Images by Getty Images; Illustrations by Bankrate
According to the Transportation Bureau, passenger cars on roads in the US are older than ever, with an average age of 12.6 years old. Ten years ago, the average age of a US passenger car was only 11.4 years old.
The average vehicle age first reached 12 years in 2021 and has been steadily increasing since then, with Hedges & Company experts projecting an average age of 14.5 years by 2029. Advances in vehicle technology can extend the functional life of an average vehicle.
Why Americans Keep Cars Longer Than Previously
To understand why American cars are aging, we recently spoke with a Bankrate staff member who decided to maintain the old one rather than buying a new one. The cars owned by these staff range from 7 to 24 years old, with an average age of 15.7 years old.
Staff includes elements of the decision to maintain an old car.
- Avoid car payments: Several staff cited the fact that they didn’t want to pay for the car as the main reason they stuck with older cars. The average monthly car payment is $742 for new cars and $525 for used cars, and many 2025 budgets are sought.
- Remote Work: Two staff members said they and their partners had worked remotely, which reduced transportation needs. For car owners who work from home, a reliable car might not be a priority otherwise.
- Future plans: Several staff members have decided not to buy new ones for their living environment, including completing graduate degrees and planning family plans.
- There is no itch to buy: Older vehicles come with additional maintenance (and sometimes stress), but staff are generally happy with the current vehicle.
Bankrate Staff Story
Aging vehicles can pose challenges to insurance
Saving money seems to be the main reason why many US drivers keep their cars longer than ever before. However, while maintaining an old car may help you avoid paying for a new car, it is important to remember the hidden costs of car ownership, such as insurance, that will not end when your car loan is made.
Insurance may have certain benefits to maintaining an older car, but it can also increase the risk of major financial losses.
It is usually costly to get insurance on older vehicles
Good news: Maintaining an old car usually reduces monthly car insurance costs.
On average, the full coverage of a 10-year-old vehicle is nearly 30% less than the same coverage of a new vehicle. Bankrate analyzed average premiums from quadrant information services for five popular models: Ford F-150, Honda Civic, Subaru Outback, Tesla Model S and Toyota Camry, comparing the rates of the 2023 model with the 2013 model.
| 2023 model | 2013 model | |
| Ford F-150 | $2,611 | $1,720 |
| Honda Civic | $2,654 | $2,000 |
| Subaru Outback | $2,227 | $1,701 |
| Tesla Models | $5,484 | $3,208 |
| Toyota Camry | $2,692 | $2,026 |
The analysis shows that older vehicle owners saved an average of $1,000 a year compared to those who own 2023 models.
Older vehicles are more likely to be declared complete loss in the event of an accident
Usually, you pay less to guarantee your older vehicle, but there are downsides. If it’s crashing, the older vehicle may be more likely to declare complete loss.
The average age of the vehicle in 2024 declared its total loss of 10.6 years compared to just 6.8 years of repairable vehicles, according to CCC Intelligent Solutions. If the cost of repairing a vehicle exceeds a certain percentage of the vehicle’s value, typically between 60 and 100%, a total loss is declared. The lower values of older vehicles, so it is usually more likely that repair costs will pass a threshold for total losses for these vehicles.
If an insurance company declares total losses for an older vehicle, you could face the challenge of replacing it with a new vehicle despite receiving relatively small insurance payments from the total vehicle. Depending on the terms of your policy, you may have the option to negotiate with an insurance adjuster, but it may still not be sufficient to support you in purchasing a new vehicle.
Older vehicles can pose greater safety risks
Not only is it likely that the older vehicles will be added up after a collision, but you could also end up in a collision in the first place.
New vehicles will be subject to increasingly strict safety standards set by the National Highway Traffic Safety Administration. For example, all vehicles manufactured after 2011 require electronic stability control technology. For cars manufactured after 2018, a rear backup camera is a must. Other advanced driver assistance systems (ADAs), such as forward collision mitigation and blind spot monitoring, are not yet mandatory by law, but are standard in most vehicles manufactured in recent years.
Driving older cars, especially 10 models of cars from over 10 years old, means driving without the benefits of these technologies. Many ADAS systems can also reduce the severity of a crash, which means older car owners can be at a much higher risk of crashes, let alone high billing costs in case of a crash.
That cost can last you well beyond the initial repair costs. According to an analysis of average estimate premiums from Bankrate Quadrant Information Services, drivers with one record-breaking failure are about 44% more drivers than drivers with clean records than with car insurance.
How to reduce your insurance risk when maintaining an older car
Despite the safety and insurance risks posed by maintaining an older vehicle, it still makes economic sense for many drivers. However, as your vehicle ages, it is important to take a proactive approach to car ownership. Consider the following strategies:
- Following maintenance: Old, well-maintained vehicles often last for years. Keeping your vehicle in a safe operating state reduces the chances of an accident and increases the life of your vehicle.
- Don’t quickly lose coverage: Once your car loan is repaid, full coverage insurance is no longer a requirement. Still, most senior owners can still benefit from it unless they are comfortable replacing their car without help from insurance payments.
- Read the language of the Total Loss Policy: Don’t wait until you crash to understand what your insurance policy doesn’t cover or what your rights are if a complete loss occurs. Take your time to read your insurance policy and ask your insurance agent about coverage.
- Invest in safe driving: Adas Tech, which may be missing old cars, does not create a safe driver. It simply extends and supports what a secure driver is already doing. Even if your car doesn’t have backup cameras, electronic stability controls, or collision mitigation technology, learning safe driving techniques can help reduce the risk of a crash.
- Reduce driving if possible: Ownership of an older car works best when you don’t rely entirely on the vehicle for daily driving. Working remotely and using public transport to skip long road trips can reduce vehicle wear, reduce insurance costs, and extend lifespan while reducing the risk of costly accidents.
- Create a backup transportation plan. One of the biggest risks to maintaining an older car is that you may suddenly stop working. Make sure you’re ready to address that possibility by saving your down payment on your new vehicle or scoping an alternative mode of transport.
