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New vs Used Cars: The Insurance Cost

Logic dictates that older cars will be less expensive to insure than newer cars are they are generally worth less and their safety features are not as advanced as their more modern counterparts. However, there are a number of factors that car insurance companies will consider besides age when assessing your insurance price that will apply to vehicles both new and old. We’ll be running through just a few of them below.

new vs used cars

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New Cars Are More Expensive to Fix

Not only are new cars more expensive right out of the gate, but due to more advanced technology and modern parts, they will often be more expensive to repair than old cars. Of course, newer cars will have advanced safety features like automatic braking and onboard cameras, but that doesn’t necessarily mean they will be cheaper to insure as the parts themselves can be expensive to replace.

Old Car or Classic Car

When referring to ‘old cars’ we are of course referring not to classic cars, but to bog-standard, everyday cars, most of which have been built in the last 20 years. It might be cheaper to insure a 10-year old car than a 2-year old car, but it will also generally be cheaper to insure a 2-year old car than a 50-year old classic motor. Indeed, classic cars often require their own specialist insurance, which is added to your existing insurance as a second car.

Collision and Comprehensive Coverage

If you are insuring an older vehicle, you might want to consider dropping comprehensive cover, which physically covers your car in the event of an accident that is deemed to be your fault. Basic third-party cover is far more affordable and can drop your monthly premiums by as much as 50%. Whether you intend on taking out this extra cover or not depends on how much your car is worth; if your car is worth under £3,000 it’s not really worth taking out the more expensive insurance and this saving could be major.

It’s About You Too

It’s not just the age of the car that will determine your insurance cost – but your age too. If you’re a young, first-time driver you will pay a lot more than if you’re a 50-year old who has been driving for 30 years. This is true whether you’re driving used cars NI or brand new cars London.

Old and Dependable

There might be a mild stigma attached to buying old used cars, but that stigma is starting to wane as today’s cars are being built to higher standards in terms of both safety and features. Most cars built in the last decade can comfortably drive over 100,000 miles before requiring any substantial repair work and most used cars come with a complete driver history and inspection. A new vehicle will lose 20% of its value after the first year of ownership and when you also factor in how much you’ll save on the insurance costs, you’ll almost always come out ahead buying second-hand.



Jasper enjoys reading automotive news and reviews online. He independently write on auto industry recent happenings.


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