(919) 321-2886 | (336) 792-1170 ☰ ˟
All About Insurance Logo Logo Shadow
Pay My Bill File a Claim Español Find Location Donate Socks
Social Icon Social Icon Social Icon Social Icon Social Icon
Pay My Bill File a Claim
Español Find Location 
  • Products
    • Animal Collision Coverage
    • Arborist Insurance
    • Auto Insurance
    • Boat Insurance
    • Business Insurance
    • Garage Insurance
    • Health Insurance
    • Homeowners Insurance
    • Life Insurance
    • Motorcycle Insurance
    • Renters Insurance
    • Tow Truck Insurance
    • Trucking Insurance
    • Uninsured/Underinsured Motorist Coverage
  • Get a Quote
  • About
    • About Us
    • Premier Nationwide© Agency
    • Employee Directory
    • Our Locations
    • Testimonials
    • Privacy Policy
  • Logo
  • Blog
  • Resources
    • Refer a Friend
    • Important Links
    • Insurance Glossary
    • Newsletter Archive
  • Contact
    • Contact Us
    • Join Our Newsletter
Home > Blog > Is It Better to Insure a New Car or an Old Car?
WEDNESDAY, AUGUST 12, 2020

Is It Better to Insure a New Car or an Old Car?

Several older classic cars parked in a row

Whether you’re looking for your first vehicle or your fifth, there are a lot of things to consider before purchasing. You need a car that fits your lifestyle and can carry what you need. You may need a car that is pet friendly, a car that is built for off-roading, or one that is safe for children.

One of the main things to consider, even after you figure out what type of vehicle you want, is the age of the vehicle.

There are a lot of ups and downs to both new cars and old cars. Old cars may have more maintenance problems and a shorter lifespan, but new cars can be incredibly expensive and don’t always live up to expectations.

Either way, you will have to insure this vehicle. Here are some upsides and downsides to insuring both new and old cars.

New Cars

Benefits of Insuring a New Car

Insuring a new car can earn you discounts from insurers. While it is usually more expensive, insurance providers are happy to insure cars with updated safety features that can help prevent accidents and, in turn, help prevent claims.

It is also easy to find insurance for a new car, as full coverage is required to protect the new vehicle.

Downsides of Insuring a New Car

As mentioned above, insuring a new car can be more expensive. This is in part because the value of the vehicle has not depreciated yet. The newer the vehicle, the more you may be paying for car insurance. Full coverage is also required by dealerships and finance institutions until the vehicle is paid off. This may mean paying for expensive full coverage car insurance for an extended period of time.

Old Cars

Benefits of Insuring an Older Car

An older vehicle is usually one that is 10 years or older, according to most insurance providers. As expected, insuring an older car is generally less expensive than insuring a brand-new car. This is because the value of the vehicle depreciates over time. As the value of the car goes down, so do the insurance premiums.

You may also have more leeway with the coverage on your older vehicle, especially if it is paid off. Some cars will only need basic liability insurance as required by your state, but you can often purchase full coverage car insurance, as well.

Downsides of Insuring an Older Car

Unfortunately, insuring an older car isn’t always quite that easy—or even possible. Cars that are 15, 20 years old or even older may be hard to insure. This is because very old cars are at a high risk of breaking down of having problems that can lead to a claim. Sometimes, it is because the vehicle’s value isn’t even worth insuring. If the cost of insuring a vehicle is more than the cost of completely replacing it, you could have a hard time finding insurance.

When it comes down to purchasing and insuring a car, the decision is yours. There are benefits and downfalls no matter what type or age of vehicle you buy. What matters is that you make the best decision for you and your family.

Do I Need Full Coverage Car Insurance?

Full coverage car insurance usually isn’t required by state law, but it is recommended for most vehicles, especially if those vehicles are not paid off. If you have an older vehicle, you may be able to simply insure it with liability requirements from the state. Newer vehicles will almost always need full coverage car insurance. This is because damage to a new vehicle tends to be expensive, and one accident could cost you thousands of dollars out of pocket without insurance.

Keep in mind that liability insurance only covers injuries and damage you may cause someone else while operating the insured vehicle. It won’t cover damages to your vehicle or medical payments for you and your passengers after a wreck. If you have the option to insure your older vehicle with full coverage car insurance, it may be worth the cost to avoid expensive damages and injuries later on.

Can You Drop from Full Coverage to Liability?

If you ever have a question about your insurance policy or want to change your coverage, speak to your car insurance agent. In some cases, you may be able to change your full coverage car insurance to a liability-only policy depending on the state of the vehicle, your insurer, your location and more.

Also Read: Why Did My Car Insurance Suddenly Go Up?

Get A Quote

 

 

Posted 2:00 PM

Tags: car insurance, auto insurance, all about insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021
  • 2020

  • auto insurance(20)
  • all about insurance(18)
  • home insurance(16)
  • car insurance(16)
  • homeowners insurance(8)
  • insurance(3)
  • home(3)
  • north carolina(2)
  • covid-19(2)
  • protection(1)
  • insurance marketing(1)
  • nil(1)
  • unc football(1)
  • home improvement(1)
  • fire prevention(1)
  • new home(1)
  • defensive back(1)
  • hail damage(1)
  • roofing(1)
  • insurance agent(1)
  • car tips(1)
  • vehicles(1)
  • hail storm(1)
  • underinsured motorist coverage(1)
  • insurance tips(1)
  • halloween(1)
  • damage(1)
  • car accident(1)
  • siding(1)
  • commercial(1)
  • holiday bowl(1)
  • community outreach(1)
  • insurance discounts(1)
  • savings(1)
  • sock drive(1)
  • renovations(1)
  • employee(1)
  • carriers(1)
  • emergency preparedness(1)
  • motorcycle insurance(1)
  • home-based business insurance(1)
  • charity(1)
  • flooring(1)
  • coverage(1)
  • storm duck(1)
  • car checkup(1)
  • i hit a car(1)
  • uninsured motorist coverage(1)
  • business insurance(1)
  • switch insurance(1)

View Mobile Version
Have Questions?
Get In Touch
Resources
Get A Quote
Payment Options
Report a Claim
Our Carriers
About Us
Refer A Friend
Blog
Contact Us
Contact us
Auto: 919.321.2886
Home: 919.321.4663
or find a location
Email: info@allaboutinsurance.com
 Social Icon Social Icon Social Icon Social IconInstagram logo
© Copyright 2021. All rights reserved. Powered by Insurance Website Builder.