Low Cost Car Insurance

Reader’s Question:

I would like to know if auto insurance is more or less for a new vehicle as opposed to an older car?

Kenny

Wilmington, DE

Generally, an old used car will cost less to insure because normally it is worth less than a brand new vehicle. In addition, parts and repair costs tend to be lower for a used vehicle compared to a new car and therefore if the car must be repaired after an accident the expense should be less for the insurance company to fix the used car.

If the new vehicle though is a mid-size family sedan it may cost less than a used Jaguar to insure. So it will depend on the type of the car also as the age of it. Collision-damage costs are also one of the determining factors in differentiating the cost of insuring one type of vehicle over another. If a vehicle is popular to thieves and usually stolen it may be higher to insure, whether it is used or new.

If you are looking for a car to purchase and are trying to decide between a older or new car, you can get an car insurance quote on each car to see what the price difference would be for each to be insured.