different when it comes to comprehensive and collision insurance that might or might not worth paying the money.
Of course having your car insured makes you sleep well at night, but there is a limit under which the money you will pay for this will exceed the market value of the car. Generally it is said that this limit for used cars in the United States is at the moment around 2000 dollars.
So if you have bought and old car with let's say one thousand dollars, it is not recommendable to pay for a comprehensive and collision insurance policy because you will only lose money even if you are involved in an accident. On the other hand, if the value is around three or four thousand dollars, you can get it insured, but make sure you adjust the coverage so that you won't pay more than it is worth it.