Does An Older Car Cost More To Insure?

Does an old car cost more to insure?

All Ontario drivers are required under Ontario law to purchase automobile insurance if they intend to drive on public roads. However, all cars and drivers are different, so naturally, the amount you’ll pay for your insurance will differ from others and is ultimately determined by several factors, including the make and model of your car. With that said, there seems to be a bit of confusion about why older cars cost more to insure than newer vehicles.

Therefore, the team at aha Insurance is going to answer this question as well as others we’re frequently asked by our customers, so you can have a better idea of how your insurance premium is calculated. For more information, keep reading.


Frequently Asked Questions

Why is insurance higher for older cars?

In Ontario, the cost of car insurance for older vehicles can be higher for a variety of reasons, including:

  • Increased accident risk: Older vehicles have more deterioration and may lack the same safety devices as modern models. This increases the likelihood of collisions. 
  • Higher theft risk: Older models may lack anti-theft features found in new cars, putting them at greater risk of theft. This raises the probability of insurance claims for theft, which can increase insurance costs.
  • Higher repair costs: Parts and wage costs for repair work on older cars may be significantly greater than for modern vehicles, mainly if the vehicle is no longer manufactured.
  • Limited availability of replacement car parts: New parts for older cars may be more challenging to obtain or no longer available in some cases, making repairs more expensive and time-consuming.


What are the factors that affect your auto insurance?

As we briefly mentioned, there are several factors that impact how much a driver will pay for their car insurance premiums. Here is a closer look at some of these variables in more detail:

  • Your driving history
  • Your driver’s license class
  • If you’ve had previous driver’s education
  • Your insurance background
  • Your demographic information, including age and gender
  • Where you live and how much you use your vehicle 
  • How far do you drive each year
  • Your vehicle’s make, model, and year
  • The value of your car
  • Devices for security or damage mitigation
  • Your insurance choices, such as coverage, restrictions, and deductibles


What is the best insurance for classic cars?

A classic car is one that is at least 25 to 30 years old. If you own a classic car, you’ll be happy to know that insurance companies offer specialty insurance policies for vehicles. Ultimately, the best insurance for classic cars in Ontario will be determined by the owner’s requirements and specific circumstances. However, there are a few things to think about when looking for classic car insurance:

  1. Coverage for Agreed Value: Because classic cars are often one-of-a-kind and can appreciate in value over time, it’s critical to have insurance coverage that represents the vehicle’s true value. This allows you to agree on the value of your car with your insurance provider, which can help make sure you get reasonable pay if your vehicle is stolen or damaged.
  2. Usage Restrictions: Classic cars are rarely driven on a daily basis and are usually only driven on special occasions or for special events. So, think about how often you plan on driving your vehicle throughout the year.

Drivers can also opt for additional insurance policies that can make their car insurance more comprehensive and thorough based on their needs. As such, the best thing to do is reach out to your insurance company for assistance in determining what your needs and values are.


What age is car insurance most expensive?

Car insurance is typically the most expensive for young and inexperienced drivers under the age of 25. This is because younger drivers are statistically more inclined than older, more experienced drivers to be involved in automobile accidents. Insurers base premium costs on the level of risk that a driver poses. Younger drivers are frequently regarded as higher risk because of their lack of experience, and as a result, they may face higher insurance premiums.

What makes cars cheaper to insure?

Several factors can reduce the cost of car insurance. Here is a closer look: 

  • Cars with features like airbags and anti-lock brakes can help lower your insurance costs.
  • Cheaper cars with a lower risk of theft or accidents.
  • A clean driving record means lower premiums.
  • Cars in urban areas with higher theft or accident rates are more expensive to insure.
  • Bundling your insurance policies with other types of insurance can also help you save money on your premiums.
  • Shopping around with the aid of an insurance broker can also help you lower your insurance costs, as they often have access to several insurance company policies rather than one.


The bottom line

Ultimately, the aim of insurance is to provide drivers with protection and financial security, and the cost of premiums is determined by the level of risk involved. When assessing the amount they will charge for coverage, insurance providers consider a variety of factors, including the age and condition of the vehicle, the driver’s history, and other variables that may impact the potential for accidents or insurance claims. So, while the age of your vehicle will influence your costs, it is not the most crucial variable that insurance companies are looking at.

The team at aha Insurance in Ontario has over 20 years of experience in the insurance industry and is here to supply you with high-quality solutions, irrespective of the policy you’re looking for. We recognize that every client is unique, which is why we are committed to providing personalized insurance policies which suit your wants and safeguard your assets. We’re here to make your experience with us as simple and seamless as possible, whether you’re getting an assured quote in 3 minutes, purchasing and handling your policy, or filing an insurance claim.

You can reach us at 1-855-242-2440 or send us an email at any time.


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Boil half an egg?

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