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How Your Car's Age Affects Your Car Insurance Rates

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When it comes to calculating your car insurance rates, insurance companies consider multiple variables. One of these variables is your vehicle's age.

Insurance rates for older cars can be cheaper or more expensive than newer models, depending on the circumstances of individual car owners. Read along to find out how your car's age could affect how much car insurance premiums you will be required to pay.

It Affects Your Vehicle's Value

All cars suffer normal wear and tear and depreciate over time. If your car is older, it will have a lower resale value. That said, certain car types, including classic, vintage, antique, and collector cars can be worth much more than newer models. As a result, the insurance rates for these cars can be higher than normal auto coverage. 

It Affects Your Vehicle's Safety

Today's cars come equipped with safety features that may not be found in many older models. Because of this, modern cars are generally considered to be safer than older ones. Owing to the perception of enhanced safety, newer cars tend to get better insurance rates than older ones that lack comparable safety features. 

If your older car boasts safety features that are substantially comparable to those found in a newer model, then it will most likely be cheaper to insure due to its lower resale value.

It Affects Your Vehicle's Reliability 

A car's reliability tends to decrease over time, even if the vehicle is properly maintained. Older vehicles are associated with a higher risk of collisions and breakdowns due to mechanical problems or failures. These vehicles may also be plagued with parts scarcity, especially if they have been discontinued. These factors can make older cars more expensive to insure compared to newer ones.

On the flip side, newer models are expected to undergo significant wear and tear before they can start to become unreliable. Plus, they may incorporate safety sensors that immediately let drivers know when a problem arises, subsequently allowing for timely repairs. The perceived reliability of newer cars, other factors held constant, can result in lower car insurance rates.

In addition to your car's age, many other factors can contribute to whether you will be charged cheap or expensive car insurance rates. These factors include your driving history, car insurance claims history, where and how often you drive, the type of vehicle you drive, and many more. To get a quote for your auto insurance, contact your local car insurance company.

For more information on car insurance, contact a company like Illinois Insurance Center Inc.


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