Laura Berry is a former State Farm insurance producer and insurance expert.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 19, 2021

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Important facts to know...

  • Newer cars are often more expensive to insure because of their value
  • Many new cars have safety features that qualify for discounts
  • Other factors beyond the age of the car will influence insurance rates as well

When you’re shopping for a car, it’s important to look at the age of the car. New cars might be more expensive to insure, but some drivers may find they qualify for specific discounts.

Old cars might save you money on insurance but cost you more in other areas. It’s important to remember that car insurance companies look at more than just the age of the car to determine the cost of insurance premiums.

Enter your zip code into our free rate comparison tool to find the best rate for the car insurance you need.

Insuring a New Car

Insuring a new car is probably going to cost you more money. The main reason is the cost of the car. The insurance company knows that if you total the car, it’s going to cost them more money.

If you are still making payments, you should also consider getting gap insurance. A new car replacement policy may also be worth your consideration.

The gap coverage will cover the cost difference of the value of the car and what you owe the finance company.

Some insurance companies will help to offset the cost of insuring a new car with discounts. You might qualify for a new car discount or discounts offered for the safety features inside the car.

Many new cars have features that include

  • airbags
  • car alarms
  • anti-lock brakes
  • smart driving systems

When you’re in the process of shopping for a new car, it’s important to compare safety ratings. Additionally, you can get quotes from multiple insurance companies to learn the cost of insurance premiums before you buy a car.

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Insuring an Older Car

When you decide to get an older car, the insurance is most likely going to cost less for several reasons. One of the first is the of the value of the car, due to car depreciation.

You might also want to look at eliminating certain areas of coverage that are not required by the state.

Collision and comprehensive coverage are not required by the state. If you own the car outright, there would be no lienholder requirements to fulfill, either.

  • Collision coverage would protect you in the event you were at fault for an accident and wanted to have insurance pay for the repairs.
  • Comprehensive coverage would take care of non-collision related incidents, including acts of God.

You could easily have a $500 deductible on your policy, and choose to make repairs on your own to save money.

There’s a difference between insuring an older car and a classic, too. Some car models reach a certain age and are considered classic or vintage.

Obtaining insurance for a classic car is a different process. You would need to establish the value with the insurance company as it will often cost more to get a classic car repaired.

Many insurance companies that insure classic cars will not use standard car depreciation formulas. Further, they will allow for the use of a specialized or restoration shop for repairs and other services.

Factors Other than the Age of the Car

Insurance companies do look at other details of the car beyond the age, too. Sports cars, for example, are more costly to insure because of their ability to reach higher speeds.

The age of the driver is also going to be a major factor when insurance companies calculate the cost of insurance. Many teen drivers will pay more for insurance because of their inexperience on the road.

As such, it’s important to get a teen driver a car that isn’t going to automatically cost more to insure.

A teen with a sports car would result in a high insurance cost, even if there are various discounts applied to the policy.

Insurance is partially affected by the age of the car, but premiums are calculated based on much more. When deciding between a new car and an older one, it’s best to determine what features they have and what coverage is desired.

Then, get online quotes to compare rates to see what the total cost impact will be on the monthly premiums. There are always discounts available, even if it means having to ask for them. Enter your zip code below to compare quotes for free today.