Why is my old car so expensive to insure?
Asked by: Bernice Kassulke | Last update: January 24, 2026Score: 4.4/5 (68 votes)
Why is my car insurance so high on an old car?
That's one major reason your insurance company might charge a higher premium anticipating higher repair costs in the event of an accident. Older cars also have fewer anti-theft features making them more likely to be stolen.
Is it more expensive to insure an old 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.
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.
Which old cars are cheapest to insure?
Anything low powered, small, and rwd. Old toyotas, datsuns, mazdas. Lowered mini trucks like s10's or muscle trucks like chevy c10's. Really depends on what you consider fun. I would say older american cars, but the big engine displacement is likely to raise insurance fees...
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What is considered an old car for insurance?
If you are a California driver, then being at least 25 years old is one of the major requirements for the car to be considered “historic” by the state.
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?
Car insurance coverage required in most states
Drivers in most states are required to carry liability coverage, regardless of the age of the car. Each state sets minimum coverage limits that you must purchase to insure your vehicle.
At what age does car insurance stop being expensive?
States Where Age Does Not Affect Rates
In the following states, insurance companies cannot take age into account when calculating insurance premiums: California.
Should I keep full coverage on a 10 year old car after?
Full coverage car insurance is likely to be a poor investment for vehicles that are more than 10 years old. After this period, the annual cost of insurance represents 46% of the value of older-model vehicles. After an at-fault crash, rates are very likely to exceed the value of vehicles that are 15 or more years old.
What is the best insurance for old cars?
We've determined Hagerty, American Collectors, Grundy, Chubb and Safeco are among the best insurance companies for valuable older vehicles.
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.
At what point should you drop full coverage 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.
Why does my car insurance keep going up with no accidents?
Car insurance rates can sometimes increase unexpectedly, even without being involved in an accident. This can be due to different factors, such as changes in the insurance company's rates, adjustments to your policy, or even external factors like inflation or rising repair costs.
Which insurance is best for a 10 year old car?
You can get covered in such scenarios by purchasing comprehensive car insurance for your old car. This cover will compensate for repairs or replacements arising from unforeseen incidents like accidents, collisions, fire, calamities, etc.
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.
What is the most expensive age to get car insurance?
Key takeaways. 18-year-old drivers on their own policy pay the highest car insurance premiums out of the age groups Bankrate analyzed. The most significant difference in premiums by gender occurs at age 18. On average, 18-year-old males cost 9 percent less to insure than their female counterparts.
Why is my older car more expensive to insure?
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. Additionally, older cars may not have as many safety features as newer models.
What age are you kicked off car insurance?
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.
Can you insure a 25 year old car?
Generally, to get insurance for classic, collector, vintage, and antique cars or trucks, your vehicle needs to be parked in a safe place, used as an extra car and not your daily vehicle, and kept in good working condition.
Is it better to have collision or comprehensive?
If your car is damaged in a road collision with another car or object and you're at fault, only your collision coverage can help pay to repair it. Only comprehensive coverage covers losses caused by contact with animals, civil disturbances, fires, natural disasters, theft, and vandalism.
Do I need full coverage on a 10 year old car?
Aside from classic cars, vehicles generally lose value as they grow older. If the cost of insuring your vehicle is more than the value of the vehicle itself, you may no longer want or need full coverage.
Is it worth having 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.