Is it cheaper to insure a used car or new car?
Asked by: Mrs. Cheyenne Pollich IV | Last update: January 15, 2026Score: 4.6/5 (68 votes)
At what age is car insurance the cheapest?
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.
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.
Does a new car raise your insurance?
Usually, getting a new car will increase your rate because it'll be worth more than your old car. Note that other factors may impact your car insurance rate if you're starting a brand-new auto insurance policy. But even if your rate increases, you may be eligible for a few car insurance discounts.
What kind of car is the cheapest to insure?
What cars have the lowest insurance rates? Typically, compact SUVs with high safety ratings and low MSRP have the lowest average insurance rates. Vehicles like the Subaru Outback, Honda CR-V and Toyota RAV4 all fit this model and have some of the lowest average premiums out of all the vehicles Bankrate reviewed.
DO NOT BUY THESE CHEAP CARS
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.
Is it cheaper to insure a new or used car?
Insurance is usually cheaper for used vehicles because it doesn't cost as much to repair and replace them as new cars. However, factors other than your vehicle's age, such as your car's make, model and safety technology, can impact your premium, so used car rates aren't always less expensive.
Why did my insurance go up when I bought a new car?
When insuring a car, a major factor that affects cost is the vehicle's value. New cars generally have higher values so insurers consider this when determining premiums. Additionally, new cars can experience fast depreciation.
How much is insurance for a used car?
How much does insurance cost for a used car? The nationwide average annual car insurance policy for full coverage on a used car costs $1,867 yearly or $156 a month. Used car insurance rates depend on several factors, such as the make and model, where you live and your credit score.
When not to use car insurance?
When the Claim Amount Is the Same or Less than the Deductible. If the claim amount equals or is less than the deductible, there's not much sense in filing a claim. “Most car insurance policies have a deductible in place which you have to pay before their coverage kicks in,” says Ross.
At what age does auto insurance typically decrease Why?
The reason rates tend to go down at age 25 is that younger drivers are statistically more likely to cause an accident and file an insurance claim.
When should you drop full coverage insurance on your car?
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.
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.
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.
At what age does car insurance go up for seniors?
That said, based on Progressive's data on how age impact insurance rates, car insurance for seniors typically only starts increasing at age 75+. Even then, the average 75+ premium is still lower than premiums for the 45–49 range.
Who normally has the cheapest car insurance?
Geico, Nationwide and Travelers are among the least expensive for car insurance. Americans are paying a lot for car insurance these days: Average annual rates for a full coverage policy are up to $2,638 per year, while minimum coverage averages $767 per year.
How much does State Farm charge for car insurance?
What is the average cost of State Farm car insurance? The national average for State Farm auto insurance is $119 per month for full coverage and $54 per month for liability-only insurance.
Is it financially better to buy a new or used car?
Used cars are typically more affordable.
That's despite the loan rates being higher for used vehicles (11.35%) compared to those for new cars (7.03%). If a monthly payment is a deciding factor for you, a used car might be the better choice. Plus, you can always shop around for a lower rate.
Why does it cost more to insure a newer car?
Since new vehicles have a higher initial value, they have higher car insurance premiums, but because of the rapid depreciation, these premiums may also decrease over time. Full coverage car insurance costs for new cars tend to be more expensive compared to used cars due to their higher value.
How long do I have to get insurance on a used car?
You typically have at least a week after to purchase used car insurance. Some states and insurance companies give drivers up to 30 days to buy coverage, but the longer you wait, the riskier it becomes.
At what age is car insurance cheapest?
Both male and female drivers see the biggest drop in average annual car insurance premiums between the ages of 18 and 19. This is because younger drivers are seen by most auto insurance companies as riskier to insure due to their overall inexperience behind the wheel.
At what point is full coverage not worth it?
If Your Car Has Retained Much of Its Value
If the cost of car repairs exceeds the value of your car, insurance companies will consider it totaled. Instead of paying for repairs, you'll just receive a check. If your car is only worth a few thousand dollars, a full coverage premium might not be worth it.
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.