How Much Car Insurance do I Need?

Congratulations on your recent used car purchase from Express Auto Auction! 😃 

Now, time for car insurance. Should you opt for additional coverage, or stick with the minimum? Whether extra car insurance is worth it really ends up boiling down to your individual circumstances and needs. 

Here are some factors to consider when deciding if additional car insurance coverage is a good investment for you:

Current Coverage:

Start by reviewing your existing car insurance policy. It's essential to understand what coverage you already have before considering additional options.

Driving Habits:

Assess your driving habits. If you commute long distances, drive in heavy traffic, or frequently use your vehicle for business purposes, your insurance should very likely be different from your neighbor who drives every third week of the month. 🚗

Have you thought about what’s good mileage for a used car?

Value of Your Car:

Consider the value of your car. An older or less valuable make and model might need only minimal coverage, since the cost of repairs or replacement may not justify comprehensive coverage.

You may already know this, but you’ll find great value at far better prices than any dealer here at Express Auto Auction. Browse our inventory and practice your bid clicking. 👍

Budget: 

How much should or can you spend on car insurance. Don’t overpay for insurance, but don’t skimp either. These factors are holistic. Additional coverage typically comes with higher premiums, so you need to ensure it fits the car’s value, your driving habits, and your financial constraints.

Risk Tolerance: 

If you're risk-averse and want to be fully protected in various scenarios, additional coverage might be appealing.

Additional Car Insurance Options:

Collision Coverage:

This covers damage to your car resulting from collisions with other vehicles or objects.

Comprehensive Coverage:

This covers non-collision-related damage, such as theft, vandalism, weather-related damage, or hitting an animal.

Uninsured/Underinsured Motorist Coverage:

This protects you if you're involved in an accident with a driver who has insufficient or no insurance.

Gap Insurance:

Gap insurance covers the difference between what you owe on your car loan and the car's current value in case of a total loss.

Rental Car Reimbursement:

This covers the cost of renting a replacement vehicle while your car is being repaired after an accident.

Insurance and Auto Auctions

You MUST have the car insured before you can drive it! At Express Auto Auction, you are required to pay for and pick-up your vehicle(s) the next day on Thursday by 4pm (our auctions are every Wednesday) or you will forfeit your deposit.

Keep in mind too, new and nearly new vehicles you buy at auction might be very easily insured. Liability and full coverage won’t be a problem. For the older cars, the ones that don’t run or start, or need more maintenance upfront insurance might not be as easy. Have that expectation in mind when you’re picking out the car to bid on.

You can learn a good amount from the California DMV’s site on insurance requirements.

You can also find more information here. 🔍

Ultimately, the decision on whether extra car insurance is worth it depends on your circumstances and priorities.

To make an informed choice, consider your financial situation, your car's value, your driving habits, and your level of risk tolerance. It can also be helpful to discuss your options with a professional who can provide personalized guidance based on your needs. Our team is always happy to help with any questions, so don’t hesitate to reach out to our team. 😁