Are Used Cars Really Cheaper to Insure than New Cars?

Insurance is one of the major costs of owning a vehicle which car buyers should consider when buying a used car or a new car. So are used cars really cheaper to insure than new cars?

Age matters. According to insurance companies, the cost of insurance is not dependent on whether a car is new or used; instead, it is the age of the car that matters and condition of the older car.

It would make sense that insurance rates for older cars would be less expensive than for newer cars. However, one factor to consider is newer cars have more safety features, making them a lower your risk of a major accident. Should newer cars need repair, their parts may likely be cheaper than older cars, depending on their make and model. If an older car has hard-to-find replacement parts it can cost more to insure than a brand new car of a different make and model, particularly if it is a classic car. Insurance for a luxury car or a high-end sports car no matter the age, can cost.

Coverage is important. Older cars may not need full or collision coverage. On the other hand, a newer vehicle may qualify for more discounts because it is unlikely it would need repair right away. If you finance or lease the car, new or old, the lender or car company may require full coverage.

Zip code makes a difference. When your car is in an area where the crime rate is high, your insurance premium will be higher because it is at a higher risk of being stolen or vandalized.

To get the best insurance rate, shop around for quotes from different insurance providers. Most offer discounts for new cars with advanced safety features, like anti-theft, airbags and anti-lock brakes.

You can also adjust your deductible, coverage type or coverage amount. According to ValuePenguin, after a car is more than 10 years old, it may be a better to switch to liability-only coverage car insurance or consider purchasing a newer vehicle because the annual cost of carrying full coverage car insurance on a midsize vehicle can approach 50% of the car's value after more than 10 years. Also, the cost of car insurance plus the deductible for an at-fault accident may likely to be more than the value of a vehicle that is more than a decade old.

When in the market for a used car, stop by Carousel Preowned. CarouselPreowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.