Caeva O'Callaghan | October 2nd, 2023
You’ve just got your license, and you can’t wait to buy your first car. But does the age of your vehicle affect how much you’ll pay for car insurance?
The age of the car you drive does affect your car insurance, but generally speaking the newer your car is the cheaper it is to insure.
There are some exceptions, so be sure to shop around for the best quote before you purchase your policy. Give us a call and we can help you find the best young drivers’ insurance.
In this article, we’ll cover the following questions:
- Does the type of car I drive affect my insurance?
- Why do some cars cost more to insure than others?
- How can I save money on my young drivers’ insurance?
If you’re a young driver, the type of car you drive will affect how much you pay for your policy. It’s a good idea to check out what kind of car will be most cost effective to insure before you set your heart on a make or model.
Does the type of car I drive affect my insurance?
Yes. Cars with larger engines are more expensive to insure: for example, the difference between a 1.9 and a 1.6 can be over €1,000.
Customisations including sound systems and in-car navigation can also push prices up, as this kind of technology is more expensive and requires a different set of skills to replace. Before you choose your vehicle, check the price of insuring it – as you may lose any savings you make on the vehicle on the insurance.
Instead of just looking up the make and model, write down all the registration numbers of the cars you like and enter those on the insurance website for a quote. Some versions of the same vehicle will be more powerful, more valuable, or have limited edition features. For example, saying you have a Volkswagen Golf is not specific enough. There are currently eight generations of this car, as well as electric versions. Within those generations, there are different options such as diesel or petrol, custom features, and more.
Why do some cars cost more to insure than others?
A major factor which impacts car insurance premiums is the age of the vehicle. Generally speaking, the newer the car the cheaper it will be to insure. Cars aged 5 years and less are cheaper to insure than cars aged between 5 and 10 years and beyond.
This is because more modern cars are often cheaper to repair, and mechanics are more likely to be able to find parts. Modern cars also have the latest safety features, and are less likely to be worn and in need of a service.
Small cars with a small engine size will be cheaper to insure. They’re easier to control on the road, and generally cheaper to repair or replace. So if you’re a young driver wondering what your first car should be, consider a small, reasonably cheap and safe little runner.
How can I save money on my young drivers’ insurance?
One of the best ways to save money on your driving insurance is to install a tracker. A black box, tracker, or telematics box is a small device which monitors your driving habits. When you take out a black box car insurance policy, your insurer will arrange for a third party to install the black box on your car. It’s pretty small – around the size of a mobile phone – and they’ll place it in a discreet location.
A tracker sends information on your driving habits (and how safe you are) back to the insurance company. Most insurers, such as AIG, offer cheaper car insurance because you have to choose the number of kilometres you expect to travel in a year. Driving safely helps you earn more kilometres, grow your no-claims bonus, and build a reputation as a sensible driver that will stand you in good stead next time you buy or renew your car insurance.
Got any more questions about getting young drivers’ insurance? Give us a call as soon as you can, and we’ll be happy to help you find the right policy for your specific circ*mstances. We are available Mon-Fri between 8.30am and 5.30pm on0818 224433or042 9359051.
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FAQs
Similarly, good student discounts can be another way to lower a teen driver's car insurance rates. It's also a good idea for new drivers to drive older vehicles, as new cars are often more expensive to insure.
Is an older car cheaper to insure? ›
In general, auto insurance for older cars may be cheaper than insuring newer vehicles of the same make and model if the used car is cheaper to repair or replace.
At what age is car insurance most expensive? ›
The Insurance Institute for Highway Safety reports that teen drivers are four times more likely to get into a car crash than drivers 20 and older. As a result, car insurance companies view young drivers as the most risky to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.
What year car is the cheapest to insure? ›
Generally speaking, the newer the car the cheaper it will be to insure. Cars aged 5 years and less are cheaper to insure than cars aged between 5 and 10 years and beyond. This is because more modern cars are often cheaper to repair, and mechanics are more likely to be able to find parts.
Should I keep full coverage on a 10 year old car? ›
Between 10 and 15 years after a vehicle's model year, full coverage is a poor investment. While the cost of full coverage by itself likely won't be more than what a car is worth, the cost of insurance is more likely to be higher than the value of the car after an accident.
Why is my insurance so high for an old car? ›
The older a car gets, the harder it may be to source these parts for repair, which can also drive up the cost of car insurance for older cars. Additionally, older cars may not have as many safety features as newer cars, which might increase the cost of auto insurance and reduce available discounts.
What cars are hard to insure? ›
In general, some companies may also refuse to sell a policy, or have restrictions on providing insurance, for vehicle types with the following general characteristics: vans carrying 12 or more passengers, camper vans, cargo vans, step vans, commercial use vehicles, customized / modified construction, those of ...
What car brand is the cheapest to insure? ›
While Mini cars are the cheapest to insure at $2,209 per year or $184 monthly, Subaru, Acura, Mazda and Volkswagen all check in with average full-coverage rates below $2,300 per year.
Who normally has the cheapest car insurance? ›
At the national level, the cheapest car insurance company is Auto-Owners, with average rate estimates of $39 per month for minimum coverage and $142 per month for full coverage, substantially cheaper than the national averages of $78 and $210 per month, respectively.
Which gender pays more car insurance? ›
In general, car insurance companies charge male drivers more for coverage because they're more likely to get into accidents. But while most states allow insurers to consider gender when setting rates, your age, location, insurance provider and driving record usually make a bigger difference.
Age and car insurance
As a general rule of thumb, you can expect to pay the most for your car insurance when you're under 25. Once people are over 25, they tend to find that the cost of their car insurance starts to fall. The price usually declines gradually between the ages of 25 and 60.
What age range pays most for car insurance? ›
Based on our research, car insurance costs the most for 16-year-olds. Young drivers can pay thousands of dollars more than older, more experienced drivers. Car insurance rates decrease in your 20s and can continue to go down into your 50s.
Which insurance is best for a car after 10 years? ›
Whether one has bought a new or used car, it is better to purchase comprehensive car insurance instead of just a third-party policy. This is because buying comprehensive insurance for an old car online provides coverage for accidental damages along with the third-party liabilities.
What is the best insurance for old cars? ›
Hagerty, Grundy, American Collectors, American Modern and Heaco*ck provide the best car insurance for old cars. These companies are the best options for classic car insurance because of their fair rates, accessibility and experience in the industry.
Is a 16 year old car too old? ›
Cars older than eight to 10 years will be a riskier option, depending on the driving and maintenance history, while vehicles over 15 to 20 are usually nearing the end of their service lives.
Is a 15 year old car too old? ›
Cars older than eight to 10 years will be a riskier option, depending on the driving and maintenance history, while vehicles over 15 to 20 are usually nearing the end of their service lives.
What type of car has the cheapest insurance? ›
Cheapest Vehicle Types To Insure
Generally, drivers receive the most cost-effective protection when they select smaller SUVs and minivans. On our list, compact or crossover SUVs such as the Subaru Crosstrek, Mazda CX-30 or Jeep Wrangler are among the most affordable cars to insure.
Is it cheaper to keep older car? ›
Since vehicle values depreciates with age, your older car will often cost less to insure than a newer vehicle. Moreover, as your car ages, it becomes cheaper to replace in the unfortunate case it gets totaled - so you don't need to purchase additional insurance coverages like comprehensive or collision coverage.
Is it worth having comprehensive insurance on an old car? ›
Do I need comprehensive insurance on an old car? If you don't have a loan or lease on your car, comprehensive insurance likely isn't required. And if the vehicle isn't worth much, it may not make financial sense to keep the coverage.
