Is It Cheaper to Insure a New Car or a Used Car? Unveiling the Cost of Car Insurance
The thrill of acquiring a new car can often overshadow the continuous financial consideration that’s behind the veil, especially when it comes to auto insurance. Understanding whether it’s cheaper to insure a new car or a used car will empower you to make a smarter decision. Crossroads Automotive Group is your one-stop dealership group that’ll provide you with the information you need to find the best insurance from one of our Ford, Nissan, CDJR, or INFINITI dealerships.
Is It Cheaper To Insure A New Car Or A Used Car?
Choosing the right car involves more than just the initial purchase price. Understanding how car insurance companies assess cost differences between new and used Ford, Nissan, CDJR, or INFINITI vehicles enables you to make a decision that works for your wallet. Here’s a breakdown of the key factors influencing your car insurance premiums.
Value of the Vehicle: New cars are typically priced higher than used ones. When it comes to the replacement value of your ride, you’ll see that these will often incur higher premiums.
Your Driving Record: Your history plays a big role in deciding whether it’s cheaper to insure a new car or a used car. Good drivers with clean driving histories are rewarded with lower insurance rates than someone who’s had an accident, regardless of the vehicle’s age.
Your Coverage Selection: Naturally, whichever insurance you decide to go with to cover your ride is the determining factor on whether it’s cheaper to insure a new car or a used car. If you decide to add additional coverages and warranties, you’re going to end up paying more.
Your Location: Where you live also has a significant impact on your car insurance costs. This is due to the area’s susceptibility to accidents or thefts. It makes you wonder, “Is it cheaper to insure a new car or a used car in North Carolina?” We’ll be informing you of this information in the following section.
Is Insurance Cheaper For New Cars?
In the states of North Carolina and Virginia, there are three important values about the average driver: good driver, recent accident, and those with low credit. Age is also a defining factor. For example, a driver who’s 17 years old will have significantly higher insurance costs than an older age group. Additionally, GAP insurance is essential for those financing or leasing new vehicles, as it covers the difference between the amount owed on the loan and the vehicle’s depreciated value in the event of a total loss. The cheaper insurance for new cars or used cars, on average, can be lower as you age. These statistics are subject to change at any time, but they serve as a good indicator for your reference.
The Insurance Trade-Off Between New vs. Used
New cars generally require higher insurance premiums due to their higher replacement value and the need for comprehensive and collision coverage. However, they often come equipped with advanced safety features like Automatic Emergency Braking, Lane Departure Warning, and a Lane-Keeping System, which can potentially lower your insurance premium by demonstrating a lower risk of accidents. Some insurance companies may even offer new car discounts for the first few years of ownership. This is good to know for those considering new cars for cheaper insurance instead of used cars. On the flip side, used cars often cost less to insure since they have lower replacement value and typically lower repair costs due to simpler technology and more readily available parts. However, they may lack the advanced safety features that could qualify you for premium discounts. And so the question remains, “Is insurance cheaper for new cars?” There’s no simple answer, as the best approach you can take is to compare quotes from multiple insurance companies for both new and used car options. Whichever insurance you decide to go for, this will give you insight into whether it’s cheaper to insure new cars or used cars. You’ll want them to align with your needs and budget, allowing you to consider all factors by the time of purchase.
Car Insurance Between the Brands
Let’s take a look at some of the insurance benefits offered by Ford, Nissan, and INFINITI. Understanding them will give you better insight into what insurance you can expect if you decide on a vehicle from them.
Ford: Ford Insure, Underwritten by Nationwide: If you’re looking for insurance approved by the Ford brand, Ford Insure is partnered with Nationwide Mutual Insurance Company.1 It offers car insurance to owners of most Ford vehicles produced from 2020 onward. This usage-based insurance program utilizes telematics data to assess driving habits and potentially provide premium discounts to safe drivers. By enrolling and maintaining good driving behavior, you can receive a 10% initial discount. Further reductions are based on a safer driving record, which can allow you to receive a premium discount of up to 40% off. With a tailored and affordable approach to insuring your new or used vehicle, you can rest assured that your Ford vehicle will be covered if it meets the requirements. Contact us for more information.
Nissan & INFINITI: Insurance Powered by Liberty Mutual®: Want to stick to what you know? Liberty Mutual provides insurance for Nissan and INFINITI owners This program caters specifically to Nissan and INFINITI vehicles and offers various coverages, potentially saving you up to $700.2 Like any insurance, there are still factors to consider when you want to find out if it’s cheaper to insure new cars or used cars. Nissan and INFINITI Insurance powered by Liberty Mutual has custom options you can choose from to pay for what you need. Further information on this can be found by filling out the online form or contacting a Nissan representative at 855-300-2221 or an INFINITI representative at 855-300-2221. Otherwise, coverage is as follows:
- New Car Replacement™3
- Accident Forgiveness4
- Genuine Nissan/INFINITI Replacement Parts5
- 24-Hour Roadside Assistance6
- Multi-Car Discount7
With a specialized program like this, insuring a new or used Nissan or INFINITI can be affordable regardless of the car’s age. The insurance coverage options provided ensure that you have the necessary protection tailored to your vehicle’s specific needs.
The Choice is Yours
By understanding the factors affecting car insurance rates for new and used vehicles, you can make an informed decision for your next ride. Find out for yourself if it’s cheaper to insure a new or used car by doing your research and contacting Crossroads Automotive Group to find the dealership for you.
1. Ford Insure is a product presented by Ford Motor Insurance Agency (FMIA NPN 95889, CA license #0C02678), a Ford affiliate and licensed insurance agency. Ford Motor Insurance Agency’s principal place of business is in Dearborn, Michigan, with its domicile in Delaware. Ford Insure is underwritten by Nationwide Mutual Insurance Company and affiliates. Home Office: Columbus, OH. See FordInsure.com for a full list of affiliates. Ford Motor Company and Ford Credit are not insurance companies or agents. Ford Insure is underwritten by Nationwide Insurance Company Of America (NICOA) in California, Nationwide General Company in New York, and in all other states Nationwide Mutual Insurance Company and affiliates. Home Office: Columbus, OH. See FordInsure.com for a full list of affiliates. Ford Motor Company and Ford Credit are not insurance companies or agents. Subject to underwriting guidelines, review, and approval. Insurance terms, definitions and explanations are intended for informational purposes only and do not replace or modify the individual insurance contracts, policies or declaration pages, which are controlling. Subject to underwriting guidelines, review, and approval. Product and discount details and availability vary. Ford Insure is not available in AK, HI, LA, MA, or OK. NY and FL residents please call 1-833-FORD-183 to speak to an agent about available products.
2. Average savings based on a countrywide survey of new customers who reported savings when they switched to Liberty Mutual between 10/2021 and 09/2022. Savings may vary. Comparison does not apply in MA.
3. Optional coverage in some states; availability varies by state. Eligibility rules apply.
4. ACCIDENT FORGIVENESS NOT AVAILABLE IN CA. Terms and conditions apply.
5. Genuine Nissan Replacement Parts available except where prohibited by state law.
6. Coverage is provided on the optional Towing & Labor Coverage endorsement. May vary by state. Applies to mechanical breakdowns and disablements only and may be subject to limits.
7. Discounts and savings are available where state laws and regulations allow and may vary by state. Certain discounts apply to specific coverages only. To the extent permitted by law, applicants are individually underwritten; not all applicants may qualify.
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