Compare Car Insurance for Older Cars: Rates, Discounts, & Requirements [2023]
The best car insurance type for an older car depends on several different factors. You may consider carrying minimum coverage if your car isn’t worth much, but if it's a valuable older vehicle, you may want to look into classic car insurance. Learn the details.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
UPDATED: Jun 16, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 16, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Some older cars need classic car insurance if they’re older than 20 years and rarely driven
- Cars that haven’t depreciated much in value should carry collision and comprehensive insurance
- Cars that break down frequently should carry roadside assistance coverage
The best type of car insurance for older cars depends on the overall value of your vehicle, and whether it’s a classic or not. You will always need to carry liability car insurance on your older car. Still, optional car insurance coverages like collision coverage or comprehensive coverage aren’t always necessary on an older vehicle that has significantly depreciated in value.
Read on to learn more about older car insurance. We’ll cover everything about older car insurance, such as required coverages, classic car insurance, optional coverages, and more.
Best Type of Car Insurance for Older Cars
When considering the best car insurance type for your car, determine the insurance requirements in your state. Then, you need to check its overall value and whether it counts as a classic. We’ve outlined how to pick the best car insurance for your older vehicle below.
Required Car Insurance for Older Cars
Almost every state requires drivers to carry liability auto insurance coverage on their vehicles. The coverage amount varies from state to state, but no matter how old your car is, you need to have liability insurance on it.
Liability insurance often includes bodily injury and property damage. These liability coverages pay for the other driver’s repairs and medical bills up to a certain amount.
No matter what type of older vehicle you drive, it’s best to have higher liability coverage than the minimum required amount, as it will better protect you if you cause an expensive accident.
Classic Car Insurance for Older Cars
Generally, if your car is older than 20 years, your insurance company may consider it a classic car. Older cars may be worth more than the depreciated value, especially if they are classic collector cars.
However, you must also meet the driving requirement for your car to be considered classic. You can’t use your classic car for everyday driving. Instead, classic car insurance is for rarely used older cars. Since older cars use a lot of gas and are less dependable on the roads, most drivers don’t use their older cars frequently if they’re classics.
Suppose you qualify for a classic car insurance policy. In that case, you should purchase it over regular car insurance, as a classic car policy better considers your car’s actual value, especially if you’ve had work done to it. Classic car insurance also offers total protection for your vehicle, including liability, collision, and comprehensive coverage.
Optional Coverages for Older Cars Not Depreciated in Value
If your car hasn’t significantly depreciated in value, it’s usually worth carrying more than the minimum coverage. Higher coverage levels ensure you’ll receive your car’s value after an accident, rather than just being protected from liability issues.
If your car still has good value, you might want to consider the following optional coverages. Most of these coverages will protect your assets in a car crash, whereas roadside assistance is good for breakdowns:
- Collision coverage. If you crash into another car or object, collision coverage will pay for repairs to your older vehicle.
- Modified car coverage. You should get modified car insurance coverage if you’ve had any work done to your older car, such as adding tinted windows or a custom paint job.
- Comprehensive coverage. Comprehensive coverage helps pay for repair costs from several non-collision incidents, such as vandalism, natural disasters, animals, and more.
- Roadside assistance. Older cars may break down more often. Roadside assistance helps with towing, jump-starts, and more.
If your vehicle is worth a lot or you’ve had expensive modifications done, you should consider adding on some or all of the above coverages. Otherwise, if your older vehicle is in an accident, you’ll have to pay for repairs yourself or consider totaling the car.
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Coverages to Consider Dropping for Greatly Depreciated Cars
If your car has depreciated in value so much that it is worth very little, you should consider dropping optional coverages and carrying only liability insurance.
The Insurance Information Institute recommends the following rule of thumb: If your vehicle is worth less than “10 times the premium,” you can consider getting rid of extra coverages like collision and comprehensive insurance. The Institute recommends this because what you’re paying for monthly rates will likely equal the car’s value in a few years.
If you’re unsure what your car is worth, you can visit a site like CarFax or Kelley Blue Book to check the value of similar used makes and models. You can also ask your insurance company to estimate your car’s value.
If you have a lease or loan on your vehicle, you’re probably required to have comprehensive and collision coverages. The company that gave you the lease or loan wants to protect its assets, so there’s usually a requirement in your contract to carry comprehensive and collision coverages.
