What’s Cheaper: Insuring Old Cars or New Cars

Auto insurance remains one of the most relevant policies an individual can buy into. This is because there is always uncertainty whenever you hit the road with your vehicle, or even if you have it parked at home. This is why we’ll be taking a close look at the cheapest auto insurance policy based on the age of the vehicle.

Intro

Getting a vehicle on the road is one of the most thrilling experiences for road users. The satisfaction derived from being a car owner can be easily swept away if you don’t have an auto insurance coverage plan.

There are a lot of factors that are put into consideration when an insurance company sells an insurance plan to you. The make of the car, the car’s model and other features that are sometimes closed to some vehicles determine how much the owner or insurer will pay for coverage. The worth of the car is also considered when getting a vehicle insured. Some people prefer getting their cars insured immediately after the purchase. Others prefer buying used cars and getting an insurance policy. But the question still lingers among car users and dealers – which among old or new cars are cheaper when it comes to securing an insurance policy?

So which is cheaper to insure? A new car or an older one?

The answer to this question is actually glaring. Older cars are much cheaper when it comes to getting an insurance policy. An older vehicle is regarded as having inferior value to the newer model and this beats down the premiums for old cars.

It is also fascinating to note that some cars of the same make/model may have different insurance costs if they were manufactured years apart from each other. For instance, a Honda Accord 2004 will be much cheaper to insure than a 2014 model. The decade between the manufacturing years of the two vehicles may result in a 300% decrease in insuring the older vehicle.

One other notable factor that influences the insurance premium for an old or new vehicle is the value of the car. The brand name of a vehicle manufacturer could have an impact on the price of the insurance policy. A newer vehicle with a recognized brand name will be costlier to insure than older vehicles manufactured by a lesser-known brand. But the brand name of a vehicle doesn’t necessarily mean the value of the vehicle will remain sustained. Newer models of existing vehicles are manufactured by some companies on an annual basis. This affects the value of the car that was regarded as the latest model a few months ago. Newer releases of a vehicle’s model may cause the preceding model to lose up to a third of its original value. This doesn’t mean that the insurance premium will reduce, but you may find it tasking to get a good price if you intend to sell the car off much later.

Older cars are mostly sold at a bargain price, and it is a plus to know that the premium for the collector car insurance is also considerably lower. Most old modeled cars today are durable and can still give you some good mileage for your money and save you more in insurance payments. So, if you’re intent on purchasing a vehicle and need a good deal, consider getting an older car. But if you have a weakness for things new and shiny, then you can also go for a newer vehicle.

The cost of repairs

When it comes to repairs, newer vehicles could leave you in a head-scratching moment. This is because most of these new vehicles are designed with state-of-the-art technology that will eventually require you forking out some serious cash for repairs if you don’t have an insurance coverage plan. If you already have an insurance plan for your new vehicle, the policy provider will need to cover all this expenses, meaning you still have to pay more money in premiums.

On the other hand, older cars have the advantage when it comes to the cost of repairs as their parts are readily available and equally very cheap. This promotes the reduction in the insurance premiums required for a much older vehicle.

Safety features

Safety systems installed in a vehicle also determine the insurance policy premiums. Older vehicles have much lesser features when it comes to road safety which causes a reduction in the prices of getting such cars insured.

Newer vehicles on the other hand, have more than enough safety features designed to protect the lives of owners and ensure they have a better experience when handling the steering wheel. Features such as proximity detection, alarms systems, safety lock systems, security cameras and others play different roles in securing the lives of the driver and occupants of a new vehicle. However, insurance companies will take this into consideration when giving out an insurance cover for your vehicle. A newer vehicle with many safety features may get damaged in an accident. Re-installation of these safety features in the vehicle may cost your insurance company thousands of dollars to fix. So there isn’t any guess work here, you’ll have to pay more for insurance.

Wrap-Up

We’ve seen that older cars are much cheaper to insure and can also provide you good services for a long time. This isn’t meant to discourage you from purchasing a new vehicle with an accompanying insurance policy, but you need to have an idea of both sides to make an informed decision.

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