Recommended Insurance Coverage for an Old Car 2024 (2024)

FAQs

Recommended Insurance Coverage for an Old Car 2024? ›

Unless your used car is financed or worth a lot, you probably don't need to purchase a full-coverage policy. Most experts advise that a car insurance policy shouldn't cost more than 10% of your vehicle's cash value.

The only insurance you usually need is liability coverage and, in some states, personal injury protection. Full coverage is often recommended, but it becomes much less valuable financially with an older car.

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.

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.

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.

Additionally, maintenance costs can quickly add up as cars age. Parts are harder to find, and labor is more time-intensive. If these concerns make you uneasy, avoid cars over 20 years old. This rule of thumb may help ensure your vehicle choice is still safe, reliable, and affordable.

Collision coverage pays for damages to your vehicle that are the result of a collision with another vehicle or a road hazard. Comprehensive coverage pays for other damages to your vehicle such as theft, vandalism, animal damage, falling tree branches and other environmental damage.

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. The impact of vehicle age on your car insurance premium may depend on your car's make and model.

Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.

Do older cars cost more to insure? Your rates for comprehensive coverage or collision coverage on an older vehicle may be lower than what you'd pay for those same coverages on a newer car that's worth more. That's because you'd have less coverage (lower "coverage limits") on an older car.

What is the best car insurance for seniors over 60? ›

Quotes from AARP through The Hartford are cheaper than rates offered by Allstate and State Farm, which are some of the most popular auto insurance companies in the United States. Across three driver profiles, AARP was typically more expensive than Progressive, though cheaper than average, overall.

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.

Your car's age is considered by your insurer when calculating your insurance premium since it can determine which types of coverage may be necessary. For instance, a new car may benefit from optional new car replacement coverage, which is not available for older vehicles.

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.

If your car's value has fallen below a few thousand dollars, it might be time to consider dropping collision and comprehensive coverage. That's especially true if you have a high deductible, such as $2,000. At this point, an insurance payout may not merit the annual premiums.