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Older cars are less expensive to insure than newer cars, as older cars are cheaper to replace, but the exact cost of insuring an older car depends on a variety of factors, including the types of insurance and the coverage levels that a driver selects. The driver’s age, driving history and claims record are also more likely to have a significant influence on auto insurance rates than the age of the car.
There are exceptions to the rule that older cars are more affordable to insure, however, including some foreign-made and classic cars, which may have expensive parts and be difficult to replace. Insurance companies don’t normally offer discounts for older cars, either.
You should pay special attention to the type of coverage you are paying for, if you are insuring an older vehicle. Allstate and the Insurance Informative Institute both say that if your annual premium is more than 10% of your car’s value, you might consider dropping the comprehensive and collision coverage on it.
You should avoid paying more for coverage than the vehicle is worth. However, you might not be able to drop coverage if your car is leased or financed. Insurance requirements vary by state, too, so it’s important to make sure you have at least the minimum amount of coverage needed for your situation, even if your car is older.
The best way to understand the cost of insuring an older car in your specific case is to get quotes from multiple insurance companies.
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.
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No, gap insurance will not cover a totaled car without insurance unless the gap policy specifically allows it, which is highly unlikely. In most cases, you cannot purchase gap insurance or file a gap insurance claim if you don’t have collision or comprehensive coverage.
If you purchased gap insurance from a dealer but have allowed your car insurance to lapse, you are likely violating your contract. Gap insurance is really insurance for your loan...
read full answerWhat are the top 10 cheapest states for car insurance?
The cheapest states for car insurance are Iowa, Vermont and Nebraska, according to WalletHub's Cheap Car Insurance Study. They are the cheapest states for auto insurance in large part because they have low population density and relatively few uninsured motorists. In contrast, New York, Florida and New Jersey are the most expensive states for car insurance.
Population and uninsured motorists are the two main reasons for variations in policy costs from state to state. After all, fewer people...
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