Because insurance companies (or any profit making company for that matter) do not like to decrease premiums in some kind of automated fashion. They want you to

Because insurance companies (or any profit making company for that matter) do not like to decrease premiums in some kind of automated fashion. They want you to work hard to get that reduction even if there is one possible. Now, about your car being new vs old, that part is usually covered by "Comprehensive" insurance. It applies only to your car. If you think your car is too old and of not much value, don't buy comprehensive. It is optional unless you have leased/financed the car. If you own the car outright, then you can get rid of comprehensive if you still have it on your policy. Note: I don't know if all states have same laws but generally, this is the case. The part of insurance where you usually don't want to cut corners is the liability insurance. That is, what happens if someone else's car or life/health is damaged by you.