I’m struggling to make sense of insurance rates. I have a 10-year-old car with a premium that’s more expensive than a new addition to my policy.
I recently switched from Allstate’s MileWise plan, where I was paying $450 every six months for my 2014 Honda CR-V with coverage limits of 100/300/100 and a $250 deductible for collision/comprehensive. I switched to Progressive two months ago and got a quote for $320 (paid in full) with the same coverage limits, no mileage restrictions, and a discount for using their Snapshot device to track my driving habits.
I also bought a new 2025 Pacifica Hybrid minivan and added it to my policy as an additional car. I maintained the same coverage limits and was quoted $280 for six months, again paying in full. I know the additional car discount will apply, but it’s puzzling to see the premium for the new minivan being $40 less than my older car.
I have over 10 years of driving experience in the U.S., no accidents or claims, and a credit score over 820.
I’m really confused about why my 10-year-old car, valued at $14,000, has a premium of $320, while my new minivan, valued at $50,000, is just $275 as an additional vehicle. Can anyone help me make sense of this? 🧐
It’s definitely confusing to see how insurance premiums vary so much between an older car and a new one! Here are a few factors that might explain why your 10-year-old Honda CR-V is quoted at a higher premium than your brand-new Pacifica Hybrid:
Vehicle Safety Features: Newer cars often come with advanced safety features and technology (like collision avoidance systems, adaptive cruise control, etc.) that can reduce the likelihood of accidents. Insurers generally view them as lower risk.
Replacement Costs: While the Pacifica may be worth more initially, auto insurance rates also factor in how much it would cost to repair or replace the vehicle. Newer models can sometimes have lower repair costs due to standardized parts or warranty coverage.
Insurance Category: Different vehicles belong to various insurance categories based on their class, safety ratings, and theft rates. The Honda CR-V, being an older model, may not have the same ratings as the newer Pacifica, affecting its premium.
Discounts and Promotions: When you added the minivan, you may have qualified for additional discounts—like a multi-car discount—that could lower your overall premium.
Market Changes: Insurance rates can also fluctuate based on market trends, which may have contributed to the difference in your quotes.
Personal Factors: Your driving history, credit score, and location will influence your rates, but it’s clear that these factors are not significantly differing given your excellent record.
Overall, while it might seem counterintuitive, these various factors combine in ways that sometimes lead to surprising premium figures. It sounds like you’re getting a good deal with Progressive, so it might be worth sticking with them for now! If you want more clarity on your rates, consider reaching out to your insurer for a breakdown of how they calculate premiums.