Does Your Car’s Year Affect Your Insurance Rates?

Last Updated on December 12, 2025

Your car’s model year matters because it affects what your vehicle is worth—and how expensive it is to repair or replace. And that can affect your auto insurance price (especially if you carry full coverage car insurance).

All else equal, a newer vehicle is usually more expensive to insure than an older one because newer vehicles tend to have higher values and pricier parts. But “newer = higher premium” isn’t always true—safety tech, theft risk, and repair costs can flip the math for some models.

Here’s what insurers actually look at—and how your car’s year influences your rates.

Key Takeaways

• Your car’s model year affects insurance mostly by influencing vehicle value and repair/replacement costs.
• Year matters far more for collision and comprehensive than for liability-only coverage.
• Newer cars can sometimes be cheaper to insure if they have better safety tech, lower theft risk, or a better claim history.
• Make/model, mileage, driving record, and ZIP code often affect rates more than model year alone.

How Your Car’s Year Impacts Insurance Rates

The model year doesn’t usually change your premium by itself. Instead, the year affects other factors insurers price heavily, such as:

• Vehicle value: Newer cars are often worth more, so the insurer may pay more after a total loss or major claim.
• Repair costs: Newer vehicles can have expensive sensors, cameras, and advanced materials that increase repair bills—even for “minor” collisions.
• Safety tech and crash protection: Modern safety systems may reduce injury claims, which can help offset higher repair costs.
• Mileage and condition: Older cars often have more mileage and wear and tear, which lowers value and can lower certain coverages.

So yes—your car’s year can affect what you pay, but it’s mainly because of what the year implies about value, safety, and repair economics.

Sometimes Newer Cars Can Be Cheaper to Insure

It’s common for a newer vehicle to cost more to insure, but there are exceptions. A newer car could have lower premiums than an older car if it:

• Has more (or better) safety tech that reduces injury severity and claim costs
• Has lower theft risk because of immobilizers, tracking, or a less-stolen model
• Has a strong safety rating and lower loss history than the older vehicle
• Is driven fewer miles (and you accurately report your annual mileage)

In other words, don’t assume your premium will drop just because you bought something older—or rise just because you bought something new. The specific make/model and claim history matter a lot.

Car Year Matters More for Full Coverage Than for Liability-Only

Many drivers carry only liability insurance on older vehicles. Why? Because once a car’s value drops, paying for collision and comprehensive may no longer make financial sense.

How year affects the main parts of car insurance

Liability coverage: Liability (bodily injury and property damage) pays for injuries and damage you cause to others. Your car’s year usually has little impact here, because liability claims depend more on your driving behavior, location, and risk profile than your vehicle’s value.

Collision coverage: Collision pays to repair or replace your car after a crash. If you have a newer, more valuable vehicle, collision costs more because the insurer may have to pay more to fix or total the car.

Comprehensive coverage: Comprehensive pays for non-collision losses like theft, vandalism, fire, hail, and animal strikes. Newer vehicles (especially high-theft models) often cost more to insure with comprehensive because claim payouts can be larger.

If you carry “full coverage,” the model year will usually matter more. If you carry liability-only, the year often matters less.

Vehicle Factors Insurers Consider (Beyond Year)

Insurers price the whole risk: driver + vehicle + location. Beyond model year, vehicle-related factors include:

Make and model: Your vehicle’s make and model affects repair costs, theft risk, crash performance, and how often the vehicle is involved in claims. A luxury sports car is typically costlier to insure than a family sedan or minivan.

Safety features: Some vehicles qualify for a safety features discount depending on systems like airbags, stability control, automatic braking, and driver-assist tech. Your specific trim can matter.

Security and theft risk: Alarms, immobilizers, tracking, and anti-theft systems can help. But the model’s overall theft rate is still a major rating factor.

Mileage and usage: The more you drive, the more exposure you have to crashes. Some insurers price heavily around mileage, commuting, and garaging location.

Other Big Factors That Affect Car Insurance

Your vehicle’s year matters, but for most drivers, these factors can matter even more:

• State laws and required coverage limits (requirements vary by state)
• Your driving record (tickets, accidents, claims, and whether you have a clean driving record)
• Your ZIP code and local loss rates (why ZIP code matters)
• Personal factors like age, driving experience, and in many states credit score (where permitted)

FAQs on How Car Year Affects Insurance

Final Word on Car Year and Auto Insurance

In general, newer vehicles tend to cost more to insure because they’re worth more and can be more expensive to repair—especially with collision and comprehensive coverage. But the model year is only one factor, and safety features, theft risk, and the vehicle’s claim history can change the outcome.

If you want the best price for your specific model year, compare quotes and make sure your coverage matches your vehicle’s value and your budget.