People may choose to own older vehicles for a variety of reasons. Older vehicles are generally much cheaper both to buy and insure than newer vehicles, while others are known for their uniqueness.

Our San Angelo car insurance agency may insure your older vehicle, but it depends on a variety of factors in addition to the vehicle’s age. For example, older vehicles must still be able to pass inspection and operate safely if use is intended. Vehicles whose parts are no longer replaceable may also have trouble finding coverage.

Mileage also factors in. Car insurance may be higher for vehicles with high mileage, which most older vehicles accumulate over their years of use.

Difference Between Old Cars and Classic Cars

The primary difference between classic cars and old cars are their value. Classic cars are typically older cars that are no longer made and perhaps had a limited time on the road or other unique features. Both types of vehicles can be insured, but the type of insurance offered varies.

Older vehicle’s car insurance premiums are primarily calculated on mileage, age and the value of the vehicle accounting for depreciation. So, as the value of the vehicle goes down over time, so will the amount of compensation you can receive after an accident.

Classic car’s car insurance premiums are calculated based on mileage, age and an agreed value amount. This amount does not account for depreciation. In fact, it takes in the value of the classic car’s condition, additions, and replacement cost.

Since classic cars tend to be worth more, they are generally cheaper to insure than basic old vehicles.

Is It Worth Insurance an Older Car?

Sometimes, paying monthly premiums on car insurance amounts to more than the car is worth. As depreciation chips away at the value of a vehicle, coverage becomes less necessary. While it’s illegal to drive uninsured, it’s sometimes more cost-effective to invest in a new vehicle rather than insuring an old vehicle whose value has depreciated.

Classic cars, on the other hand, are often expensive items of nostalgia and should be covered with the correct amount of insurance. Even if the classic car rarely hits the road, it should be insured with comprehensive and liability coverage to protect it and the policyholder against damages to others and to the vehicle due to theft, fire, vandalism and more.