In general, it can be cheaper to insure older cars compared to newer models.

Reasons as to why older cars can be cheaper to insure include depreciation and lower repair costs.

However, there are some exceptions to this. For example, if an old car is considered a classic or collectable, then this will bump up your premium. In addition, if a car is more likely to be stolen, or has a higher accident rate, this can also increase the cost of your premium, regardless of whether it’s old or new.

On average older cars are cheaper to insure than newer cars due to lower value and repair costs, but new cars may have better safety features that reduce premiums. Factors like model, usage, and security impact costs.

By understanding these factors in depth, you will be able to make an informed decision before purchasing your car!

Old versus new cars – how this can impact insurance costs

Depreciation, lower repair costs and safety features stand out as the most important factors that can influence insurance premiums.

Depreciation refers to how quickly a car loses its value. With this in mind, it may cost the insurance provider less to pay out for an older car in the case of an accident, as its value will be less than that of a newer car. This means there is a lower risk for the insurer, resulting in a lower premium.

Meanwhile, older cars generally have cheaper parts readily available if need be. The repairs aren’t as costly as newer models, and may require less labour hours to fix. This translates to lower potential payouts for insurers, helping to reduce your overall premium.

On the other hand, newer cars often have advanced safety features – for example, lane assist and collision detection – that older cars don’t possess. This can reduce your insurance costs as the car is considered safer to drive, reducing the likelihood of accidents and injuries. Newer cars also come with extended warranties, which can reduce repair costs in the initial years.

What are some other factors that can influence premiums of old versus new cars?

Risk of theft: Older cars may have a higher risk of theft due to a lack of safety features, like alarms and sensors. This means some older models are more frequently stolen, impacting premiums. Meanwhile, if an old car is considered a classic or collectable, this may also be prone to theft as it has a high value, leading to increased insurance prices.

Insurance groups: Every car sold in the UK is assigned a car insurance group based on specific criteria that help insurers calculate risk. The different groups focus on different elements - for example, if keeping insurance costs low is your top priority, you’ll want to stick to cars in groups one to five.

Cost of writing off the car: Newer cars tend to have higher repair and replacement costs, increasing overall premiums. These cars are fitted with the latest in technology, thus requiring the labour of more advanced engineers, which can increase the price if something goes wrong.

Power and performance: High-performance engines found in some newer models may increase premiums. On the other hand, lower-powered cars, often found in older models, might have lower risk ratings, and rank lower in insurance groups.

Other costs to consider when buying a car

It always pays to be mindful of any hidden costs associated with car insurance, especially when considering whether to purchase a new or old car.

Newer car models tend to be more fuel efficient due to their advanced technology. This means you can save money on petrol and diesel costs in the long run. You should also think about how much you drive – if you drive a lot, you will want a car that prioritises fuel efficiency, and so hybrid or electric cars might be a worthwhile investment.

Road tax and emission charges can also impact the cost of running your car. Road tax, for example, is based on the car’s CO2 emissions, and newer, more eco-friendly cars often sit in the lower tax band.

Nowadays, many cities in the UK have emission charges, like London’s ULEZ zone, where older, more polluting vehicles need to pay to enter certain areas. Before you purchase your car, it’s worthwhile checking in with your local council to see if you will be subject to a charge.

By creating a comprehensive plan looking at the pros and cons of old versus new cars, and budgeting for these factors ahead of time, you will be able to make an informed decision and avoid any financial surprises down the road!

Get a car insurance quote with Zego

Whether you’re looking for insurance for an old or new car, Zego can help by providing you with a bespoke quote tailored to your personal needs.

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