Does the age of your car affect insurance?
Asked by: Johathan Donnelly | Last update: May 24, 2025Score: 4.3/5 (71 votes)
Does the age of a car matter for insurance?
Yes, age of car affects insurance because insurers take specific vehicle details into account when determining car insurance prices. For instance, a 10-year-old version of the same car will cost less to insure than the brand-new model, since it is less valuable.
Will my insurance go down if I get an older car?
The price of car insurance generally does go down as a car gets older. This is because older cars are typically worth less than new cars, so the cost to repair or replace them in the event of an accident is lower.
Does the year of your car affect insurance?
Yes, the year of a car model matters for insurance because manufacturers change car models from year to year. Newer model years may have more safety features, but they're also more expensive, so it can be hard to predict exactly how model year might affect your insurance rate.
Is my car insurance high because of my age?
States Where Age Does Not Affect Rates
In California, Hawaii, and Massachusetts, age won't have a direct effect on how much you pay for car insurance. Other factors will still have an impact, though. Your driving record, credit score, and marital status can all affect your final premium.
How Do Age & Gender Affect Auto Insurance Costs? : Auto Insurance
What age is most expensive to insure?
As a result, car insurance companies view young drivers as the most risky to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.
At what age do car insurance rates drop?
The biggest drop is typically from 18 to 19, when the average rate drops by around $1,595. Car insurance typically drops as you grow older, when you drive safely for three to five years following an accident or citation, and when you switch to a cheaper company.
Is an older car cheaper to insure?
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.
Does the year of the car matter?
When considering the age of a car, it is also important to keep safety features in mind. Modern safety features won't be available in many older models. If safety is your priority, you may want to consider 2012 models or newer because that was the year the government mandated electronic stability control for all cars.
Can you get full coverage on a 20 year old car?
Yes. Full coverage is available for older cars. However, if your older car has a low market value, you won't get much from the insurance company if it's totaled or stolen. This is the main reason to drop full coverage for an older car with a low resale value.
At what point is full coverage not worth it?
Paying for comprehensive and collision — the coverages that many people mean when they say "full coverage" — may not be worth it if your car's value is minimal and your policy includes a high deductible. Usually, you have to have comprehensive and collision on a financed car because most lenders require it.
Why is my insurance so high on an old car?
Although they may have a lower value, older cars may also have expensive parts that could make repairs expensive. The older a car gets, the harder it may be to source these parts for repair, which can also drive up the cost of car insurance for older cars.
At what age can you no longer be on your parents car insurance?
But how long can you stay on your parent's policy? Unlike health insurance, which can have an age limit of 26, you can stay on your parent's car insurance policy indefinitely if you live in the same house. Now, if you move out, you'll probably need your own.
Which gender pays more for car insurance?
On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger. When they are older, women start to pay slightly higher rates.
Why is my car insurance so high with a clean record?
The simple answer is that more factors go into the cost of car insurance than just your driving record. Your age, credit score, location, and more can all potentially influence what you end up paying for car insurance coverage, no matter how clean your driving record is.
Which is more important, age or mileage?
But remember that a vehicle with high mileage is more likely to need repairs, so you'll need to factor that into the cost. Age may be more important than mileage if you have a larger budget. A newer car is less likely to need repairs and will likely have features that are not available on older models.
In what year does a car lose the most value?
The first year faces the most significant depreciation hit to the car's market value, with most vehicles losing about 20% or more of their original value. The loss continues to decline from there. Cars often shed about 60% of their original purchase price within the first five years.
What is high mileage for a car?
Often, 100,000 miles is considered a cut-off point for used cars because older vehicles often start requiring more expensive and frequent maintenance when mileage exceeds 100,000.
Does car insurance go down with age of car?
One of the largest factors in your premium is also your vehicle itself—particularly the age of the car. While it might not seem logical since the value of your car is not increasing as it gets older, your insurance premium can continue to go up.
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.
What is the best insurance company for older cars?
- Best for availability: American Collectors.
- Best for restored vehicles: Hagerty.
- Best for regular use: Safeco.
- Best for immediate coverage: Grundy.
- Best for high-value vehicles: Chubb.
Does credit score affect car insurance?
How credit-based insurance scores work. Most U.S. insurance companies use credit-based insurance scores along with your driving history, claims history and many other factors to establish eligibility for payment plans and to help determine insurance rates. Again, except in California, Hawaii, and Massachusetts.
How to get car insurance to go down?
- Qualify for insurance discounts. ...
- Increase your deductible. ...
- Reduce your coverage. ...
- Compare rates. ...
- Try usage-based insurance. ...
- Take a defensive driving course. ...
- Get a car that's cheaper to insure.
Why is my car insurance so high Progressive?
If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.