One factor that auto insurance companies take into consideration when determining your rate is how old your car is. But is it cheaper for auto insurance companies in Illinois to insure cars that are older or cars that are newer? There is often a huge discrepancy when it comes to looks, features and safety between old and new cars. Typically speaking, older cars are cheaper to insure because they are less valuable. However, this rule is not applicable to every situation. Here’s what you should know about insuring old versus new cars.
Vehicle Value Helps Determine Insurance Cost
Depreciation plays a big role in your car’s make and model in relation to how much auto insurance will be. Less valuable cars mean that the auto insurance company in Illinois has a lower liability risk. If you get into an accident, it is a better idea to put your money towards a new vehicle rather than trying to repair your older vehicle.
Take into Account Repair Costs
Although brand new vehicles are nice in many respects, they also cost more money to repair if you get in an accident. In fact, within the first year of purchasing a car, the value depreciates by as much as 30 percent. If you get into an accident in a newer car, the damages will likely be more expensive to repair than if you were in an older car.
Year Isn’t the Only Factor to Consider
Auto insurance companies in Illinois take into account many factors when they determine price. Driving record, marital status, vehicle usage, age and gender are all taken into consideration. If you’re looking for affordable auto insurance, look no further than Accurate Auto Insurance! Get an instant quote on our website today.
