What insurance should you carry on an older car?

You should carry at least your state’s minimum required insurance on an older car. If you finance your car, your lender or lessor may require you to have comprehensive and collision insurance in addition to your state’s minimum coverage. Other types of insurance are optional, but having them offers protection from certain risks and helps with repairing or replacing your car if you can’t afford it out of pocket.

Types of Insurance You Should Consider Carrying on an Older Car

• Liability Insurance: Liability insurance is mandatory in almost every state, regardless of your car’s age.
• Collision Insurance: Collision insurance is mostly required for financed cars, but it can be useful for older cars that are often driven in areas with heavy traffic or road construction, where the risk of hitting another car or a stationary object is high. This type of policy helps repair or replace your car after an accident, regardless of fault.
• Comprehensive Insurance: Comprehensive insurance is also mostly mandatory for financed cars. Comprehensive coverage could be added to your older vehicle to protect it from non-collision incidents like theft, vandalism, and natural disasters, especially if you can’t afford to repair or replace your car after an incident.
• Classic Car Insurance: If your older car is at least 10 years old and has historic or collectible value, it may qualify for classic car coverage. Classic car insurance tends to be cheaper than standard car insurance.
• Emergency Roadside Assistance: Emergency roadside assistance is an extra feature that many insurers offer. Emergency services like tows and battery jumps become more essential the older your car becomes.
• Personal Injury Protection/Medical Payments Coverage: PIP insurance should be added to your older car if you live in one of the 12 states that require it, and MedPay is required for all cars registered in Maine or New Hampshire. Even if these insurance policies are optional in your state, adding one of them can cover medical expenses from an accident for you and your passengers. PIP also includes lost wages and funeral costs – things health insurance may not cover.
• Uninsured/Underinsured Motorist Insurance: You should carry uninsured motorist coverage(UM) or underinsured motorist coverage(UIM) for an older vehicle if you live in one of the 20 states that require UM insurance or one of the 14 that require UIM insurance. These types of coverage should also be carried if you live in a state with a high number of uninsured drivers, your state’s minimum liability insurance requirement is low, or your older car is still fairly expensive.

To learn more, check out WalletHub’s guides on car insurance for used cars and how much car insurance you need.