When buying a vehicle, one of many factors you may think about is how the age of the various options will affect your insurance costs. 

People’s instincts on this tend to immediately jump to one of two conclusions. Many think that because the shiny, new car is worth much more than an equivalent model that has aged, the newer car must cost more to insure. With other items, like houses or jewelry, the more expensive the property, the higher the cost to insure it. 

 Other people assume that because older cars don’t have many of the safety features of the newer cars, accidents are more likely and insurance companies will charge more to cover them. Maybe the older cars will also have problems on the road, like with power steering, brakes or other aging parts, that will lead to more accidents. 

The reality

It’s not so easy to say that age by itself is a factor that raises or lowers your insurance rates. An insurance company actually may look more favorably on a specific make and model, even if it is a few years in the past, if it is known to be safe, reliable and came with many safety features, than it would on a new vehicle that is not as trustworthy or safety focused. 

 The value of the vehicle is definitely a factor, however. Newer cars tend to be more valuable than older ones — when all other things are equal — so older cars do have an insurance cost advantage in that sense. 

 As the value of the used car falls even further over time, you can even drop comprehensive and collision insurance altogether, which significantly lowers the cost of coverage. This is not recommended for new cars because of their higher values, but it may be a way to save money if you know the vehicle is reaching the end of its days on the road anyway. 

 So, overall, it is generally cheaper to insure older cars, but the safety features of newer cars, among other factors like make and model, mean this is not always the case. 

Investigating insurance costs? Ask Winstead!

Getting precise answers to questions like how the age of a vehicle will affect your insurance costs is difficult. It really does depend on your specific details. 

 Winstead Insurance, based in Elkton, Maryland, is licensed to write policies in DE, PA, MD, NC and can give quotes based on whatever factors you’re weighing. We have been around since 1956 and have stayed in business by delivering the best rates and coverage with a personal touch. Give us a call at 410-398-6700 to get a quote today on your vehicle insurance.