This is Why New Cars Cost So Much To Insure

Sep 23, 2020 2 min read
This is Why New Cars Cost So Much To Insure

Driving something vintage has its advantages.

Having a brand new car might mean you deal with few repairs, and some of those could be covered by the warranty. You also don’t have to deal with anything weird or repaired in a questionable way by the previous owner(s). But, you also can pay a lot more for insurance. If you think it’s just a simple matter of a new car being worth more, this issue is actually more complicate, according to a recent auto insurance article.

As we’ve pointed out many, many times in the past few months, car theft has been a big problem in 2020 and it looks like it’s going to get even worse. If you think thieves are just looking for a 1998 Honda Civic, you’re sadly mistaken. According to this insurance article, criminals are targeting newer cars because they can get more for them on the underground market, thanks to the expensive parts used on them. This means insurance rates for newer cars have to be increased.

photo credit: Fiat Chrysler Automobiles

Speaking of expensive components, those sensors embedded in bumpers, taillights, etc. tend to get damaged in accidents. That means the cost of repairs can be shockingly high, even for a simple fender bender. Even those fancy ventilated, massaging seats and carbon-fiber parts add to the potential replacement costs if something were to happen to your car.

Probably the most surprising factor cited in the article is that many new vehicles can’t withstand a low-impact collision well. This is how a low-speed accident in a parking lot can turn into a repair bill that’s thousands of dollars for a new car, while an older car would maybe only have a dent and some scratches in the paint.

The article also points out how people with new cars carry full insurance coverage and often add extras like gap or full replacement coverage. If you have a really valuable classic car, you might carry quite a bit of insurance on it, but otherwise you’re saving a lot by not opting for full coverage and then some.

All this points out that driving an older car shouldn’t be looked down upon like it unfortunately can be in certain circles.


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