Older Is Cheaper

• In most cases, an older vehicle will be cheaper to insure than a newer vehicle. As vehicles age, they tend to depreciate in value, which makes them less expensive to repair or replace. This means that your insurance company can afford to charge you less for your auto premium. Lower premiums make an older car a more attractive option for parents looking for a vehicle for their teenage son or daughter, as these drivers tend to cost more to insure because of their lack of driving experience.
  
  

No Full Coverage

• Policyholders can save money on their premium by dropping comprehensive and collision, also known as physical damage coverage, on their older vehicles. Older vehicles often are not financed, meaning that you don't have to carry physical damage coverage that is required by a lending institution. In many cases, the diminished value of an older vehicle makes carrying physical damage coverage an ill-advised strategy. By dropping physical damage when your vehicle is paid off, you may be able to reduce your premium by as much as 50 percent.
  
  

Restored Vehicles

• An exception to an older car's being less expensive to insure is the restored vehicle, such as a classic or antique car or truck. The status of these vehicles as collectors' items often raises their value and, potentially, their cost to insure. Your insurance company may, however, offer a special discounted rate due to the fact that these vehicles are often driven on a very limited basis. There are also specialty insurance companies that only sell this type of insurance.
  
  

Considerations

• Some types of rare older cars may be expensive to insure, even if they have not been restored. If parts are hard to find for a certain older vehicle model, it could result in higher premiums. Cars that are not equipped with modern safety features like airbags, antilock brakes, shoulder harnesses and crumple zones may be involved in accidents more frequently or result in more extensive injuries, thus making them more expensive to insure.