A brand new Merc or one that has been used by someone else before. Buying a car whether new or old, you cannot escape auto insurance.

I know that getting auto insurance is the least priority when you buy a used car. The reason is that the car is old and probably costs you a lot less than a new one, if anything happens to it you can easily replace it.

But then don’t forget that any car you drive on road has potential of causing an accident. So in case your old car is involved in an accident and you are responsible for the crash, you will have to pay for all the physical injuries to others and also cover any property damage to their assets and possessions. If you don’t carry minimum insurance as mandated by the State, then the Court may order to sell your assets and cover the expenses.

So in any circumstance you should always have insurance. As always you can customize your insurance policy according to your needs.

When it comes to buying optional coverages like collision and comprehension, it’s your call. Both are used to cover any damage to your car and pay for expenses that are caused in repairing and replacing your car. When the cost of repairing your old car is more than buying a new car altogether, it doesn’t make much sense to buy these expensive coverages. Also, for older cars the total loss caused by any theft or accident would also be lower than for a newer car, so you can think of dropping the coverage.

You can also lower your insurance by going for higher deductibles. When you buy a used car it may already have few negligible damages and is certainly not better than a new car. As an owner you may not always want to repair all small damage and so you can go for higher deductibles and claim for major accidents only. When you do this keep in mind that the insurer won’t come for your rescue for smaller damages and you will have to pay for the expenses. So decide after thoroughly thinking its pros and cons. » Read more: Old or New Car – Whichever You Buy, Auto Insurance Is a Must for You