Are newer cars cheaper to insure?

Asked by: Prof. Grady Graham Jr.  |  Last update: February 11, 2022
Score: 4.5/5 (73 votes)

Auto insurance rates drop by 3.4% for every year your vehicle ages. An eight-year-old vehicle is approximately 25% cheaper to insure than is a brand new vehicle. For example, a brand new Honda Accord could cost $74 more per month to insure than an eight-year-old Honda Accord.

Is a newer car more expensive to insure?

You may have heard newer cars cost more to insure. However, the cost of car insurance depends on many factors, including the make and model of the vehicle you're insuring and your driving record. These factors may influence the cost of insuring a new car.

Is it cheaper to insure newer or older cars?

Are older cars cheaper to insure? Yes, most older cars are cheaper to insure, especially in terms of comprehensive and collision insurance. Cars lose value as they age, so the potential insurance payouts after an accident drop as well.

Does buying a new car lower your insurance?

How much is insurance for a new car? Usually, getting a new car will increase your rate because it'll be worth more than your old car.

Why is an older car more expensive to insure?

Consider repair and replacement costs: Older vehicles can cost more to insure because they can be more expensive to repair due to hard-to-find parts. Consider how much you'll need to spend to make repairs to your older car. ... If your vehicle is older and not worth much, you may not need these additional coverages.

Are Newer Cars Cheaper to Insure than Older Cars?

42 related questions found

Do older cars have lower insurance?

Do Older Cars Cost More to Insure? Your rates for comprehensive coverage or collision coverage on an older vehicle may be lower than what you'd pay for those same coverages on a newer car that's worth more. ... Older cars are typically worth less, as their value depreciates over time.

Are old cars more reliable than new cars?

According to the scores, newer cars are inherently more reliable than old cars. Of course, that doesn't automatically make new cars better, but it makes the driving experience better. Kia, in particular, was most improved.

How can I lower my car insurance rates?

Follow our other top tips to drive the cost down even further.
  1. Limit your mileage. ...
  2. Pay annually. ...
  3. Improve security. ...
  4. Increase your voluntary excess. ...
  5. Build up your no claims bonus discount. ...
  6. Only pay for what you need. ...
  7. See if it's cheaper to buy add-ons as separate products. ...
  8. Consider your cover type.

How can I get cheaper insurance?

8 Ways to Get the Cheapest Car Insurance Rates Possible
  1. Don't assume any one company is the cheapest. ...
  2. Don't ignore local and regional insurers. ...
  3. Ask about discounts. ...
  4. Work on your credit. ...
  5. Skip comprehensive and collision coverage for an older car. ...
  6. Raise your deductible. ...
  7. Consider usage-based or pay-per-mile insurance.

Why did my car insurance go up when I bought a new car?

Adding vehicles and drivers

If you purchase a more expensive car, your rate is likely to go up as your new ride may be more likely to be stolen and cost more to repair or replace than your previous vehicle.

Is it worth having fully comprehensive insurance on an old car?

This might prompt you to ask: is my comprehensive car insurance premium still worth it? The answer really depends on your wheels, but a good rule of thumb is: until the sum of your annual premium and excess outweigh that of your car, it is probably still in your best interests to keep your comprehensive policy.

Are older cars more expensive to repair?

People are often surprised by how much it costs to keep an older vehicle running, but it is almost always cheaper to repair your car than buy a new one.

At what ages does car insurance go down?

Drivers see their car insurance premiums start to go down around age 20, with a big drop coming around age 25. Rates tend to level out for decades beginning around age 35. Once you're past 65 years old, however, age tends to affect driving capability.

What color car is the most expensive to insure?

Though car color usually will not have an impact on your car insurance rates, white, black, blue, and red cars are usually more expensive to purchase across the board as they are very popular colors. Popular car colors may be more expensive as the demand for them is higher.

Which is a type of insurance to avoid?

Avoid buying insurance that you don't need. Chances are you need life, health, auto, disability, and, perhaps, long-term care insurance. But don't buy into sales arguments that you need other more costly insurance that provides you with coverage only for a limited range of events.

What are 10 easy ways to get cheap car insurance?

Here are some ways in which you can bring down your car insurance premium.
  1. 1) Get 'pay as you drive' insurance. ...
  2. 2) Don't buy all add-on covers. ...
  3. 3) Don't go for too many modifications or upgrades. ...
  4. 4) Avoid small claims. ...
  5. 5) Install antitheft devices in your car. ...
  6. 6) Raise your deductible. ...
  7. 7) Transfer NCB for new car.

Does car engine size affect insurance?

Your vehicle's engine size is one of the factors insurers use to work out the cost of your premium. Vehicles with lower engine capacities are cheaper to insure than high-powered vehicles. The insurance industry uses a system known as 'group rating' to assess the likely insurance costs for different vehicle models.

Do you drive in peak times insurance?

How does driving to work affect my insurance premium? If you use your car to commute to work your premium will be higher, as you are more likely to be driving often and at peak times, and the probability increases of you making make a claim.

Are newer cars lasting longer?

Cars are lasting longer than ever. ... The average age of cars and light trucks on U.S. roads reached an all-time high of 11.8 years in 2018, according to research firm IHS Markit. That's partly due to improvements in reliability – engines are lasting longer as components become more resilient.

Are modern cars built to last?

Yes. Most cars, especially those designed for the American market, will last much beyond 10 years and over 200,000 miles with normal maintenance. There are many variables to the longevity of a vehicle; environment, maintenance, treatment, storage and design use to name several.

Are newer vehicles more reliable?

However, the general consensus seems to be that modern cars don't break down as often as older ones. ... As a result of this improved reliability, people are hanging onto their modern cars longer than before. In 2009, J.D. Power and Associates reported that the average trade-in age of a car in the U.S. is 73 months.

Is car insurance more expensive for over 70s?

"Car insurance can be expensive for drivers once they are over the age of 70. Even though older drivers are often careful and experienced road users, insurers tend to view the over 70s as high risk and push premiums up. One of the best ways to keep costs down is to reduce your mileage and increase your excess.