Car Insurance in India has been compulsory since the Motor Vehicles Act was passed in 1988. Car insurance helps you protect your vehicle from any loss or damage that may happen due to an accident or natural calamities. Car Insurance is a form of property and casualty insurance that protects the insured from losses arising from automobile accidents, theft, fire, hail, vandalism, and other perils.
Most of the time people think of car insurance, they think of buying it for a new car. But what if you have an old car? There are some things that you need to know about old cars and their insurance in India.
The first thing to note is that there are different types of policies for old cars. Some cover only the cost of repairs while others cover the loss or damage to your vehicle as well. You will need this extra coverage if your car is worth more than Rs 5 lakhs.
The second thing to note is that most insurers do not insure cars older than 15 years. This means that if your car is older than 15 years, you will not be able to buy a policy from them or any other insurer in India.
What is Old Car Insurance?
Old Car Insurance is a type of car insurance that is specially designed for vehicles that are more than 10 years old. This type of insurance is available for all kinds of vehicles, but it may differ from one country to another. The age of the vehicle and the value of the car are two factors that determine the cost of this type of insurance. The older and more valuable your car, the higher your premium amount will be.
Car insurance is a type of insurance that covers the car and its owner against losses caused by accidents or natural disasters. When buying car insurance, drivers can choose the amount of coverage they want. The price of old cars is increasing day by day. The cost of insurance for old cars is also increasing day by day. So, it’s better to buy new cars than old cars.
Why Old Car Insurance is Important?
Insurance is important because it helps in protecting the car from any damages and also protects the person who owns the car. The old cars are usually not insured and hence they are prone to theft. This will help in reducing the risk of theft and also provide security to people who own old cars.
The cost of insurance is one of the most important factors to consider when buying a car. The older your car is, the higher the risk it will insure. This means that you need to pay more for insurance premiums. Therefore, you must buy an old car insurance policy to protect yourself against any unforeseen circumstances.
Whether it’s an old or a new car, insuring a vehicle is crucial in India. You cannot drive a vehicle on Indian roads without a valid insurance policy, and doing so will attract penalties. Now, when it comes to old cars, insurance becomes an even more critical factor. Below are the reasons for buying insurance for your old car:
- Third-Party Liability Coverage
- Personal Accident Coverage
- Protects Against Risks
- Mandatory for All Vehicles.
Things to Consider Before Purchasing Old Car Insurance:
The first thing you should do is to check the insurance company’s website for any special offers. The next thing you should do is to compare the cost of your old car with the cost of a new one. You should also compare the cost of your old car with the cost of a new one after deducting the value of its trade-in. The last thing you should do is to compare quotes from different insurance companies and choose the one that suits your needs best.
Compare Insurance Plans: Before buying second-hand car insurance, compare insurance plans offered by different insurers. Also, read the terms and conditions of the car insurance before making the purchase.
Claim Settlement Process: But you should know the car insurance claim process of a particular insurance company before buying an old car would be as easy as purchasing an insurance cover for it.
Add-on Cover: While buying a motor insurance policy for your old car, you can ask the insurer about the available add-ons. You can ask for some important add-ons such as the Engine Protect cover, Passenger cover and consumables cover. You will end up paying a slightly higher premium, but it will be beneficial in a long run.
Insured Declared Value IDV: Know the worth of your old car at the time of insurance. Value for a car decreases every year by some percentage.
No Claim Bonus (NCB): If you do not claim for small mishaps and accidents, then you get a bonus for each year. The rates are as under and you should be informed of it.
Existing Policy or Buy a New One: If you have bought a second-hand car, you can transfer the insurance policy to your name. By transferring the policy you can avail yourself benefits such as an NCB discount if the previous owner of the car has not made any claims. Or else you can buy a new insurance policy for your used car as per your requirement.
Depreciation: Every vehicle you own has a value that depreciates over the years. In case of any mishap, the reimbursement will be per the depreciation applicable for the replacement of the parts of the vehicle. As the age of the car increases the percentage of the depreciation increases. The idea is to know whether it will be helpful to buy insurance or not.
Advantages of Buying Old Car Insurance:
Below are the advantages of purchasing old car insurance for your used car:
Protection against Natural/Man-made Calamities: The Car Insurance Plan also covers damages to your vehicle caused due to natural or man-made disasters. For instance, if your old car is damaged due to flooding, the insurance policy will cover you from it.
