New Car Insurance

The insurance for a car does not depend much on the age of the car, as the damage caused by a used car to any other car or property or people could be as severe as that caused by a new car, and therefore there is no discount for liability coverage or third party insurance for the fact that the car is new or old. However, in a comprehensive car policy, the amount that the company is liable to pay to the car owner in case of theft or damage due to flood or fire will be quite high if it is a new car as compared to a used car. To that extent the new car attracts higher premium in the initial few years when the car has not depreciated enough.