Is it more expensive to insure a new or old car?

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asked Nov 13, 2023 in Insurance/Registration by Kaviattta (1,060 points)
Is it more expensive to insure a new or old car?

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answered Nov 13, 2023 by Egsbendict (20,790 points)
Insuring a new car is more expensive than insuring an old car because the new car requires full coverage insurance and because of the higher value of the new car to repair or replace.

Older cars that are owned outright only need liability auto insurance and not require full coverage so that makes it more cheaper and the fact that the older car is cheaper to replace.

Having a good credit based insurance score can help you pay a cheaper car insurance premium as well as having a cheaper car and good driving record.

Your credit based insurance score is the score that is used to determine how good of a risk you are to the insurance company.

Your credit based insurance score is a score that is determined from your actual credit score and when you have a low credit score your credit insurance score will lower and when you have a higher credit score your credit based insurance score will be higher which is a good thing.

The higher your credit based insurance score the lower your insurance rates will likely be and the lower your credit based insurance score the higher your insurance rates will usually be.

So when you're a good risk to the insurance company you'll usually pay less for your insurance than you would if your a poor risk to the insurance company.

An auto insurance score is based on the information from credit reports that insurers use to estimate how likely drivers are to file a claim.

An insurance score, also known as an insurance credit score, is a rating that is computed and used by insurance companies that represents the probability of an individual filing an insurance claim while under coverage.

The score is based on the individual's credit rating and will affect the premiums they pay for the coverage.

Paying car insurance monthly does not build credit.

You can pay your car insurance, monthly every few months or annually or whichever way you prefer or what ever way your insurance company allows you to pay.

Car insurance or auto insurance will not build your credit.

Although if you do default on your monthly car or auto insurance payments it may or may not lower your credit score.

Although defaulting on your car insurance or auto insurance payments can lead to a lower insurance score which can make you pay higher car or auto insurance premiums.

But paying monthly, yearly every few months etc has no effect on your credit score.

I prefer to pay my auto insurance or car insurance yearly though as I pay it once a year and don't have to worry about forgetting to pay the auto insurance.

I have done that before and only found out when I got pulled over and I thought I had current auto insurance but a few months went by and I was canceled.

So now I pay the auto insurance yearly so I ensure I have auto insurance.

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