You can only consider dropping additional required coverages once you fully pay off your vehicle. However, you should only do this if you meet the 10% above rule.
How to Find Cheaper Insurance for an Older Car
There are numerous ways to reduce your rates on car insurance for an older car outside of dropping optional car insurance coverages. If you don’t want to drop coverages, the following tips can help you save on car insurance:
- Use discounts. Take advantage of all available discounts, from paperless discounts to safe driving discounts.
- Raise deductibles. Raising your deductible will reduce your overall rate, but you’ll want to ensure you’re willing to pay the deductible if you get into an accident.
- Shop around. One of the best ways to find cheaper rates is to shop around and get quotes from different insurance providers.
If you don’t feel comfortable dropping optional coverages on your car, even if it’s no longer worth much, you can still save while keeping full coverage on your older car. If you think you’ll end up paying more than your car’s worth in insurance rates over a few years, it’s probably best to eventually cut your coverages or raise your deductible.
The Final Word on the Best Type of Car Insurance for an Older Car
The best car insurance type for your older car depends on whether it’s a classic and its overall value. If your vehicle isn’t worth much, you may be able to carry the bare minimum coverage. However, if your car is classic or still worth a significant amount, you should carry full coverage to avoid a financial loss after an accident.
If your car is worth more and needs fuller coverage, shopping around for insurance quotes can help you find a better rate for your older car.
Frequently Asked Questions
Do I need car insurance for an older car?
While car insurance requirements vary by state, it’s generally recommended to have insurance for all vehicles, including older cars. Even though older cars may have a lower market value, insurance can still provide important coverage, such as liability protection in case of an accident or coverage for damage caused by other perils like theft, vandalism, or natural disasters.
What types of car insurance coverage are available for older cars?
Several types of car insurance coverage are available for older cars, including:
- Liability coverage: This is the basic coverage that most states require. It helps cover the costs if you cause an accident that damages another person’s property or injures someone.
- Collision coverage: This coverage helps pay for repairs to your own vehicle if it’s damaged in a collision, regardless of who is at fault.
- Comprehensive coverage: This coverage helps protect against non-collision-related damages, such as theft, vandalism, fire, or damage from natural disasters.
- Uninsured/underinsured motorist coverage: This coverage helps protect you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damages.
Can I lower my car insurance premiums for an older car?
There are several ways to potentially lower your car insurance premiums for an older car:
- Choose a higher deductible: Increasing your deductible—the amount you pay out of pocket before insurance coverage kicks in—can lower your premium. Just make sure you can afford the higher deductible if you need to make a claim.
- Consider dropping collision coverage: If the cost of collision coverage exceeds the value of your older car, you might consider dropping it and relying on savings or purchasing another vehicle if an accident occurs.
- Explore discounts: Many insurance providers offer discounts based on factors such as safe driving history, low mileage, or bundling policies (such as combining auto and home insurance). Inquire with your insurance provider about available discounts.
- Maintain a good driving record: A clean driving record with no accidents or traffic violations can help keep your insurance premiums lower.
How can I compare car insurance for older cars?
When comparing car insurance for older cars, consider the following factors:
- Coverage options: Review the available coverage options and ensure they meet your needs and budget.
- Premium costs: Compare premium quotes from multiple insurance providers to find the best rate for the coverage you need.
- Deductibles and coverage limits: Evaluate the deductibles and coverage limits for each policy. Consider your financial situation and the value of your older car when choosing the appropriate amounts.
- Discounts and benefits: Inquire about any discounts or benefits offered specifically for older cars. Some insurance providers may offer specialized coverage or discounts tailored to older vehicles.
How can I compare car insurance for older cars?
When comparing car insurance for older cars, consider the following factors:
- Coverage options: Review the available coverage options and choose the ones that suit your needs and budget.
- Deductibles: Consider the deductible amounts for each coverage. A higher deductible can lower your premium, but it means you’ll have to pay more out of pocket if you make a claim.
- Premium costs: Get quotes from multiple insurance providers to compare premiums. Remember to consider the coverage provided, deductibles, and any applicable discounts.
- Policy features and terms: Understand the policy features, terms, and conditions of each insurance provider. Pay attention to any limitations or exclusions that may affect coverage for older cars.
- Customer reviews and ratings: Research the reputation and customer service of the insurance providers you’re considering. Read reviews and ratings from other policyholders to gauge their satisfaction.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.