Car insurance can be confusing. Since it is mandatory in most states, all car owners need to consider what car insurance to get. For some, the bare minimum will do, and they will get third party cover. That means that if they hit someone else or cause an accident, the person's damages and medical bills will be paid. But most drivers want to know that their costs will be covered if their own cars are stolen or damaged.

There is an idea that cheaper cars are easier to insure. They are certainly cheaper to insure, as you will pay less to repair or replace them. However, whether they are easier to insure is up for debate.

You can get knowledgeable from this source about how car insurance works. It will help in understanding why cheap cars might really be easier to insure.


When you insure a car, you are paying a premium based on how much the insurer will have to pay if you get into an accident. If you are driving a car that is depreciating fast, this may mean your insurance is slightly more complicated. Expensive new cars depreciate most quickly, losing a significant amount of value when you drive off the lot.

Over the first year, your car can lose up to 40% of its value. What happens, then, if your car is stolen or written off after a year or two? Should the insurance pay for a new car or a car of the same age? Since you're paying for full coverage, in theory this should be the case. Alternatively, your premium should decrease proportionally.

However, this is not the case unfortunately. Because the cost of things like repairs does not change, your premium is unlikely to change either. Actually having to replace the car itself is the least likely eventuality your car insurance takes into account.

When you insure a cheaper car, especially if it is an older used car, your insurance will pay a value very close to the value at which you bought it, even if it is stolen a few years later. This doesn't quite make it easier to insure, but it is easier as a premium holder to swallow.

Electric Consoles

Another reason cheaper cars may be easier to insure is that repair costs can be calculated in the traditional way. Mechanics have been fixing mechanical cars for generations, and certain repairs are standard. In expensive new cars, however, electric parts are making these calculations a lot more complex.

This is not limited to electric or hybrid cars. Rather, even traditional fuel-powered cars tend to have electric consoles today that are expensive to replace. They cannot be replaced by most mechanics, either, which makes the calculations even more difficult to wrap your head around. Your insurance is basically covering both traditional mechanics and modern digital systems.

With older vehicles, even getting a digital sound system installed will not make your insurance much more complicated. It is easy to calculate your new system as an added extra, which can be covered according to different conditions.

Is it easier to insure a cheaper car?

Ultimately, the process of insuring your car is going to look very similar no matter how expensive your car is. The insurance companies you approach for quotes will calculate a premium for you, leaving you to compare and contrast. However, if you want to check their calculations, you're going to have to do a bit of research and some more intricate mathematics.

In reality, it is older cars rather than cheaper cars that are easier to work out insurance for. After all, even cheaper cars today have accessories or parts that are more difficult to insure according to traditional standards.

The difficulty you face when finding the right insurance for your car should not be too big a factor in your decision of which car to buy. Price will always be relevant, as you are paying premiums as long as you own the car, but actually organizing your car insurance is something you will do once (and can change in future according to your own wishes).

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