When it comes to car insurance, the age of your vehicle can have a significant impact on the cost of your premiums. Generally, car insurance rates decrease by 3.4% for every year that your vehicle ages. This means that an eight-year-old car is approximately 25% cheaper to insure than a brand new one. However, this isn't always the case, as classic cars can be substantially more expensive to insure than newer models.
For example, a 1952 Thunderbird can cost three or four times more than insuring a new car. When shopping for a used car, it's important to make sure you're getting a reliable vehicle. Many dealerships offer full inspections and certified used vehicles, so you can be sure you're getting a quality car. If you're looking for coverage for driving under the influence of alcohol, accidents, or other factors, you may be eligible to get car insurance through the New York Auto Insurance Plan (NYAIP). Even with the highest limits, liability coverage will not meet your expectations as it only covers damage to the property and bodily injuries of other drivers and your car, not to you or your car. In order to qualify for classic car insurance, your classic vehicle must be a certain number of years old.
To make sure you're prepared for any situation, GAP insurance (which covers the difference between the current value of your new car and the amount you still owe the lender if the vehicle is seriously damaged or totaled) and new car replacement coverage are great types of insurance options to add to your policy (in addition to comprehensive coverage). If someone steals your car and it's never found, comprehensive coverage will take care of it. Personal injury protection will cover your medical bills and expenses if you are injured in a car accident, up to the limits of your policy, no matter who is at fault. The cost of car insurance depends on many factors such as the make, model and type of vehicle you are going to insure, as well as your driving history. New York auto insurance laws require car owners to have liability insurance, personal injury protection (PIP) and bodily injury coverage for uninsured motorists (UMBI).
Ultimately, a used car that has been serviced regularly with oil changes, tire rotations and brake revisions offers much better value than a new vehicle. This policy approval freezes your car's premium year after year until you add or remove a vehicle or driver from your policy or change the location where your car garage is located. Keep reading to learn more about what affects rates and the ways you can find affordable car insurance for a new car.
