Auction enthusiasts may require more extensive car insurance

Mozo

Wednesday 22 June 2011

Motorists who like to pick up bargains at vehicle auctions may be in greater need of substantial car insurance than those who purchase directly from dealers.

Buying cars at auctions can be risky.

A study conducted by Your Money Magazine has indicated that savvy drivers can make average savings of ten per cent by snapping up a model at an auction.

However, this may not prove to be a cost-effective option in the long-term, as buyers do not benefit from warranty periods.

This may heighten the need for good car insurance policies, as any problems that occur will have to be dealt with by the new owner, whereas those who go through a dealership can send the car back if an early fault develops.

Managing editor at the publication Jackie Pearson said that it is wise to research the specific reasons behind a car being put up for auction before making a purchase.

Last week, the Sydney Morning Herald reported that motorists in Victoria have amassed fines worth $61 million for breaching road regulations so far this year.

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