New vs. Used Cars

What is the Difference In Auto Rates Between New vs. Used Cars?

So, you are looking for a new car and want to get a jump start on determining the change in your auto insurance policy premiums.  A few quick tips to keep in mind while searching for that new automobile.

Most importantly, the newer the car, the higher the premium.  The insurance premium on a new car is always higher than that of an older car.  This is because the newer car carries higher value, meaning it would cost more to repair a new car and return it to its’ original condition that that of an older vehicle, where used parts may be used.

Classic cars, despite their age,  also tend to carry a higher insurance premium based on the fact that finding replacement parts to repair classic cars is more difficult, thus an increased expense.  The age of the car will also impact the type of auto insurance coverage needed, although this varies by state.  Collision insurance, for example, is an optional coverage that carries increased cost.

If you buy an older vehicle it may not be cost effective to carry collision insurance because the cost to repair is more than the actual value of the car.  With newer cars, collision insurance is usually recommended.