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June 16, 2016

Car Insurance and Your New-to-You Used Car

If you have just bought a used car, you have to do one other thing before you can begin driving it – get auto insurance. Purchasing car insurance for a used vehicle isn’t that different from getting insurance for a new car.

Dallas used cars

Your rates will probably be lower than those for a new car because used cars are not as valuable as new ones. But you will still need to buy liability insurance. This is coverage for any damage that you might cause to other people or property while you are driving. You are required by law to have this kind of insurance. Most states require that you are covered for at least $15,000, but it’s highly recommended that you get at least $50,000 in property damage coverage.

Here are some tips on getting insurance for your used car.


  1. Review insurance companies.

You need to shop around to get the best rate. Look at insurance companies in your area and online with an eye toward how reliable they are. Good insurance companies will have a high rating from the A.M. Best Company, which rates insurers by how solid they are financially, meaning their ability to pay claims for those they insure. To see the insurance company ratings, you can go to


  1. Get quotes.

First, take a look online to get an idea of what the premiums are at the big companies. Two places to check are and Companies such as State Farm, Progressive, Geico, and others will also give rates on their own websites.


  1. Compare rates.

Here, you need to look at the premiums charged by the companies. This is the amount that you pay every month in order to have your car covered. The premiums can vary widely even for the same coverage. Insurance companies also offer various discounts that you should look at as well. These include things like good driver discounts, or discounts for having certain safety equipment.

You will probably have to question the insurers to find out what discounts are available and what you qualify for because companies rarely provide this information unsolicited.


  1. Look for ways to save money.

There are other things you can do to save money. For example, you can get cheaper rates if you insure more than one car with the same company, or if you get both home and car insurance through the same company.

You can also reduce your premium by having a higher deductible. This is the amount that you have to pay out of pocket before the insurance company will begin to pay.

When looking for a great – and affordable – used car for you or a loved one in the Dallas area, make sure you visit the PAACO location nearest you. Contact the PAACO Automotive Group by calling us 877-810-4555.

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