Why Does My Car Insurance Go Up as My Car Gets Older?


Car insurance premiums are made up of many different parts.

First, there’s the amount of coverage you choose. Your age, driving record, and location also play a huge factor into how much your car insurance premium will be.

One of the largest factors in your premium is also your vehicle itself—particularly the age of the car.

While it might not seem logical since the value of your car is not increasing as it gets older, your insurance premium can continue to go up. Read on to learn more about insurance for older cars and what goes into your premium cost.

Woman examines her car after an accident.

Why Does My Car Insurance Keep Going Up?

Aside from general market shifts and changes in coverage, the age of your care is one of the major factors that plays into your car insurance premium for a number of reasons.

For one, if you’re in an accident, repair costs for an older car tend to be higher because the parts are more scarce. That’s one major reason your insurance company might charge a higher premium anticipating higher repair costs in the event of an accident.

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.

Your insurance premium is determined by the risk associated with your car, and your insurance company spreads that risk evenly over the expected life of your car. So when your car is new, you are getting a better deal on your insurance premium. This switches as your car gets older.

Insurance agent and customer shake hands after discussing car insurance for older cars.

How to Save Money on Insurance for Older Cars

Because the value of your car depreciates over time, the cost to replace the vehicle after an accident would be lower for your insurance company. But this doesn’t mean your premium will decrease at the same depreciation rate.

That’s why in some cases, your insurance agency may recommend against having collision coverage for an older car. You will still need to have your state’s minimum coverage amounts for property damage and personal injury protection, but dropping collision can save you from spending more on your premiums than the car is worth.

Keep in mind, if you do not have collision coverage on your car, it means that if the car is totaled, you will be paying entirely out of pocket to replace it. So before dropping any coverage, make sure you discuss all the possible outcomes with your insurance agent.

You might also find that your car holds value better than most other car models so keeping collision is actually the smarter move.

Another way to save money on insurance for older cars includes adjusting your deductible. Higher deductibles go hand in hand with lower premiums. This way, if your car is totaled, you have coverage to replace it if needed but you haven’t paid as much up front so you can still elect to simply replace the car out of pocket.

Many insurance carriers offer an array of discounts like for safe driving, bundling policies, installing safety features, and more. Talk to your insurance agent about what discounts you’re eligible for.

Finally, if you have an older car that you drive less frequently, you may be eligible for usage-based insurance programs. This is particularly useful if you have a classic car that is very valuable, but you leave it in your garage more often than not.

Woman buckling her seatbelt before driving.

Work With an Independent Insurance Agency to Get the Best Coverage

When it comes to getting quality insurance coverage at the right price, you have to shop around and compare quotes from different carriers. This is a lot of work and can be confusing but not if you work with an independent insurance agency.

Independent insurance agents can do the research for you and present you with only the best options, saving you a huge amount of time. Here at Darr Schackow Insurance, we work hard to get to know you and your unique situation meaning you get only the best insurance coverage that fits both your lifestyle and your budget.

Contact us or get an auto insurance quote now. We have offices across Florida, including Okeechobee, Milton, Wellington, and even virtual offices.



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