Milvionne Chery Copeland, Writer
@milvionne_copeland
Yes, newer cars are more expensive to insure than older cars since newer cars tend to be worth more and cost more to repair. Plus, if a new car is financed, you may be required by your lender to carry comprehensive and collision coverage, making your insurance policy more expensive.
On average, the cost of car insurance goes down by about 3% to 4% every year your car ages, according to reports online. Even though new cars are typically more expensive to insure than older cars, the age of a car is not the only factor that determines how much you will pay for insurance. Insurers also look at things like your driving history and your age.
Factors That Affect Insurance Rates for a New Car
- Your age, marital status, and gender
- Your driving history
- Your location
- Your insurance claims history
- Whether you had a lapse in insurance
- The number of miles you drive in a year
- The coverage, deductibles and limits you choose on your policy
- The year, make, and model of the car
If you are looking for a new car, there are certain technologies that can lower the price of insurance, including anti-theft devices and safety features like collision warnings, automatic braking, and lane departure warnings. Many insurers offer discounts if your vehicle is equipped with these things.
To learn more, check out WalletHub’s guides on the factors that affect car insurance and the cheapest cars to insure.
People also ask
Are older cars cheaper to insure?
Yes, older cars are cheaper to insure than newer cars in most cases because older cars are less valuable, so an insurer won’t have to pay out as much in the event of a total loss. Plus, once an old car falls below a certain value, you may not have to pay for comprehensive and collision insurance anymore.
But a car’s age actually has less of an impact on insurance premiums than its make...
read full answer by Merrill Burchell, Car Insurance WriterDid we answer your question?
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