Here's What Happens When You Try to Insure an Older Car

There are benefits and drawbacks to owning an older vehicle. On the plus side, there's familiarity. You know your vehicle's quirks and are comfortable getting behind the wheel.

On the other hand, driving an older vehicle could mean missing out on certain features that not only make your trips more pleasant, but in some cases, safer.

Many newer cars, for example, offer lane departure and brake warnings. And while it can easily be argued that the age-old practice of paying attention on the road is a reasonable substitute for these features, they're ones you might eventually want to have.

But since car prices are so high right now, and it's an expensive time to sign an auto loan, you may decide to drive your older vehicle into the ground. That's not a bad financial decision. And it could save you a bundle on auto insurance.

You might pay a lot less to insure an older car

Because older cars tend to lack certain features, including safety features that newer cars have, you may be inclined to assume that insuring an older vehicle will be a costly endeavor. But usually, it's cheaper to insure an older car than a newer one for one big reason -- it's not worth as much money.

Multiple factors go into calculating your auto insurance rates. Some of those factors pertain to the type of driver you are. If you're a younger driver, or if you have a history of moving violations, you might pay more for insurance than someone with more experience and no moving violations on their record.

Your location will also help determine what you pay for car insurance. If you're in a city with a higher crime rate, you could pay more than someone who lives in a quiet suburb.

Similarly, the age and condition of your vehicle will play a role in calculating your auto insurance premium costs. If your vehicle is older, it's apt to be worth a lot less than a new vehicle. This means that if your vehicle were to get totaled in an accident, your auto insurance company would likely have to pay out a lot less than for a newer vehicle worth more money. So because of that, you may find that insuring an older car isn't as costly.

Additional ways to save on auto insurance

The age of your vehicle is something you can't control. Fortunately, you might reap some savings on auto insurance by having an older vehicle. But beyond that, there may be additional moves you can make to save on your premium costs.

First, shop around and compare rates. You may be surprised at how one insurer's offer can be far more competitive than another's.

Next, see if it's possible to snag a low-mileage discount if your car doesn't get a lot of use. The less your car is driven, the less likely you are to get into an accident, and that's something your insurer might reward you for. You can also see if it makes sense to sign up for a pay-per-mile insurance plan, where you pay a base amount but are then, as the name implies, charged for the specific mileage you clock.

An older vehicle may be a lot less expensive to buy insurance for than a newer one. So if you're able to keep driving an older vehicle, so be it. And if you're buying your first car and see an older one for sale, don't write it off. As long as it checks out at an auto shop, you may find that you don't end up missing the fancy features a newer model might offer you.