Is insurance more or less on older cars?
An older vehicle is cheaper to insure mainly because older cars are less valuable, so an insurer won’t have to pay out as much in the event of a total loss. Plus, once the car falls below a certain value, comprehensive and collision coverages to protect the car itself will actually cost more than they’re worth.
Is it true that the newer the car the cheaper the insurance?
Auto insurance rates drop by 3.4% for every year your vehicle ages. An eight-year-old vehicle is approximately 25% cheaper to insure than is a brand new vehicle. For example, a brand new Honda Accord could cost $74 more per month to insure than an eight-year-old Honda Accord.
Why is insurance more expensive on old cars?
Older Cars Are Less Expensive to Repair
That is because newer model cars tend to be made of more expensive materials, which is the reason why they cost more in general. Since older cars cost less to fix, insurers factor those lower repair prices into their premiums.