Car Insurance for Older Cars
Erie and Westfield have the cheapest car insurance for most older cars, but you may need classic car insurance if your older car is a collectible. Getting the right coverage is important for a car of any age. Here’s what you need to know about car insurance for older cars.
Average cost of car insurance for an older car
What you pay to insure an older car depends on factors such as your driving record and ZIP code, as well as your vehicle’s age and value.
That said, the average cost of car insurance for 2010 model year vehicles with full coverage is $180 a month. That’s 14% less than the average cost of full coverage for 2015 models and 26% less than it is for 2020 models.
Older car insurance rates by model year
| Model year | Monthly insurance rate | Average vehicle value |
|---|---|---|
| 2020 | $245 | $17,949 |
| 2015 | $210 | $10,785 |
| 2010 | $180 | $4,767 |
Full-coverage rates are for a 30-year-old male with a clean driving record and good credit. Your rates may vary.
Cheapest car insurance companies for older cars
Erie and Westfield have the cheapest insurance rates for older cars, based on our analysis of vehicles from the 2010 model year.
Erie’s full-coverage rate for 2010 models averages $109 a month, which is the cheapest in the nation. Westfield has the cheapest rates on liability-only coverage for 2010 models, $48 a month.
Erie and Westfield are midsize companies that are only available in a limited number of states.
Among widely available large companies, State Farm has the cheapest full-coverage and liability-only insurance rates for older cars.
Full coverage includes liability, uninsured motorist, collision and comprehensive (comp) coverage. A liability-only policy is the same policy without collision and comp.
Cheapest full-coverage car insurance for older cars
| Company | Monthly rate |
|---|---|
| Erie | $109 |
| Westfield | $114 |
| Auto-Owners | $117 |
| American Family | $124 |
| Country Financial | $133 |
| State Farm | $145 |
| GEICO | $169 |
| Travelers | $177 |
Rates are for a 30-year-old driver with a clean driving record and good credit. Your rates may vary.
Cheapest liability-only car insurance for older cars
| Company | Monthly rate |
|---|---|
| Westfield | $48 |
| Erie | $49 |
| Auto-Owners | $61 |
| American Family | $68 |
| State Farm | $73 |
| Country Financial | $73 |
| GEICO | $98 |
| Travelers | $102 |
Rates are for a 30-year-old driver with a clean driving record and good credit. Your rates may vary.
How much car insurance you need for an older car
You may not need collision and comp, or full coverage, for an older car, but the rest of your car insurance needs are mostly the same for older and newer models.
Collision and comp cover your car for damage or theft, up to your vehicle’s value. Neither is required by law, but lenders typically require both for a loan. This makes them optional for an older car you own outright.
Your car’s age does not affect the rest of your insurance needs.
For example, most states require you to have liability coverage to legally drive a car of any age on public roads. Some states also require uninsured motorist coverage and/or personal injury protection.
For these coverages, the minimum limits your state requires are just a starting point. Depending on your financial situation, you may need higher limits and/or additional coverages.
Car insurance needs for an older car
| Coverage | Required or optional |
|---|---|
| Liability | Required by law in most states. Consider higher limits for more financial protection. |
| Uninsured motorist | Required in more than 20 states, optional in most others. |
| Personal injury protection | Required in more than a dozen states, optional in most others. |
| Collision | Only required if you have a car loan. Worth it for any car valued at more than $5,000. |
| Comprehensive | Only required if you have a car loan. Worth it for any car valued at more than $5,000. |
When to drop full coverage on an older car
It’s usually worth dropping full coverage on an older car if its value is less than a few thousand dollars, as long as there’s no loan on it.
The more your car depreciates, the less you’ll get from the insurance company after an accident or theft.
For example, if your car is valued at $3,000 and you have a $1,000 deductible, the most the insurance company pays to repair or replace it is $2,000.
The exact cutoff point for dropping full coverage depends on how much you’d be able to afford to repair or replace your car on a moment’s notice.
For some people, spending $5,000 to replace a car with no assistance from their insurance company is not a big deal. For others, getting an insurance company’s help to replace a car valued at $3,000 may avert a financial hardship.
If your car’s value is less than your deductible, or only slightly more, it’s definitely time to drop the full coverage.
You can find your car’s approximate market value online on sites such as kbb.com. However, insurance companies use different sources to determine your car’s value.
How much can I save by dropping full coverage for an older car?
The good news about dropping full coverage on an older vehicle is that it can nearly cut your car insurance rate in half.
For example, the average price of car insurance for 2010 model year vehicles drops from $180 a month to just $97 a month by removing collision and comp. That’s a savings of 46%.
Monthly car insurance rates for 2010 vehicles
| Vehicle | Full coverage | Liability only | Savings |
|---|---|---|---|
| Chevy Equinox | $175 | $95 | 46% |
| Ford F150 | $177 | $100 | 44% |
| Honda Civic | $185 | $102 | 45% |
| Toyota Camry | $184 | $103 | 44% |
| Volkswagen Passat | $191 | $97 | 49% |
| Average | $180 | $97 | 46% |
Rates are for a 35-year-old male with a clean driving record and good credit. Your rates may vary.
When to get classic car insurance for an older car
Classic car insurance is a specialized insurance product created for older and modified cars that are only driven occasionally.
You typically need to have a separate car for daily use and park your older car in a garage or carport to get it.
Some classic car insurers require the car to be at least 25 years old. Others insure older cars of any age that have been restored or modified.
Classic car insurance providers often insure your vehicle at a value that you and the insurance company agree upon. A vehicle’s agreed value is usually higher than its standard market value.
For example, the market value of a convertible 1992 Chevrolet Camaro Z28 is $3,600, according to Kelley Blue Book. However, if you’ve restored and/or customized your 1992 Camaro, you may be able to sell it for $10,000.
If your Camaro is stolen or damaged, standard car insurance only covers it at the lower amount. Classic car insurance covers it at the higher amount.
Hagerty and Grundy are among the best-known classic car insurance providers. An agent from most standard car insurance companies can usually get you a classic car insurance quote.
Frequently asked questions
Depreciation is the main reason why older cars are cheaper to insure. As a car loses value, it reduces the amount an insurance company may have to pay to replace it if it is totaled or stolen. This makes it less risky, or cheaper, to insure.
Yes. Full coverage is available for older cars. However, if your older car has a low market value, you won’t get much from the insurance company if it’s totaled or stolen. This is the main reason to drop full coverage for an older car with a low resale value.
Maybe. Full coverage is only worth having for a 15-year-old car if its market value is more than a few thousand dollars. Otherwise, you may be better off dropping full coverage and using the money you save on car insurance to buy your next car.
Standard car insurance covers cars of just about any age driven for regular or semi-regular use. Classic car insurance is designed for collector cars that are only driven on an occasional basis, such as to car shows or on pleasure drives.