Is It Cheaper To Insure a New Car Or a Used Car?

New vs. Used: The Cost Of Car Insurance

The excitement of buying a new car can sometimes overshadow the ongoing financial considerations. Understanding the difference in insurance costs between new and used cars can help you make a smarter decision. Preston Nissan is here to provide the information you need to answer whether or not it’s cheaper to insure a new car or a used car. Get started by browsing our selection of models today.

Exploring Factors That Influence Car Insurance

Choosing the ride for you is more than just its purchase price — insurance can tack on a significant monthly expense. There are varying elements that affect insurance cost, so determining if it’s cheaper to insure a new car vs. a used car is not a yes-or-no situation. Here’s a list of things you’ll want to keep in mind when you’re thinking about insuring your next ride:

Vehicle Value: Newer cars typically cost more to replace, leading to higher insurance premiums. However, newer vehicles with advanced safety features can actually lower your insurance.

Driving Record: Your driving history is a significant factor in determining your insurance rates, regardless of the car’s age. Good drivers will naturally pay less than irresponsible ones.

Coverage Selection: Whether you have a new or used car, the type and amount of coverage you choose will impact your insurance cost. It’s important to do your research and compare prices with other lenders to ensure you’re getting the best rate with the best coverage.

Location: Where you live also affects insurance rates due to factors like accident rates and theft. Before you purchase your next ride, consider if it’s cheaper to insure a new car or a used car in Maryland. We’ll be informing you more about this in the next section to broaden your understanding.

Car Insurance Costs in the Old Line State

The state of Maryland features several factors that influence car insurance rates. If you’re wondering if insurance is cheaper for new cars, you’ll notice that having poor credit increases your cost, along with any recent accidents. In addition, drivers who are just starting out on the road at 17 years old will pay significantly more than older drivers. While these factors influence whether it’s cheaper to insure a new car or a used car, you won’t know the actual insurance rate until you select the model you’re prepared to drive and the lender you choose to work with. 

Weighing Your New or Used Car Insurance Options

In the hunt for your next ride, you’ll notice that new cars often have higher insurance premiums due to their higher value. However, you’ll also discover that because they often come with advanced safety features like automatic emergency braking, advanced driver assistance systems, and more, the decreased risk of accidents can lead to potential discounts. It’s important to do your own research because some insurance companies offer new car discounts as well. When it comes to finding out if it’s cheaper to insure a new car or a used car, the latter will typically have lower insurance costs due to their lower value. As a tradeoff, however, used vehicles may lack advanced safety and technology features that could qualify you for discounts. Ultimately, the best way to determine whether a new car or used car insurance is cheaper for you is to compare quotes from multiple insurance companies. Putting in the time to do this yourself will be worth it rather than simply taking it at face value. A good way to start your research is to first consider your budget, what you intend to use your car for, and if there are any specific features you’re interested in to optimize travel.

Nissan Insurance Powered by Liberty Mutual®

Nissan owners have the opportunity to take advantage of some insurance that’s more familiar to them, as it’s offered by the OEM itself. Liberty Mutual offers a specialized insurance program if you decide to drive a Nissan, providing you with potential savings of up to $700.¹ This program provides various coverage options to fit your needs, including:

• New Car Replacement™²
• Accident Forgiveness³
• Genuine Nissan Replacement Parts⁴
• 24-Hour Roadside Assistance⁵
• Multi-Car Discount⁶

This program can help you decide whether it’s cheaper to insure a new car or a used car. If you have questions about Nissan Insurance Powered by Liberty Mutual®, you can fill out the online form or contact a representative at 855-300-2221 to give you the information you need.

The Final Decision Is Yours

Now that you have a better grasp on how insuring a car works, you can confidently discover if it’s cheaper to insure a new car or a used car. From performing your own research, including comparative pricing, to understanding how crucial factors affect your insurance premium, you can choose the best option for your next ride. Visit Preston Nissan to explore your options and take a test drive today.

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1 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.

2 Optional coverage in some states; availability varies by state. Eligibility rules apply.

3 ACCIDENT FORGIVENESS NOT AVAILABLE IN CA. Terms and conditions apply.

4 Genuine Nissan Replacement Parts available except where prohibited by state law.

5 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.

6 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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