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Is car insurance typically cheaper on new models?

C

Clipper

New member
My friends youngest sister (she lives with her) who turned 21 this year is buying her first car for $26,000. I am not sure how as she is only working at a coffee shop and does school. Anyways, her insurance is going up. I always thought that newer cars resulted in cheaper insurance because they don't typically have any major problems.
 
I got a brand new car in 2015 and my insurance went up by $25 a month. Now I am not sure if this is because of the make, model, color, or what but it went up for me.
 
Its usually more expensive. First, loan companies require you have to have full coverage instead of just liability insurance. This is so insurance will pay for the repair of your car even if you're the one at fault. Second, many newer cars don't yet have a lot of aftermarket companies making parts for them so repairing them requires buying the more expensive parts from the car manufacturer.
 
Cluepon covered it. I was going to mention that it is likely down to needing full coverage. I know before I got my car new, my insurance was WAY less.
 
Wow I never knew this and it sounds so backwards to me too! Like if your car is old, it is more likely to malfunction or get into an accident when you think about it.
 
Lisa said:
Wow I never knew this and it sounds so backwards to me too! Like if your car is old, it is more likely to malfunction or get into an accident when you think about it.
Click to expand...

Yeah I always thought this. My brother recently got a new car. I think just a year and a half ago and it already has break issues. Figures. Brand new and defective!
 
Your insurance company should be able to justify any increase to your premium.
If they can't then they don't know the job.

New cars are more expensive because of the cost of parts. Older cars are cheaper on insurance. This has always been the case in the UK. A newer car costs more to buy, therefore it's seen as a higher risk of the insurers losing money if it's written off and also it's more nickable if it's newer.

If you have owned a car for a long time this will get you a discount because you're used to the car.

Therefore, they put your premium up when you buy a new car because the statistics show more accidents happen to people who have just bought a car and are not necessarily used to it.

But no one explains this to you.
 
Your car is more at risk of breaking down which is an issue for recovery services not insurance. It's no more likely to have an accident than a new one. But it's worth less, which is why it's cheaper to insure.
 
One thing you might want to consider especially with a newer car, if you are a very safe driver with a good accident history, is to find out if your insurer has one of those safe driver programs. They send you a small device which plugs into the diagnostic port and reports hard braking and acceleration, to verify good driving habits. You get a cheaper rate by doing that.
 
This is still being tested in the UK and they only use it for younger drivers.

There are specialist insurers who recognise the black box data.

There was a stage where female drivers were cheaper than male. This was amended back in 2014 and the balance restored.

There was no proof of a greater or lesser risk. They still give a large insured plus spouse discount but again I am not convinced the customer profile is necessarily better.

Insured Only policies pay a premium. Doesn't make sense but they only go on statistics.
 
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