If My Car Is More Than 15 Years Old, Does That Affect The Cost Of My Car Insurance?
Caeva O'Callaghan | September 2nd, 2020
Classic cars can be a big investment, or just have sentimental value. But will the age of your car affect how much you pay for your car insurance premium?
Yes, it will do. The age of your car will have an impact on your car insurance, and older cars are more expensive. Whether the monthly premium you pay will amount to more or less depends on a few factors. These include the make and model of your vehicle, as well as how old it is.
In this article, we’ll answer the following questions:
- Are older cars cheaper to insure?
- Is buying a new car better for car insurance?
- Are classic cars more expensive to insure?
Unfortunately cars that are over 15 years old tend to be more expensive to insure. If you have a classic car you love, it may be worth buying specialist classic car insurance. We can help you get the right cover for you and your vehicle.
Older cars are a higher insurance risk
If you own an older vehicle you may find it difficult to find an insurer who will cover your car. Even when you do find an insurer willing to cover your vehicle, you may find yourself faced with incredibly high premiums.
This is because older cars pose a higher insurance risk. This is for a number of reasons:
- It’s harder to source parts for older cars – repair and maintenance is more expensive
- Fewer mechanics know how to fix older cars – finding the labour will be difficult
- Older cars are at higher risk of theft – and not just classic cars, often opportunistic thieves just want a “knock-about” or getaway car
- Lack of safety features – modern, safer cars have fewer personal injury claims
Surprisingly enough, roadworthiness is not an issue here. In many cases a company will offer a policy regardless of whether or not the car in question has a valid NCT certificate.
The record of Irish personal injury payouts are a major factor in the industry’s reluctance to insure older cars. Payouts for soft tissue injuries here are more than three times that seen in Britain, and account for about 80% of all payouts.
Soft tissue injuries occur when the muscles, ligaments, or tendons in the body are damaged. These include sprains, strains, and contusions, as well as whiplash. Older cars are less likely to have airbags or seatbelts that adhere to modern safety standards, making the risk of such injuries higher.
Insurance companies don’t like older cars
Many insurance companies won’t take on a vehicle that is more than 10 years old. And, unfortunately, the fewer the insurance companies bidding for your business, the higher the price you will pay.
When TheJournal.ie asked car insurance providers about their policies on insuring older cars, the responses were slightly unclear. They asked: what is the company’s policy on cars aged ten years or older, and if it won’t insure such a car, why not?
Out of the seven separate insurance providers they surveyed – Liberty, Axa, Aviva, 123.ie, AIG, Allianz, FBD, and two intermediaries/brokers, the AA and Chill – only three returned a response. All three were willing to insure older cars.
For example, Liberty private and small commercial vehicles up to 20 years of age. They can also insure vans up to 25 years old. Aviva said that since summer 2015 it had been refusing cars aged 14 years or older “because of claims experience” with these vehicles. But, existing Aviva customers could renew their insurance on their aging car. Or, they could insure an older vehicle should they buy one.
Specialist classic car insurance
If you are the owner of an older car you may feel like the only options available to you are to accept sky-high premiums or buy a newer car in order to benefit from cheaper insurance quotes.
Luckily, you have a third option. Specialist classic car insurance is available for those who enjoy their older cars. If you want to keep your vehicle on the road as long as possible, this is your best bet.
Some insurers, like Axa, require you to have a pre-existing policy with them for another vehicle you purchase.
This kind of insurance usually comes with all the standard options you would expect. You can choose from accidental damage to third party fire and theft, with extras such as key protection and breakdown assistance.
If you want to insure your classic car, get in touch with us and we can put you in touch with the right provider.
If you have an older or classic car, call us and we can help find the right insurance for you!
If you own or are buying an older or classic car, pick up the phone and talk to us and we can guide you through sourcing the right car insurance policy for you. Our car insurance experts know all the angles! We are available for phonecalls Mon-Fri between 8.30am and 5.30pm on 0818 224433 or 042 9359051.
If you require an instant car insurance quote, our quote engine compares the Irish market from 13 leading providers. Input your specific details, and we will search the market for you. It is worth bearing in mind that 45.4% of our customers who picked up the phone and talked us got a better insurance quote through dealing directly with our advisors!