Auto Insurance For Older Cars (2024)

FAQs

Should I put full coverage on a 10 year old car? ›

Between 10 and 15 years after a vehicle's model year, full coverage is a poor investment. While the cost of full coverage by itself likely won't be more than what a car is worth, the cost of insurance is more likely to be higher than the value of the car after an accident.

It's usually worth dropping full coverage on an older car if its value is less than a few thousand dollars, as long as there's no loan on it. The more your car depreciates, the less you'll get from the insurance company after an accident or theft.

Hagerty, Grundy, American Collectors, American Modern and Heaco*ck provide the best car insurance for old cars. These companies are the best options for classic car insurance because of their fair rates, accessibility and experience in the industry.

The older a car gets, the harder it may be to source these parts for repair, which can also drive up the cost of car insurance for older cars. Additionally, older cars may not have as many safety features as newer cars, which might increase the cost of auto insurance and reduce available discounts.

Do I need comprehensive insurance on an old car? If you don't have a loan or lease on your car, comprehensive insurance likely isn't required. And if the vehicle isn't worth much, it may not make financial sense to keep the coverage.

If your vehicle is older (valued at less than the cost of a full coverage policy) or you otherwise feel that you have enough money to pay for damage out of pocket, you may want to choose liability-only.

A Third-Party Car Insurance Policy is mandatory, be it a new or old car. But you can consider buying the Comprehensive Insurance Policy for your old car as it provides all-round coverage for your car.

The recommended insurance coverage for someone with an old car is up to $100,000+ in bodily injury liability insurance and $50,000 in property damage liability insurance per accident, given that the median net worth for Americans is around $121,000 and the average cost of a new car is about $48,000.

Older cars also have fewer anti-theft features making them more likely to be stolen. They also have fewer advanced safety features making the likelihood of accidents and injuries more likely. Therefore, you'll need increased insurance coverage to account for those risks.

Are older vehicles 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.

The value of your vehicle will dictate whether you need comprehensive coverage. If your vehicle is older and is not worth as much, you may be able to reduce your insurance premium by avoiding comprehensive and collision coverage.

Your vehicle holds a low value: As with collision, consider dropping comprehensive coverage if your vehicle's market value is lower than a few thousand dollars. Figure in your deductible as well and the potential insurance payout may not be worth the price of the coverage.

As your vehicle ages, its value drops. The general rule of thumb is that once your car is more than 10 years old, it is not worth purchasing full coverage insurance. To decide if you should purchase full coverage insurance, calculate the value of your vehicle and compare this amount against your expected premiums.

Cars over 10 years old can still be reliable. Most vehicles can last well over a decade with proper care and maintenance. In fact, the average car on U.S. roads is now 12.5 years old, according to a study from S&P Global Mobility. Furthermore, a car doesn't really stop depreciating until it hits that 10-year mark.

Typically, most insurance companies determine your car insurance based on your car's age, make, and model, and safety features like a backup camera or a monitor that warns you a vehicle is in your blind spot, says Koopman.