Car insurance

How does my car’s age affect my insurance rates?

Car buyers often wonder whether newer cars or older cars are cheaper to insure. There’s no simple answer to this question: new cars save you money in some respects, old cars in others. Moreover, it depends largely on what kind of insurance coverage you opt for. Here’s a brief overview of how the age of your car affects what you pay insurance.


Mandatory coverage

In Nova Scotia, all drivers must have third-party liability coverage and accident benefits coverage.


Third-party liability insurance covers the other driver’s medical bills and repair costs if you’re at fault for an accident.


Accident benefits insurance covers your own medical treatment and income replacement after an accident, regardless of whether or not you’re at fault.


If you only purchase basic coverage, you aren’t covered for damage to your own vehicle. As a result, your car’s year will affect your insurance rates only insofar as it reflects what kind of safety features it has.


Newer cars tend to have more extensive and robust safety features, which decrease your risk of injury in the event of an accident.


Collision coverage

Most drivers opt for at least some form of collision coverage. This insurance covers the costs involved in repairing or replacing a vehicle in the event of an accident.


Collision coverage tends to cost more for newer cars simply because they usually have a higher price tag and therefore cost more to repair and replace. However, the specific model is sometimes the more relevant factor: a ten-year-old Porsche is likely to have higher repair costs than a new Toyota Camry for comparable damage.


Comprehensive coverage

Comprehensive insurance covers your car against theft and damage caused by events other than accidents, such as vandalism, hail and falling objects.


Newer cars, even when more expensive, are often less at risk of being stolen or vandalized than older cars, and this results in lower rates for comprehensive coverage. This is because newer cars tend to come with more advanced anti-theft features than older generation cars.


If you have a car that’s too old to have an alarm system, an immobilizer and other anti-theft features, this can raise the costs of your comprehensive coverage.


However, as new cars often cost more to repair, this can swing the pendulum the other way and raise premiums for comprehensive coverage.


Car insurance in Halifax, NS

At Eisenhauer Insurance, we help you get cheap coverage that meets your personal needs, whether you have an old or new car, and even if you’re a high risk driver. For more information about our services, or for a free quote on car insurance, contact us today.