Do you want to ask your questions about why old car insurance is more expensive? So you are in the right place. In today’s article, I will explain why these cars have a higher insurance cost.
When taking out auto insurance, many doubts arise for future policyholders, after all, it is a complex product. Among the most recurring questions from people who are looking for protection for their vehicle is to understand why insurance for old cars is more expensive.
Now, among the insurance myths, we can cite the counterpoint of old cars, where there are rumors that new cars are more targeted for theft and, therefore, need car insurance even more. In reality, there is no direct relationship between the vehicle theft rate and the date of manufacture of the cars.
What, in general, attracts thieves is the fact that the car is easy to pass on parts, that is, the interest in the dismantling of the parts. In this case, more popular cars tend to be more targeted than very expensive and imported cars, for example.
Still without insurance for your car?
Understanding the subject is very important to clarify some situations. To help, we will talk in this article about how it works, what impacts the price, the advantages, and if all old cars can be insured. Check out the next topics!
How does old car insurance work?
Antique car insurance is a type of protection available for vehicles with ten or more years of manufacture. Overall, the coverage offered includes 24-hour assistance, theft, theft, and collision.
Depending on the insurer, the policy includes some extra and specific protections, such as locksmith and tire change services. One of the differentiating aspects of vintage car insurance is the coverage for total loss.
In new cars, coverage is usually 100% of the value of the table ( FIPE ). In the old ones, the average is around 75%. Another common difference is the amount paid in the deductible in case of partial losses – new cars are usually cheaper.
Before taking out insurance for old cars, it is important to know the main characteristics and differences between them, used and seminovos. In this way, it is possible to understand the policy and talk to the broker about rules and prices. We’ll talk about these differences later.
What are a vintage car, used car, and used car?
Before understanding the reasons, knowing how to differentiate old cars from new and used cars is important. Used cars, for example, are those that have been manufactured for less than three years and have traveled up to 20,000 kilometers. This is a case of a new vehicle.
Used cars influence, in some factors, such as being more than three years old and 20,000 run, in addition to the condition of the bodywork, engine, clutch, exchange, etc. The crash history is also important to be analyzed, as well as the presence of non-original accessories.
Old cars, on the other hand, are those that have been discontinued and are no longer manufactured, as was the case with famous models in 2016 and 2017.
Understand why old cars have more expensive insurance
This issue is simple to explain for the following reason: old cars, at the time of a partial loss claim, have repair parts that are more difficult to find. If the car has already been discontinued, the difficulty increases, directly impacting the price. This topic was even addressed in the myths and truths about car insurance.
This price increase in auto insurance tends to be higher for cars with more than 10 years of use and the reason, basically, is the difficulty in finding replacement parts. Total loss, for example, is not “as” a serious case for insurers as partial losses from old cars that need replacement.
Flex modality: an alternative to save on old car insurance
To reduce the cost of old car insurance, many insurers offer the flex modality. One type of insurance provides flexible, segmented, and simplified coverage. In practice, flex protection is 30 to 60% cheaper than comprehensive (traditional insurance).
To generate these savings, insurers do not charge the deductible and do not cover the partial loss (in cases of collision). On the other hand, they offer the following protections: theft, theft, damage to third parties, 24-hour assistance, and total loss. The final price of the policy varies according to the protections contracted by the insured.
However, there are flex insurances that also include coverage for fire, optional civil liability, moral damages, extra car, and extras for mirrors, flashlights, and headlights.
There is also an interesting alternative to the flex modality: the insured hires a basic package and earns additional fees. For example, you purchase only theft and robbery protection, but with the addition of fire coverage.
All these possibilities are offered by insurers to make it easier for owners of old cars to take out insurance. However, the objective is also to take advantage of an unexplored market that can generate good profits.
What is taken into account in the price of vintage car insurance?
Among the most relevant factors that make the price of old car insurance more expensive, there are two main factors. One of them we have already commented on before, but we will go into detail, which is the spare parts.
One of the most important factors that impact the price of insurance for old cars is due to the value of replacement parts. They are much harder to find, so they are more expensive. The impact on the price of insurance ends up becoming visible in some cases.
However, there are some alternatives to make old car insurance cheaper. An example of this is the installation of trackers, blockers, or locators. Insurance with a tracker is a way to customize the plan and, consequently, reduce costs. They make it difficult for bandits to act, whether in robberies or thefts.
And even if it does, these items can help police locate the car. Any of these products can reduce the price of insurance by up to 20%. It is worth getting an auto insurance quote for old cars and knowing the prices.
In addition to the main fact of the most expensive replacement parts, it is also necessary to point out the statistics of theft, robbery, and collision of old cars. Some studies point out that old car because they have fewer safety conditions, such as ABS brakes, offer more risks to drivers and passengers.
Why buy old car insurance?
According to an article by the news portal UOL, 80% (something around 17 million) of insured vehicles in Brazil have been manufactured and used for up to 5 years. On the other hand, 70% (approximately 35 million) of the national fleet does not have any type of coverage. A good part of this percentage is for vehicles over 10 years old.
Old cars, like any other vehicle, need to be protected with auto insurance. As old as it is, it is a heritage and needs protection. There are several options that can help with hirings, such as insurance only against theft and theft. But making sure the vehicle is protected is critical.
Unforeseen events happen to all types of cars, whether they are new, pre-owned, or used. Insurers have numerous products that are sure to suit your car and its age. As stated in the previous topic, many insurers have already created exclusive packages for old cars.
In this way, insurance is cheaper than traditional ones, in addition to offering personalized protections. Minuto Seguros is a brokerage company that works with more than 10 highly qualified insurance companies ready to assemble a plan according to your needs.
Can all old cars be insured?
Some insurers, because of the age of the car, do not insure vehicles over 20 years old. In these cases, it is best to have at least third-party insurance, in order to guarantee protection in case you crash into other cars.
In addition to taking out insurance for third parties, there is the possibility of taking out insurance with a tracker, which is a more viable option for old cars. Insurance with a tracker is also a way to reduce the price.
Undoubtedly, old cars are still important goods. And some vehicles have incalculable emotional value to their owners. Therefore, they need to be safe and protected against any eventuality. And Geico auto insurance is the best protection.
What did you think of our article? Do you understand how old car insurance works? What do you think about making an online quote without commitment.
Avoid unforeseen events: quote your insurance
Have you ever thought if a problem occurs in your car and you don’t have insurance with 24-hour assistance? What if you have your car stolen, stolen, or had an accident that results in a total loss? All of these are events that may be covered by insurance.