Is it better to have collision or comprehensive coverage?

Collision and comprehensive are both physical damage coverage types for your car. If you do not have a loan or lease contract, you could choose both, just one or neither. Collision provides coverage if you collide with something, like another vehicle, in a covered incident. Comprehensive covers other physical damage occurrences, like vandalism, theft, broken glass and hitting an animal. Whether it is better to have one, both or neither of these coverage types will depend on your situation and insurance preferences. For example, if your car falls under the 10 percent rule, but you live in a rural area where deer are commonly on the roadways, you might choose to just keep comprehensive coverage. Most insurance professionals recommend keeping both coverage types if you can afford to do so.

Is it worth having comprehensive insurance on an old car?

Whether comprehensive insurance is worth it for you will likely depend on your vehicle type, your insurance needs and your lender requirements. If you finance your older car, you will likely have to have comprehensive coverage. Reviewing your car's value, your deductible and your premium may help you determine if comprehensive insurance is worth it for your old car.

What companies offer the cheapest insurance for older cars?

The answer to this question will depend on your specific vehicle, location, driving record and other personal rating factors. While some companies offer cheaper average rates than others for older cars, the cheapest company for you will also depend on your personal characteristics and the make and model of your vehicle. The best way to find the cheapest insurance for your older car is likely to compare quotes from different carriers.

What cars have the lowest depreciation rates?

A brand new car can lose as much as 10 to 20 percent of its value in its first year, and 15 percent each year after that. After five years, a vehicle could be worth around 40 percent of its original purchase price. While all cars are prone to depreciation, some makes and models depreciate at a slower rate than others. Kelley Blue Book determined that some of the best value-holding vehicles of the year include the Toyota Tundra, Toyota Tacoma, Tesla Model X and Ford Bronco.

What is the best car insurance for older cars?

The best car insurance for older cars will depend on a variety of factors. This includes what kind of vehicle you have, how old it is, how much you use it and whether it is a classic car or simply an older vehicle — among other variables. In general, you will need to meet your state’s minimum insurance requirements. Optionally, both collision and comprehensive coverage can offer benefits, even for older cars. It is best to shop around with multiple car insurance providers and find out what kind of coverage they offer for older vehicles and how much it might cost.

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Insurance for older cars

Written by

Mandy Sleight

Edited by

Jessa Claeys

Edited by

Jessa Claeys

Updated Oct 09, 2024

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Is car insurance cheaper for older cars?

Whether or not car insurance is cheaper for older cars depends on several factors. While new cars may be more expensive to insure due to their higher value, older cars may be costly as well. Although they may have a lower value, older cars may also have expensive parts that could make repairs expensive. 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.

The impact of vehicle age on your car insurance premium may depend on your car's make and model. Premiums for each make and model differ between insurance companies because each uses its own rating structure. A vehicle that holds its value over time may be more expensive to insure than one that depreciates quickly. A vehicle’s repair price, anti-theft and safety features are factors used to determine the final premium. Lastly, your coverage selection may change as your car gets older, potentially impacting your premium. In some cases, an older car may be cheaper to insure than a newer one if you choose to no longer carry full coverage or endorsements like new car replacement coverage.

Which type of insurance is best for old cars?

If you are looking for older car insurance, you might wonder if it's still worth it to carry collision and comprehensive coverage. In most cases, you can choose whether you want to continue paying for these optional coverage types, but the decision may be dependent on other factors. If you have a loan on your old car, your lender may require you to carry these coverage types to satisfy the terms of your loan or lease agreement.

Comprehensive and collision coverage are physical damage coverage options that can pay to repair or replace your older car if it is damaged by a covered claim. If you can afford to fix or replace your older car without insurance, you may not need either coverage. However, if you cannot afford it, then you might consider keeping these coverage options to protect your finances. A general rule of thumb used by insurance professionals in deciding on whether to maintain physical damage coverage is the 10 percent rule. In this case, when the annual coverage costs over 10 percent of the car’s replacement value, it may not be worth keeping the coverage. Speaking with a licensed insurance professional may help you decide whether you should maintain collision and comprehensive coverage on your vehicle.

State minimum insurance

No matter how old your car is, you are required to carry state minimum liability limits or prove financial responsibility to register it and legally drive on roads. Each state has its own requirements, which must be met and maintained for as long as the car is registered. If you can afford more than the state minimum liability insurance, it can provide greater financial protection and is recommended by most insurance experts.

State minimum insurance is the least amount of liability coverage you must have to register and drive your car. Some states also require personal injury protection (PIP) or medical payments and uninsured motorist coverage.

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Insuring classic cars vs. older cars

If you are looking for old car insurance, consider whether your vehicle may actually be a classic car. While a classic car is an older car, there are key differences between the types of coverage offered for each type. Auto insurance for older cars that are not considered classic can generally be part of a standard auto insurance policy. However, a classic car may be insured under a specialty insurance product, offering unique coverage not found on the average policy.

A classic car is usually 20 years or older and has collectible value that typically exceeds its original sale price. Even with added features not offered in standard auto insurance, classic car insurance is usually cheaper, although the policy may have mileage restrictions. Some insurance companies only offer coverage as a specialty auto insurance policy, while others offer it in addition to standard insurance coverage.

Frequently asked questions

Collision and comprehensive are both physical damage coverage types for your car. If you do not have a loan or lease contract, you could choose both, just one or neither. Collision provides coverage if you collide with something, like another vehicle, in a covered incident. Comprehensive covers other physical damage occurrences, like vandalism, theft, broken glass and hitting an animal. Whether it is better to have one, both or neither of these coverage types will depend on your situation and insurance preferences. For example, if your car falls under the 10 percent rule, but you live in a rural area where deer are commonly on the roadways, you might choose to just keep comprehensive coverage. Most insurance professionals recommend keeping both coverage types if you can afford to do so.
Whether comprehensive insurance is worth it for you will likely depend on your vehicle type, your insurance needs and your lender requirements. If you finance your older car, you will likely have to have comprehensive coverage. Reviewing your car's value, your deductible and your premium may help you determine if comprehensive insurance is worth it for your old car.
The answer to this question will depend on your specific vehicle, location, driving record and other personal rating factors. While some companies offer cheaper average rates than others for older cars, the cheapest company for you will also depend on your personal characteristics and the make and model of your vehicle. The best way to find the cheapest insurance for your older car is likely to compare quotes from different carriers.
A brand new car can lose as much as 10 to 20 percent of its value in its first year, and 15 percent each year after that. After five years, a vehicle could be worth around 40 percent of its original purchase price. While all cars are prone to depreciation, some makes and models depreciate at a slower rate than others. Kelley Blue Book determined that some of the best value-holding vehicles of the year include the Toyota Tundra, Toyota Tacoma, Tesla Model X and Ford Bronco.
The best car insurance for older cars will depend on a variety of factors. This includes what kind of vehicle you have, how old it is, how much you use it and whether it is a classic car or simply an older vehicle — among other variables. In general, you will need to meet your state’s minimum insurance requirements. Optionally, both collision and comprehensive coverage can offer benefits, even for older cars. It is best to shop around with multiple car insurance providers and find out what kind of coverage they offer for older vehicles and how much it might cost.