When shopping for a vehicle, price is likely a top consideration in your buying decision. As such, make sure you take into account all the costs associated with the investment. This includes auto insurance, as it will be a monthly expense for as long as you own the car. Understanding how policy premiums differ between brand new vehicles and older models can help you pick the right vehicle for your circumstances.

What Factors Affect Auto Insurance Costs for New & Used Vehicles? 

Amount of Coverage 

Regardless if you’re insuring a new or used car, the more coverage you add to your policy, the more you can expect to pay. Because they have a higher market value, it’s common to increase the amount of protection carried on new vehicles. Liability coverage may be sufficient for an older vehicle with depreciated value. However, with new cars, people typically also buy collision and comprehensive coverage to help pay for repairs or replacement in the event of a loss. Lenders will require this coverage if your vehicle was financed.

Another option for higher-value cars is gap coverage. Should your vehicle get totaled in an accident while you still owe on a loan or lease, you’ll be covered for the balance between its actual cash value and your remaining financial obligation.

Potential for Theft

Some cars are more likely to be the target of thieves than others. Auto insurance companies consider this when calculating your premium. Although new vehicles may be attractive, they tend to be targeted less frequently by thieves. This is because most models manufactured today come with advanced anti-theft devices and GPS tracking. On the other hand, older cars are stolen more often because they’re easier to access and harder to track. Thus, coverage could end up costing more for an older model with a high theft rate.

Price of Repairs

Modern safety features in new vehicles, such as automatic braking, backup cameras, lane departure warnings, and blind-spot alerts, can help reduce the risk of accidents. For this reason, some insurers may discount coverage costs for having this technology. Alternatively, other providers might raise rates, as it will be more expensive to repair or replace these components if they’re damaged in an accident. In this case, an older model would be less to insure.

Whether you decide to purchase a new or used car, turn to Metro Insurance Agency for high-quality auto insurance options. They’ll complete a personalized assessment of your unique coverage needs and help customize a suitable policy. For more than two decades, they’ve proudly provided the residents of Waynesboro, VA, with reliable products and competitive rates. Call (540) 942-2200 to request a quote, or visit them online to learn more about the various insurance solutions they offer.