Which is Cheaper: Car Insurance for Old Car or New One

The insurance company looks at several factors while calculating insurance prices. The age of the car is one of them.

It is typically considered that old cars have cheap car insurance, but the insurance rates depend wildly on a large number of factors. Insurance prices can differ widely between old and new vehicles.

Car Insurance In Case Of New Cars

One may think that new cars have higher insurance tariffs. This seems true because the market values of new cars are comparatively higher than that of old cars. The new cars are often more expensive to repair due to the scarcity of spare parts.

Car Insurance In The Case Of Old Cars

Older vehicles typically have cheap car insurance because they are less valuable as compared to new vehicles.

Due to devaluation, your 2015 Innova will have a cheap car insurance rate as compared to a much recent model of the same car. The insurance company has less liability when the car has a low market price.

Other Components


HL Assurance Singapore rates also depend on the kind of place you stay in. For example, Accident-prone places tend to have a higher car insurance rate. Even a theft-prone area has a higher car insurance rate. If a car has the latest security system and gadgets, then it often drives down the insurance rate. One should keep in mind that new cars are very less targeted by thieves as they retain good security and alarm system. Whereas old cars are more prone to theft as they are simpler to dismantle and the thief can sell the parts separately for gain leading to cheap car insurance It’s also easier, to sum up, an old car, which means the rate of repairs exceeds the substitute cost. New cars are more valuable than old cars, which makes the insurance company responsible for covering repairs up to a bigger proportion.

Also, safety measures play an important role in deciding the insurance rate. New vehicles have far better safety measures and new gadgets that ensure better safety, like backup cameras and automatic brake networks. One might assume this will lead to a cheap car insurance rate, but that does not always happen. Because when one of these safety measures is hindered, the HL Assurance Singapore has to spend a havoc amount to money to repair it.

Old Cars Are More Reliable Than New Cars

 Buying a new vehicle always attracts customers more because it feels really good to own the latest vehicle available in the market. Also, the cars of today are well assembled and are powerful. But a used car that has been well maintained with regular tire and oil inspections and perfectly working brakes provide to be of more value than a brand new expensive car.

And this older vehicle provides significantly cheap car insurance rates. Keeping all the above points in mind we can say-

In the case of new cars

  • They have an elevated IDV (Insured Declared Value). So the insurance premium is higher.
  • New cars have the latest safety devices, implanted, and the best gadgets. In this perspective, the theft rate will be lower, which will often lead to cheap cat insurance.
  • However, the repairing cost is higher, so that results in a high insurance rate
  • They are not prone to deteriorations or breakdowns, which contributes towards the cheap car insurance group.

In the case of old cars

  • IDV (Insured Declared Value) is low, so the premium is lower.
  • Old cars are theft prone as they do not have a good security or alarm system. Also, it is easier for thieves to disassemble and sell the car parts separately.
  • Repairing old cars is a lot cheaper.
  • Old cars are much more prone to complete breakdown, which leads to a high premium rate.

Therefore, we can observe that different factors are responsible for the value of car insurance rates. But there is another completely different scenario Insurance of vintage cars. When we discuss the insurance of old cars, we generally talk about old used cars. But when it comes to vintage classic cars, the case is entirely different.

Choosing an insurance policy for a vintage car is completely different from choosing the policy of that of an ordinary used car. It depends on the following factors

  • Age of the car
  • The current state of the car
  • Availability of parts of the car
  • Cost of repairing

Such owners usually have a third-party insurance policy as they are too expensive for a comprehensive insurance plan.

How to Get Cheap Car Insurance

Before getting a car insurance plan, be it for an old car or a new one, one should always compare prices of the plans online so that he/she can opt for a more efficient cheap car insurance plan. After all, everything always comes down to the person’s budget.