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Personal Perspective

Is It Cheaper to Insure an Old or New Car?

By October 10, 2016No Comments

1610-pp-4How old’s your car? To save money, you may prefer to invest in older model cars. The insurance costs could take away any financial benefit, though, so understand if it’s cheaper to insure an old or new car.

Drop Comprehensive Coverage

Older cars depreciate in value. Find your car’s value in Kelly Blue Book or Edmonds then check your insurance policy. If you’re paying more for your comprehensive coverage than the car is worth, drop it and save money.

Your Age Matters

If you’re a young or senior drivers, be prepared to pay higher auto insurance rates because statistically drivers in these age groups have a high risk of accidents. On average, middle age drivers enjoy the lowest insurance rates.

Check Out the Safety Features

The safety features on your vehicle can lower your insurance rates since they reduce accidents. Older cars without safety features such as automatic brakes and back-up cameras may be more expensive to insure.

Drive Safely

The way you drive can actually influence your auto insurance rates more than your car’s age. Maintain a clean driving record to get the best rates.

Know Other Factors that Determine Insurance Rates

Your car’s safety features, your age and your driving record impact your insurance rates. Other factors can affect your policy’s costs, too.  Those factors include:

  • Marital status
  • Gender (depending on the state in which you live)
  • How often and where you drive the vehicle
  • Claim history

How to Lower Your Rates

You increase your chances of earning low insurance rates when you take several steps.

  • Don’t drive while you’re distracted. Pay attention to your surroundings and keep your focus on the road.
  • Obey traffic laws and follow posted signs.
  • Choose a high deductible. By increasing your deductible, you can lower your annual vehicle insurance costs.
  • Improve your credit score. Many insurance companies use your credit score to decide if you’re a good insurance risk, so improve your score to get lower insurance rates.
  • Add a vehicle. Instead of purchasing two different insurance policies, add the second driver in your home to your policy and save money.
  • Bundle different policies. Purchase auto insurance from the company that also insures your home or rented apartment, and you’ll get a discount on your car insurance.

While the age of your car does affect your car insurance rates, other factors also determine the amount of insurance premiums you pay. For more details, talk to your insurance agent. He or she can also suggest additional steps you can take to lower your rates and get the insurance coverage you need.