How to Buy Insurance / Are older cars cheaper to insure?

Does Your Car’s Age Affect Your Insurance Premiums?

Does your insurance actually go down as your car ages? Coverage Cat built a database of thousands of quotes to find out.

Written by: Jazzmin Lu Reviewed by: Max Cho, Licensed Insurance Broker NPN 20377411

Coverage Cat built a database of tens of thousands of insurance quotes so that we can advise people about what the best insurance is for them. Using these results, we want to answer some of the common questions we get in insurance. Of course, one of the biggest questions is always: how do I save on this policy? 

While some lesser-known factors influence your insurance rates, much of your premium price is determined by the car you’re insuring, its make, model, and age.

In other posts we’ve explored some of the most expensive car brands to insure, but how does a car's age impact the cost of insurance? 

Is it cheaper to insure a new or old car? 

A brand-new car costs more to insure than a nine-year-old car in every state that Coverage Cat analyzed. In California, the price for a year’s worth of insurance on a new car was $768 higher! Other states showed a smaller difference in yearly premiums (Texas, $408; New York, $360; Washington, $84), but in all four states, you can expect to pay a higher premium when your car is newest. 

Why is insurance for new cars more expensive?

Typically new cars are more valuable, so the cost to repair or replace them in the event of an accident or theft is often higher for your insurance company. And although newer cars can come with additional safety features, like automatic braking systems or blind-spot warnings, these can also drive up the cost of parts and labor if you need repairs.

If you’re looking for the best deal on car insurance, whether your car is brand new or a bit older, try Coverage Cat. We’ll advise you based on your financial needs and risk to find the best auto policy!


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Coverage Cat, Inc. is a licensed insurance broker (or producer). In California Coverage Cat does business under the name Coverage Cat Insurance Services. Coverage Cat’s license numbers are listed here. Coverage Cat places insurance with a number of insurance companies, each of which is not an affiliate of Coverage Cat.