Yes, age of car affects insurance because insurers take specific vehicle details into account when determining car insurance prices. For instance, a 10-year-old version of the same car will cost less to insure than the brand-new model, since it is less valuable.
Similarly, valuable cars, high-performance models, and cars that are more likely to be stolen will usually cost more to insure. Cars with high repair costs, added features, and poor safety records can also raise premiums.
Since your car's year, make, and model will affect your insurance premium, it's important to check quotes before you purchase a new car so that you'll know how much to budget for insurance. For more information, check out WalletHub's guides to the factors that affect car insurance rates and the cheapest cars to insure.
This answer was first published on 07/24/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
People also ask
How is car insurance calculated?
Car insurance is calculated based on factors that indicate how likely a driver is to file a claim, including age, driving history, car type and mileage. Insurance companies do not release the specific algorithms they use to calculate prices, meaning that each insurer will offer a slightly different rate to the same driver.
Since each company calculates premiums using its own individual system, it’s important to get multiple quotes while shopping for insurance. Checking...
How much does it cost to insure an old car?
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...
Does car color affect insurance rates?
No, car color does not affect insurance rates. Whether your car is yellow, black, silver, or any other color, your car insurance will not be affected as car insurance companies don’t even know the color of the car you’re driving. Insurers know your vehicle identification number (VIN), but the color isn’t included in VIN information. Your vehicle’s make, model, year, body type, engine size, sticker price, average repair costs, overall safety record, and risk of...
