Auto Insurance For Older Cars (2024)

FAQs

What is the best car insurance for older cars? ›

Whether or not car insurance is cheaper for older cars depends on several factors. While new cars may be more expensive to insure due to their higher value, older cars may be costly as well. Although they may have a lower value, older cars may also have expensive parts that could make repairs expensive.

It's usually worth dropping full coverage on an older car if its value is less than a few thousand dollars, as long as there's no loan on it. The more your car depreciates, the less you'll get from the insurance company after an accident or theft.

A Third-Party Car Insurance Policy is mandatory, be it a new or old car. But you can consider buying the Comprehensive Insurance Policy for your old car as it provides all-round coverage for your car.

The only insurance you usually need is liability coverage and, in some states, personal injury protection. Full coverage is often recommended, but it becomes much less valuable financially with an older car.

Progressive Classic Car Insurance by Hagerty can insure a car of any age but has requirements around the vehicle's usage, storage, and more. The common thread among classic car owners is that their older vehicles are worth preserving and may even be collectibles.

Car insurance is the cheapest for drivers between the ages of 35 and 55. Car insurance is very expensive for teens because they have a high risk of accidents, and then it decreases sharply as drivers age into their 20s and develop more reliable driving habits.

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.

At what car value should you drop full coverage? ›

Your vehicle holds a low value: As with collision, consider dropping comprehensive coverage if your vehicle's market value is lower than a few thousand dollars. Figure in your deductible as well and the potential insurance payout may not be worth the price of the coverage.

Therefore, full-coverage car insurance is probably worth it if you are in one of the following situations: Your vehicle is leased or financed. You have a newer vehicle (less than 10 years old) You can't afford to replace your vehicle if it's destroyed in an accident or by an act of nature.

USAA is the cheapest car insurance company for seniors age 65, costing an average of $1,322 a year or $110 a month, according to our analysis. USAA is available only to customers with a military affiliation. Nationwide is the cheapest auto insurer available to all drivers.

While newer cars are typically linked with more expensive insurance policies due to their higher value, policyholders with older vehicles may still see an increase in the cost of their policy as the vehicle ages.

According to Progressive, car insurance companies usually offer lower rates for drivers between 45 to 55 years old, but once a driver turns 75, they should expect to pay more.

Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.

There is no set policy for a new car as opposed to a used car. But your coverage may be different depending on whether you financed the vehicle or purchased it outright—such as the addition of gap insurance, which helps pay off your outstanding car loan if your car is totaled or stolen.