Are older cars cheaper to insure?

What type of car insurance should I consider for an older car?

The type of car insurance depends on whether you drive the car every day or take it out only for special occasions.

Daily driving car insurance

If you drive the car regularly, these standard auto coverages offer protection:

• Liability coverage: May pay for injuries or property damage you cause.
• Comprehensive coverage: May cover damage resulting from theft, vandalism, fire, or weather.
• Collision coverage: May pay to repair or replace your car after a crash with another vehicle or object.
• Uninsured/underinsured motorist coverage: May cover costs if a driver with little or no insurance causes a crash.
• Medical payments: May cover medical costs for you and your passengers after an accident.

Classic car insurance

Classic car insurance is designed for vehicles that aren't used as daily drivers. These policies may include:

• Agreed value coverage: You and your insurer set the car's insured value upfront, and that amount is paid in a covered total loss.
• Original parts coverage: May pay for original parts to repair your classic if it's damaged in a covered incident.
• Roadside assistance: Some classic car policies offer towing and support designed for collector vehicles, such as flatbed towing or soft-strap transport.

Typical auto insurance coverages, including liability, comprehensive, and collision, are also available for classic cars. Classic car insurance also requires limited use and proper storage.

How can I lower my insurance premium for an older car?

You can lower the cost of insurance on an older car in several ways:

• Raise your deductible: This usually lowers your premium, but you'll pay more out of pocket if you file a claim. Make sure you can afford the higher deductible before choosing it.
• Reduce your coverage limits: Lower limits can reduce your premium, but you can't go below your state's required minimum liability coverage.
• Drop optional coverages: As your car ages and loses value, comprehensive and collision coverages may become less cost-effective. Compare your car's current value to the combined cost of these coverages and your deductible to decide whether keeping them makes sense.
• Check lender requirements: If your car is leased or financed, your lender may require you to maintain comprehensive and collision regardless of the vehicle's age.