how much would my insurance rate differ if i bought a car with cash or financed?

Question

I am 16 years old and the quote i received for buying the car in cash was about 1200 a year. how much more would my insurance be if i financed ?

Answer 1

When I get insurance (I am over 16) the rate is not any different whether the car is paid for or whether I finance it.

The only difference in rate is usually full coverage and liability coverage. LIABILITY: For example, my car is a little older so I save money by only having liability; this means my insurance pays if I hit anyone and it is my fault. However my car is not covered. If it accidentally hit MY mail box with MY car , it is not covered because there is no liability - it is my car and my fault, I haven't hurt anyone else. If someone hits me in a parking lot and takes off and I don't have anyway to find him or her, my insurance won't pay for the damage. FULL COVERAGE. This is comprehensive and liability. If an accident if my fault the insurance will pay for my car to get fixed and the other guys too. It will pay if someone hits my car in a parking lot and takes off. This is a good thing to have if you have a newer car. However if your car is financed the bank or credit union requires you to have the comprehensive insurance. This is because if you wreck your car and there is no insurance, they don't have anything to take back if you don't pay the car loan.

This would be the only difference in insurance rates - the two types of insurance. If you plan on getting the full coverage anyway, the insurance rate will be the same no matter whether your car is financed or not.

Some states have "no fault" insurance and i do not know how that works so if you live in a "no fault" state then perhaps some of my information will not pertain to you.

Answer 2

You can get quotes in just a few minutes at - SALESQUOTES.INFO-

RE How much would my insurance rate differ if i bought a car with cash or financed?

I am 16 years old and the quote i received for buying the car in cash was about 1200 a year. how much more would my insurance be if i financed ?

Answer 3

Buy it outright. "what if it breaks? " Then you'll need to mend it, using some of the money you're not shelling out every month on finance. "what if I get a nice, 5 year old car?" What makes you think a 5 year old car won't break? Difference is you'll have less available cash for repairs if you're paying HP on it. And don't think a warranty will help you much either. At 5 years old the bills will be for wear & tear items like clutches, exhausts, cambelt replacement etc which aren't covered by a warranty. Most of which ironically will probably already have been done on the 7-8 year old £1500 banger. If you're on a tight budget, finance is fine for a new car or one only a few months old, but buying a 5 year old car on finance isn't clever.

Answer 4

I suggest you to try this site where onel can compare quotes from the best companies: http://INSURECOMPAREQUOTES.US/index.html?src=2YAOIA24oto0RWt

RE :How much would my insurance rate differ if i bought a car with cash or financed?
I am 16 years old and the quote i received for buying the car in cash was about 1200 a year. how much more would my insurance be if i financed ?
Follow 10 answers

Answer 5

It should not matter if you paid cash or financed it.

If you finance your car, the lenders name would be listed on the policy with your vehicle. Then if you have an insurable loss to the vehicle, the insurance company would include the banks name on any payment for the vehicle. That is the only difference.

But, it would not affect the rate, or cost, of insurance.

Answer 6

None, there isn't any insurance charge based on whether you paid cash or borrowed money for the car. The BIG difference, is if you borrow, you have to carry full coverage. I'd bet at 16, that $1200 is for minimum liability only.

Talk to the agent who gave you the $1200 quote.

Answer 7

the car dealer tried to sell you insurance ? assume this is car insurance ? i would just buy the car from them and get car insurance from allstate , state farm., etc.

if this is insurance for credit / life , then you may want to think about it . most people do not buy it. especially if you have the money to pay off the car loan , if a rainy day does come. if you lose job, get sick / cant work or die the insurance makes the payments for you. good option, but it's kind of expensive. our credit u nion sells it and a lot of people are taking it out because 1/3 of our work force had been reduced.

Answer 8

For free insurance quotes

Answer 9

i don't think it matters. However these companies can make up their own policy provisions.

Answer 10

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