Insurance is an essential part of owning any car; it can protect you from the costs associated with damage to your vehicle, damage to someone else’s vehicle or property and theft of your car or its contents. There are a huge number of vehicles on Melbourne’s busy roads, which can inevitably lead to collisions, both minor and major. And, like most capital cities, Melbourne has its fair share of car theft. It’s important to be covered.
Luckily, there are many options for insuring used cars in Melbourne, allowing you to “shop around” for the coverage that best suits you.
Many car owners find it easiest to go straight to their state’s automobile club when insuring a used car – in Melbourne, it’s the RACV. Before you make any decisions, investigate the available insurance options and compare them against policies from other providers. Weigh up the drawbacks and disadvantages of each, and decide what is most important to you; “online only” used car insurance in Melbourne is generally cheaper than other options, but you’ll probably find it harder to get personal service. If you prefer face-to-face contact, look around for a used car insurance provider with a customer service office in Melbourne.
Used car insurance in Melbourne follows the same general principles as new car insurance, setting a premium based on a number of factors, including your driving record, age, the type of car and where you plan to keep it. Of course, used cars are not worth as much as their brand new counterparts, so you might be able to get a lower premium on policies that cover the costs of replacing your car in the event of irreparable damage or theft, such as Third Party Fire and Theft or Comprehensive insurance.
Third Party and Third Party Property insurance are unlikely to carry a lower rate for a used car; these types of policies cover only damage caused by you to another person’s property, the risks of which remain the same whether you’re driving a new or used vehicle.