At Ed Thompson Insurance Agency, we want our Omaha, NE, clients to enjoy the auto insurance they need when needed. This blog covers the difference between necessary coverage for a new car and a used vehicle. While you’ll buy the same policy regardless of your vehicle’s age, the coverage types in the policy vary.

What Stays the Same

Every driver in the state of Nebraska must insure their new or used vehicle with liability coverage that meets the minimum coverage requirements. This includes bodily injury and property damage coverages.

What Differs

When you purchase a new car, your lender may require you to carry full coverage, which includes collision and comprehensive coverage. That ensures that if the auto gets totaled or stolen, your insurance policy will fully cover what you owe the bank for the loan. Once you pay off your loan, you may want to keep the full coverage because you would have to pay for a new vehicle out of pocket without it.

When you own a used vehicle, an insurer typically suggests comparing the cost of collision and comprehensive coverage with the used auto’s replacement value. If you could replace the car for the annual premiums and deductible cost, buying full coverage doesn’t make sense. If a vehicle replacement costs more than the premiums and deductible, then accept the coverage and save money if anything happens to the vehicle.

Contact Ed Thompson Insurance Agency Today

Contact Ed Thompson Insurance Agency today to update your auto insurance. Don’t leave your Omaha, NE, driveway without the appropriate auto coverage.