Are Older Cars Cheaper to Insure?

If you are interested in finding a way to save money on auto insurance, you may want to consider buying an older car. These cars can typically be insured for less than a new car. The value of these cars is usually less than a new car which can lower the premium amount on your policy.


One of the reasons that older cars can usually be insured for less than a new car is because of the value. The insurance company has to charge a premium in accordance with the amount of how much it would cost to replace a car. With an older car, it has depreciated in value rapidly which means that it is not worth as much as a new car. The insurance company can afford to charge less in premiums.

Liability Only

Many owners of older car opt to get liability-only coverage. With car insurance, you are only required to have liability coverage and you can opt out of collision and comprehensive coverage. If you no longer owe any money on the car and the value is very low, it may not make sense to pay a premium to have your car replaced if you are in a wreck. By taking out the collision and competence of coverage, you can get your rates down much lower.

Classic Cars

The one exception to this rule is classic cars. Classic cars are old cars that are considered to be very valuable. These makes typically have a very limited number of cars available in the market. If one of these cars is damaged, it can be very difficult to repair it and potentially impossible to replace. For this type of insurance, you should expect to pay more than you would with a regular car insurance policy.

Other Factors

Other factors also go into how cheap your car insurance rates are. The insurance company will look at your credit score to determine what rates they should charge. They will also evaluate your driving record to determine if you have had any wrecks or a large amount of traffic violations. These factors can significantly influence your premium rates. If you have not had any wrecks or traffic tickets, you should be able to get lower rates than someone who has.


To determine if getting an old car can help you save on insurance, it helps to get some quotes from insurance agents. While you could potentially save by getting an older car, you may not necessarily save a large amount of money. Checking with an insurance agent can give you an accurate comparison.


About the Author

Luke Arthur has been writing professionally since 2004 on a number of different subjects. In addition to writing informative articles, he published a book, "Modern Day Parables," in 2008. Arthur holds a Bachelor of Science in business from Missouri State University.