Are older cars cheaper to insure?

In general, auto insurance for older cars may be cheaper than insuring newer vehicles of the same make and model if the used car is cheaper to repair or replace. A car depreciates in value over time, which lowers the maximum amount an insurance company would have to pay in the event of an accident. As your car ages and decreases in value, you can make your insurance cheaper by dropping optional coverages. So while the saying, "the older the car, the lower the insurance" is generally true, it depends more on your coverages, location, and the car's make and model than its age.

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Ways to lower your older car insurance premium

Like with any car insurance policy, you can lower your older car insurance premium by raising your deductible, lowering your coverage limits, or even dropping some optional coverage, like comprehensive and collision. As your car ages, it becomes cheaper to replace in the case of a total loss, so you may not need those optional coverages. Compare your car's depreciated value to the combined cost of the deductible and comprehensive and collision coverage to determine if it makes sense to drop these coverages. Keep in mind that if you have a loan or lease for your car, your lender may require you to maintain comprehensive and collision coverage.

If you raise your deductible, make sure you have enough money set aside to cover the potential cost in case you need to make a claim. And if you want to lower your coverage limits, keep in mind that you can only lower your liability limits so much; every state mandates liability minimums.

Insurance for your 10-year-old car vs. a classic car

Car insurance for a 10-year-old car, or a car of any age, that you drive every day works the same as it does for any car with the added bonus that it may be cheaper than for a brand-new model. However, if you have a classic car and you meet certain qualifications (such as only driving it occasionally), you might consider classic car insurance instead. Rather than only covering your older car up to its depreciated value, classic car insurance provides coverage up to an "agreed value," which can factor in any restoration work completed and market demand for the vehicle. Learn more about how classic cars are valued.

While the saying "the older the car, the lower the insurance" is generally true, it depends more on your coverages, location, and the car's make and model than its age. Learn more about the cheapest cars to insure.

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Please note: The above is meant as general information to help you understand the different aspects of insurance. Read our editorial standards for Answers content. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy and/or speak to an insurance representative. Coverages and other features vary between insurers, vary by state, and are not available in all states. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation. We are not responsible for the content of any third-party sites linked from this page.