With the vehicle scrappage scheme only applying to drivers trading in cars that are over 10 years old, many cash-strapped buyers are looking to second hand cars instead. However, how can you find cheap car insurance for a used car?

Research from Sainsbury’s Finance has discovered that 10 per cent of adults in Great Britain plan to buy a second hand car in the six months leading up to August 2009 spending an average of £4,487 on each. Used cars are typically less expensive to insure than new cars because the older the car is the less likely it is to be driven at high speeds and the less desirable it is to thieves and vandals.

However, used cars are popular among joy-riders and opportunist thieves looking for an easy catch. This can push car insurance costs upwards.

How to find a cheap second hand car to insure

If you’re worried about how much a used car will cost you every month then it’s best to factor in insurance costs before you buy.

Visit the Association of British Insurers database which ranks every vehicle into a car insurance group. The higher the group, the higher the premiums with cars ranked based on a variety of factors such as how difficult their parts are to replace, how much repairs typically cost and so on. The groups are ranked from 1-20 although this will rise to 1-50 from December 2009.

Generally cars with smaller engines and fewer modifications fit into lower car insurance groups so consider these factors when shopping around. (more…)