How does the age of your car affect insurance rates?

By HUB SmartCoverage Team on February 28th, 2018

When it comes to car insurance, there are many factors at play that determine how much you have to shell out. As logic might tell you, the age of your car is one of these; however, chances are it won’t affect your premium in the way you might imagine.

Insurers tend to look at your VIN to garner information about your car, and determine how high to set the bar for your insurance.

New models

In most cases, you may expect that the newer a car is, the more it costs to insure. While the market value and collision repair on these cars can sometimes be pricier, leading to higher insurance rates, new models also tend to have additional features that can drive down insurance.

Many new cars are installed with modern safety features, including anti-theft devices and GPS tracking systems. These factors can act as a deterrent to potential thieves and can grant you a discount with some insurers.


It might be surprising to find out that, due to the rise of built-in anti-theft features, it is older models that are more likely to be stolen. Insurance Bureau of Canada’s (IBC) top 10 most stolen cars of 2017 reveals that the older the car, the more likely it is to be stolen. This is especially the case if you’re the proud owner of a Ford pickup truck.

However, there are methods that you can apply to lower the risk of your car being the victim of theft, and in turn, reduce your insurance premium. You can install additional anti-theft technology to your car including the standard steering wheel lock, auto-immobilisers or a car alarm.

Old models

Aside from the peril of being stolen, older cars are also at risk of higher insurance due to repair costs. While it may be cheaper to source parts for a damaged car, an older model is more likely to be written off as the result of a collision, and, you guessed it, this can see your insurance premium jump up. Usually, this is because the damage caused to an older vehicle would cost more to fix than it would cost to scrap and replace it.

Therefore, if you are buying a used car it is vital that you check your car’s VIN and do your research. Has your car ever been salvaged? This could change the type of coverage you need and, in turn, result in a higher insurance premium.

Antique cars

When it comes to antique or classic cars insurance, coverage can be a little different. Due to the rarity of many parts, quite often, regular insurance companies aren’t able to provide adequate coverage. Instead, it is best to search the market and find a company that specialises in antique car insurance.


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