Driving around Hollywood Florida you might encounter things that will capture your attention. A brand-new convertible car, fresh off the lot, cruising down beachside, or a very tinted elegant luxury car that makes you question which celebrity is driving it. But on the other side of the spectrum, you will also notice a rusty orange car miraculously still running even though it looks like the bumper is clinging on to its last screw. Although the cars have different color, shapes, and sizes there is one thing all cars have in common, all cars age, and the age of the car affects the price of your auto insurance. Whether you are driving a brand-new car, or a car that you have had since The Police were still doing tours, the age of your car affects your auto insurance.
Out with Old, In with the New
To begin with, let us discuss how a new car can affect your auto insurance. Buying a brand-new car can be very appealing, from its new body style to its new car smell, consumers are more inclined to buy a brand-new model and car companies know that. Objectively, through continuous research and development, a brand-new car has the ability to keep the driver safer than older cars, and it only gets safer every year. With this statement alone, it creates an ideal situation for auto insurance companies to insure newer cars, but why does the premium increase? One key reason is the price auto-insurance companies pay for when the vehicle gets into an accident. Typically, with a newer car, newer and better technologies come in it. These new parts do not come cheap. For example, imagine a single bulb in the headlights needs replacing, that single bulb can cost up to $100, an immense increase compared to a bulb from an older car that cost $20. Furthermore, the technology that keeps the driver safer has parts and sensors that also can be expensive to replace. The “blind spot sensor” alone can cost up to $400. Although newer cars keep the driver safer than older cars with its innovative and incredible safety features, auto-insurance companies still analyze and assess their insurance based on how much it will be to replace or repair the new car.
On the other side of the spectrum, will an older car affect how premium will go up? There are two ways we can look into what an old car is. There is an old car that is called vintage or classic, these are your typical car enthusiast’s hobby. There is a different league for vintage cars when it comes to insurance, and the premium when it comes to the car varies on multiple factors. Then there are older cars. Older models tend to cost less when it comes to an auto insurance premium. There are variables that affect the premium when it comes to older cars. Variables such as the make and the model of the car. Are the parts for repairing the car cheap? Then there is the question of whether or not the car is often stolen. Typically, older cars have a higher chance to be stolen, either for parts or for the whole car. More often the case is, older cars tend to be cheaper to insure than newer cars.
In summary, comparing new cars to old cars when it comes to auto insurance, new cars tend to be more expensive to insure regardless of how safe the car is. Although new cars, with its top of the line safety features, are more ideal theoretically for insurance companies to insure, the cost of replacing or repairing these safety features can be costly. According to the U.S. Bureau of Labor Statistics, there is a 61% increase when comparing the cost of repairs for cars made in 2000, and cars made in 2017. Consequently, auto insurance companies have to assess the price of repairing or replacing these parts with your premium. When it comes to insuring older cars, it is, on average, cheaper. Used, or older cars are $105 on average cheaper based on comparing the premiums for old cars, and new cars across 8 auto-insurance companies.
Why choose Russell Insurance
Here in Russell Insurance, we do not discriminate your car’s age. New car or old car, we will look for the best possible auto insurance plan for you and your family. We are independent brokers, which means we are not restricted to one auto insurance company. We have the ability to look, and sort through multiple auto insurance companies, and we will tailor multiple options based on your preferences. We built our agency through family values, and we will treat you like our family, we would put your needs before ours. We understand that it takes tremendous time and effort to sort through multiple auto-insurance companies to find the ideal and cost-efficient one for you, and your family. Let us do the work! We provide an array of services and products that ranges from auto-insurance to commercial insurance. In addition, we also provide financial services to those in need. We are a one-stop-shop for you to save time and money so contact us now! We are located in 2507 Sheridan St. Hollywood Florida.