is car insurance cheaper for older cars

[SanBennett]

Yes, car insurance is generally cheaper for older cars, but the primary reason is the type of coverage you're likely to carry, not the car's age itself. The most significant factor is the elimination of comprehensive and collision coverage. These cover damage to your own vehicle. Since an older car has a low actual cash value (ACV)—the market value at the time of a loss—the potential payout for an insurer is small. Paying for these coverages often doesn't make financial sense if the annual premium is close to or exceeds the car's value.

However, your state's minimum liability coverage is mandatory regardless of the car's age. This covers injuries and property damage you cause to others. The cost of liability insurance is influenced more by your driving record, location, and age than by your car's model year.

Other factors that can lead to lower premiums for older vehicles include a higher likelihood of safety features like airbags becoming standard, and potentially lower repair costs for common models. The best way to save is to discuss dropping physical damage coverages with your agent once your car's value depreciates significantly.

Factor	Why It Lowers Premium for Older Cars	Example / Data Point
Coverage Type	Owners often drop comprehensive/collision, the most expensive parts of a policy.	Removing these can cut premium by 40% or more.
Actual Cash Value	Low car value means a small maximum payout for the insurer in a total loss.	A 2010 sedan might have an ACV of $4,000 vs. $35,000 for a new one.
Repair Costs	Parts for discontinued models can be cheaper and more available.	A 2008 Civic bumper may cost $300 vs. $1,200 for a 2023 model.
Safety Features	Basic safety features (e.g., ABS, airbags) are standard, reducing injury claims.	IIHS data shows driver death rates are higher in much older vehicles.
Vehicle Use	Older cars may be driven less frequently, qualifying for low-mileage discounts.	Driving under 7,500 miles annually can trigger a 5-10% discount.
Anti-Theft Devices	Older cars are statistically less attractive targets for thieves.	Rates of theft for models over 10 years old are significantly lower.

[DeThomas]

From my experience, it's a mix. The insurance bill for my old sedan is way lower than for my wife's new SUV. But that's because I only carry liability on the old car. The savings come from accepting that if I crash it, the insurance company isn't writing me a check. It's a calculated risk. The car's worth maybe three grand, so I'm not gonna pay a thousand a year to insure it for that. The liability part, which is what the state requires, doesn't get much cheaper just because the car is old.

[MacMary]

Think of it as insuring the car's value, not its age. An insurer looks at a 15-year-old car and sees a maximum potential loss of a few thousand dollars. For a new car, that risk is tens of thousands. Therefore, the portion of your premium that covers your own car's damage—comprehensive and collision—plummets. The mandatory liability portion, which protects others, is priced on your risk as a driver and changes less with the car's age. So yes, the overall bill is usually cheaper, but mainly because you're choosing to insure less.

[RobertMarie]

As a parent who handed down an old car to my teenager, I was shocked the insurance wasn't cheaper. The agent explained that while the car itself was inexpensive to insure, the primary driver being a young male negated those savings. The biggest cost was the liability coverage, which is based on the driver's risk profile. The car's age helped a little, but the driver's age and record are what really set the price for the legally required part of the policy. We still skipped the collision coverage on the old car to save money.

[Serenity]

It's a common misconception that the age of the car automatically makes insurance cheaper. The real mechanism is depreciation. A new car loses a huge portion of its value in the first few years, and the insurance premium reflects the cost to replace it. After about five to seven years, the depreciation curve flattens. The car's market value is now low enough that paying for full coverage often doesn't make economic sense. You switch to liability-only, and your premium drops dramatically. The car's age is a proxy for its value, which is the true factor.