It’s exciting to hunt for the right car. However, when it comes to shelling out high insurance premiums, your pockets might hurt. Many owners in Canada go for old or used cars. This is because the insurance premiums are lower for old vehicles. If you’ve planned to purchase an old car, it would be wise to get a model for which you would have to fork out a reasonably low insurance premium. Certain models are less susceptible to theft or damage. Purchasing these models from old car stores would, therefore, be a logical decision.
Most old car owners reach out to insurance specialists such as Surex for professional consultation regarding the right insurance coverage. The experts will help you choose the right car model for your needs.
List of Cheapest Old Cars To Insure
Approximate Annual Insurance Cost
|● 2016 Ford F-150 XLT Supercrew 4wd||● $2,045|
|● 2010 Dodge Grand Caravan SE||● $2,231|
|● 2006 Dodge Caravan||● $2,244|
|● 2005 Dodge Caravan||● $2,352|
|● 2007 Dodge Caliber Sxt 5dr||● $2,375|
|● 2005 Toyota Corolla CE 4dr||● $2,483|
|● 2014 Mazda3 GS Sky 4dr||● $2,565|
|● 2009 Nissan Altima 2.5 S 4dr||● $2,566|
|● 2012 Ford Focus||● $2,588|
|● 2007 Toyota Corolla CE 4dr||● $2,605|
What Makes Certain Cars Cheaper For Insurance?
The leading insurers in Canada have observed that certain car models are comparatively more affordable as far as insurance costs are concerned. These insurers scrutinize the costs involved in the claims. Accordingly, they link these costs to certain models that are cheaper than the rest. Some other factors like frequency of accidents, type of the vehicle, safety features, theft, and repairs required also affect the premiums.
Have a look at the key factors that influence the insurance premiums of old cars.
1. Nature of the car
The nature of the car you drive broadly shows your lifestyle. For instance, married people with children often purchase old crossovers and minivans. Insurance companies predict that people driving a particular type of vehicle value caution and safety based on statistical information. This type of behavior from the driver mitigates the risks of accidents thereby lowering the claims they file.
2. Safety ratings
The insurance premiums largely depend on the safety ratings of cars. Higher safety ratings would have you shelling out lower fees. Although you would be purchasing an old car, new features and technologies are continuously making their way into these vehicles. These safety ratings are based on crash avoidance and protection. It determines the extent to which the car can secure its occupants during a crash.
With fresh technologies, the crash severity is substantially pulled back. For instance, some of the older models also come with automatic emergency braking and collision warning. Old car models such as Ford F-150 Supercrew are equipped with some of these features. Naturally, these vehicles attract low insurance premiums.
3. Replacement or repair expenses
If you decide to purchase an old car that would require heavy repairs, the insurance premiums would be higher. Besides, the insurers would check the costs needed to replace parts if they are damaged beyond recovery. At times, the cost of parts can exceed the value of the vehicle itself. In such scenarios, you need to shell out a higher premium for old cars.
4. Likelihood of theft
IBC reports that a car theft takes place every seven minutes in Canada. This is a serious concern for insurers as well. Therefore, the customer needs to bear a part of this concern in the form of higher premiums.
You will save money if you purchase an old car in Canada that has low theft instances. Besides, incorporating an anti-theft alarm will also serve the same purpose.
5. Age of the vehicle
In the list we provided earlier, most vehicles are only a few years old. However, they are old enough to attract low premiums when you get them insured. Older vehicles are less valuable than new cars. This indicates that they are less expensive to replace or fix. As a result, it is cheaper to get them insured.
However, older cars tend to break down more frequently. Therefore, you need to find the ones that strike the perfect balance between the decrepit old models and the expensive ones. As a thumb rule, old car owners should look for vehicles manufactured between 2005 and 2012.
6. Reputation of the car brand
Of course, the brand of the car and its corresponding reputation would influence the premiums you need to shell out. Some of the top brands include Nissan, Dodge, Ford, Toyota, and Mazda. The list presented above includes models from all these brands. Insurance companies are confident about the quality and durability of these vehicles. They readily roll out policies for old cars when you purchase them from these reputed brands.
However, this advantage is nowhere to be seen with popular cars. As long as the reputation looks good, insurance companies consider the vehicles reliable and hence ask for lower premiums.
7. Driver’s record
Certain factors not related to the make or model of the car also affect insurance premiums, even if you invest in an old vehicle in Canada. For instance, the driver’s record and driving habits would obviously have an impact on the premiums.
While younger drivers are more likely to be part of accidents, older drivers cultivate restraint. The older you are, the cheaper the premiums. Besides, drivers with a clean record also enjoy comparatively lower premiums. Therefore, your driving history, daily commute, postal code, and age affect the premiums.
Insuring an old car is a tactical move. Rather than focusing on the age of the car, you need to customize it as per its functionality and operational efficiency. Even if the car is old, it will serve you well if it does not break down frequently or require too many repairs.
Before you purchase auto insurance, it would be wise to reach out to the insurance specialists for a professional consultation. An informed decision on your end would always save you money and unnecessary hassle in the long run.