Does the Price of Car Insurance Go Down As a Car Gets Older?
The age of a car has a lot to do with the price of its insurance policy. While younger drivers pay more for car insurance, as a person gets older, the cost of insurance will decrease. As the car gets older, the driver’s physical attributes also change. For example, men tend to drive faster, cause more accidents, and commit more traffic violations than women. This is why women pay less for car insurance than men.
The Insurance Institute for Highway Safety tracks the prices of car insurance policies. In the United States, people between the ages of twenty-four and thirty-four pay the least in car insurance costs. Young drivers are deemed to be riskier by insurance companies because of their inexperience behind the wheel. In addition, older cars tend to have higher accident rates and higher premiums. While young drivers will likely experience a reduction in their car insurance rates, they should still shop around for the best deals.
The cost of insurance for a 15-year-old car will cost $466. Insurance for a twenty-year-old Ford Fusion costs nearly one hundred percent of the car’s value. Even more expensive, a twenty-year-old car can cost a whopping seventy percent of its value after an accident. And that’s before the insurance cost is factored in.