Do I need to insure my old car?
Asked by: Effie Kilback | Last update: July 7, 2025Score: 4.6/5 (64 votes)
Do old cars require insurance?
Do I need insurance on my classic car? In short, yes. Auto insurance is mandated in all states except New Hampshire (New Hampshire still requires financial responsibility), so you'll need a minimum of liability coverage if you plan on taking your classic or collector car on the road.
Do I need to insure a car that isn't being driven?
Do you need insurance for a car in storage? Legally, you don't need insurance coverage for a car that's not being driven and is in storage. However, if the vehicle gets stolen, vandalized, or damaged in an accident or weather-related event, you'll be responsible for any resulting expenses if you don't carry insurance.
At what point is car insurance not worth it?
If your vehicle is paid off, there are only a few instances that justify dropping collision coverage: Your vehicle's value is less than a few thousand dollars: If your car holds minimal value, collision coverage may not be worth carrying. This is especially true when a large car insurance deductible is involved.
Do I have to cancel my old car insurance if I switch?
Your new insurance company can provide proof of insurance to your old company if necessary, but they generally aren't authorized to cancel a policy with another insurer on your behalf. After you purchase a new policy, you should immediately contact your former insurer and cancel your old policy.
Don't Overspend - Full Coverage on an Older Car
Should I cancel my car insurance if I don't have a car?
Non-owner car insurance can provide liability coverage in the event of an accident. You should still have insurance coverage if you're a licensed driver who regularly borrows or rents vehicles. Not all companies offer non-owner insurance policies, so you'll have to shop around.
What happens to insurance when you switch cars?
Most auto insurance policies have a built-in grace period that lets you drive your new car off the lot with the same level of coverage you had on your previous vehicle. Typical policy grace periods are between 1 week to 30-days1. After that, you'll need to add your new car to your policy to be covered.
When should you drop full coverage insurance on your vehicle?
For example, you might want to drop comprehensive coverage if: You park your car in the garage and protect it from animals, falling objects, and severe weather. You plan to replace your car next time it needs big repairs. Your car is worth less than the deductible on your comprehensive coverage.
Is it cheaper to insure an older car?
In general, auto insurance for older cars may be cheaper than insuring newer vehicles of the same make and model if the used car is cheaper to repair or replace. A car depreciates in value over time, which lowers the maximum amount an insurance company would have to pay in the event of an accident.
When should I stop car insurance?
Reasons to cancel your auto insurance
You no longer drive. You're switching insurance companies. You're covered under someone else's policy. You're moving out of the country.
How long can you go without car insurance?
It is a crime to drive almost anywhere without car insurance coverage, even for a minute or just down the street. So, how long can you be without car insurance? If you're driving, you can't. Anytime you get behind the wheel as a licensed driver, you need insurance coverage or you'll risk incurring major consequences.
Can you pause car insurance if not driving?
You may be able to pause your auto insurance if you're not going to drive your car for a certain period of time. However, you may be unable to temporarily give up all of your coverage, depending on your state's laws, your insurer's rules and your auto lender's requirements.
Do I need insurance to drive my parents' car?
Most insurers cover someone else driving the policyholder's car with their permission once in a while. But, if you're going to start driving one of your parent's cars regularly, you'll need to be added or named on their auto insurance. You can't legally drive your parents' car without any insurance at all, either.
Is it worth having full coverage on an old car?
It's usually worth dropping full coverage on an older car if its value is less than a few thousand dollars, as long as there's no loan on it. The more your car depreciates, the less you'll get from the insurance company after an accident or theft.
Is a 20 year old car a classic?
For insurance and registration purposes, the age of a classic car, in most cases, is at least 20 years old but not more than 40 years old. If you are going to register it (and insure it) as a classic, it should have been kept to its original design and specifications.
Is it harder to insure older cars?
Because older vehicles are worth less, your insurance company would have to pay less to replace your vehicle if you file a claim. As a result, insurance premiums are generally lower for older cars. One of the largest periods of depreciation is the first year of a car's life.
Can a car be too old to insure?
In general, you will need to meet your state's minimum insurance requirements. Optionally, both collision and comprehensive coverage can offer benefits, even for older cars.
Is a 15 year old car too old?
Cars 15-20 years old are nearing the end of their service lives. While they're the cheapest to buy, unexpected and costly repairs can upend the lower initial cost.
Which old cars are cheapest to insure?
- Škoda Citigo.
- Fiat 500.
- SEAT Ibiza.
- Volkswagen Polo.
- Toyota Auris.
- Renault Captur.
- Volkswagen e-up!
- Ford Fiesta.
Is it good to keep full coverage on a paid-off car?
Risk Tolerance: Full coverage can provide peace of mind by protecting your car from various risks, including accidents, theft, and weather damage. If you prefer the extra security, keeping full coverage might be worth it, even after the car is paid off.
At what age should your car insurance go down?
Experienced drivers are less likely to have accident claims, which means they cost less to insure. At Progressive, the average premium per driver tends to decrease significantly from 19-34 and then stabilize or decrease slightly from 34-75. At age 75, the average premium begins trending upward.
When should you not go through car insurance?
You accidentally cause minimal damage to your own car, like backing into a pole or mailbox. No, don't bother contacting your insurer if you don't have collision coverage or if the damage is less than your collision deductible.
What is the grace period for car insurance lapse?
Car Insurance Lapse Grace Period
If you missed the due date on your monthly payment, you typically have a few days to pay your bill. This is known as a car insurance lapse grace period, and it typically lasts between 10 to 20 days depending on where you live.
Can you keep insurance on a car you sold?
Can I keep my insurance if I sell my car? You can keep your car insurance after selling your car, but you'll need to make some adjustments. If you're buying or bought a new car, you can easily add it to your current policy.