by Fadi S, Illinois auto insurance specialist in Chicago

Shopping for Cheap Cars Up During Tax Season

The tax season for 2012 is coming and shopping for cars go up during the months of February and March every year. This is the time when many people get their tax income refunds most of which are used for major purchases such as buying vehicles. Shopping for cars is a tedious task, and can be challenging too, especially if the goal was to getting cheap cars. Many people spend days and weeks, perhaps months shopping for a car, as they want to get the best deals on cheap cars. When shopping for vehicles most people take in consideration the cost of vehicle insurance that they need to pay to make sure that the vehicle is properly covered and that they comply with the insurance laws.
Liability insurance for Cheap Cars in Chicago Illinois
This article is not about how to locate cheap vehicles online or from individual sellers in the market place and is not about any tips of how to choose cheap used cars. There is too much information available these days online about how to examine used cars before buying them. Although the number of used car dealers in Illinois continues to plummet the number of individual  sellers and dealers offering cheap cars online is going on the rise.

Liability Insurance for Cheap Cars

The Chicago marketplace does not show any significant difference in the cot of liability insurance for cheap cars in Chicago Illinois. Regardless of the year, make and model of the car you purchase your  auto liability cost is the same with the vast majority of insurers. This is true because liability insurance rates in Chicago Illinois are  based on ZIP code, age, marital status, gender, and prior driving records of the applicant. Some insurers will also check the credit of the applicant before they issue a firm liability car insurance quote.

However there are auto insurance companies in Chicago (minority) that set their liability car insurance rates based on the symbols of the vehicles, not the values of the vehicles. When using the symbol system in rating, liability vehicle insurance rates may go up or down based on the symbol of the vehicle. Vehicle symbol is an indicator of risk and claim factors in connection with that specific auto year, make, and model.

Full Coverage Insurance for Cheap Cars

It is not recommended to get full coverage insurance for cheap cars. For many insurers, if the cost of repair to a damaged vehicle is in the vicinity  of 80% of the actual cash value of that vehicle then the company my just total the vehicle and pay the value. Many insurers will take into account the mileage of the damaged vehicle, prior damage including rust, and purchase price before they decide the final value to be paid to the customer.

In some instances the annual cost of comprehensive and collision insurance on a cheap vehicle plus the deductible (which must be paid by the insured if there is a claim) is more than the actual cash value of the totaled vehicle. For that reason, getting comprehensive and collision coverage on older or cheap vehicles is not recommended, unless it is required by a lienholder.
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