Third-Party Liability Coverage: A Third-Party and Comprehensive Car Insurance Plan provide mandatory third-party liability coverage. It means the policy will cover damages to third-party property or life. If your old car ends up damaging third-party property or injures a third-party, then the insurer will cover such damages.
Accident Damage Cover: A Car Insurance Policy provides coverage against accidental damages. The chances of a component failure are high in an old car, which might lead to an accident. Damages caused due to an accident will be covered by the comprehensive car insurance policy.
Theft or Total Loss Coverage: Imagine if your old car is stolen or badly damaged in an accident. Without a car insurance policy, you will suffer a huge loss. But with a Comprehensive Car Insurance Policy, you are covered against total loss or theft of the insured vehicle. The insurer will pay the IDV of the vehicle if your old car is damaged beyond repair or stolen.
Insurance for 3 Year Old Car, 5 Year Old Car, and 10 Year Old Car in India:
|Old Car Insurance
||3 Year Old Car
||5 Year Old Car
||10 Year Old Car
|Third Party Liability
|Comprehensive Cover + Third Party liabilities
|Depreciation for IDV
||30% in some cases nil.
How to Buy/Renew Old Car Insurance Online?
Old Car insurance can be purchased online from the PolicyBachat portal in two easy steps. At PolicyBachat we cater unbiased comparison of quotes, 24*7 customer assistance team your motive is to give our customers the right quotes with compare car insurance rates online.
- Go to compare car insurance quotes online at PolicyBachat.com
- Fill in the required details select your Car Model & Variant, RTO Location, Registration date, and Email address.
- Click on the “START SAVING MONEY”.
- Choose between a Third-Party Liability Only and a Standard Package (Comprehensive Insurance).
- Premiums with different insurance companies are displayed with low premiums
- Select required Add-ons/Riders and discounts, or you can Edit Policy Details as per your requirement
- After that fill in the ‘vehicle owner details and personal details.
- Purchase best Car Insurance Policy using online payment.
- If any queries are raised call: 1800–123–4003.
Key Features of Old Car Insurance Online:
- 24*7 assistance, recent claim updates
- Avail up to 50% No claim bonus, transfer NCB to your new car
- Cashless claim over preferred garages
- Add-On Packages For Your Car Insurance Renewal
- Accident Cover: Compensation will be paid to permanently disabled or the death of occupants if the occupants are traveling in the insured car.
- Key replacement cover: In case, you lost your key or were locked, you will be assisted with a new key or replacement of your old ones.
- Personal luggage: The insurer will indemnify you for the loss of your baggage in the insured car, the add on covers will help you to claim for baggage loss.
- 24*7 support: A policyholder who needs assistance while on the road anywhere in India, support assistance will be at your place for providing emergency services.
Old Car Insurance Calculator Online:
Old car insurance prices depend on the following factors. There is no standard list of insurers who provide the lowest car insurance price in India for all types of cars.
- IDV of Car: Insured Declared Value of the car is its manufacturer’s showroom listed price minus the cost of depreciation. IDV also equals the maximum insured sum.
- Make and Model: Your car’s model and make also decide the premium price of the insurance policy.
- Age of Car: The more the age of the car, the more will be the car insurance premium price and vice versa.
- Add-Ons Purchased: The cost of availing of add-on covers adds to the car insurance premium cost. The more the add-ons purchased, the higher will be the car insurance policy’s premium price but the more will be the insurance coverage.
- Geographical Location: The car insurance premium is also affected by the location of the RTO at which the car is registered. Two car insurance policies for the same car and from the same insurer will be different for cars registered in different cities or in different areas of the same city.
FAQs of Old Car Insurance in India:
How Much Is Car Insurance For A 16 Year Old?
Car insurance rates vary from one company to another. The factors that contribute to the cost of car insurance are:
- Age of driver
- Occupation of driver
- The place where you live
- The type of car you drive
- Your driving record
- Type of coverage you want.
Can A 26 Year Old Be On Parents Car Insurance?
In India, a 26-year-old can be on their parent’s car insurance policy. The insurance company will charge a higher premium because the risk of the driver is higher. The driver is more likely to be in a car accident and more likely to have an accident for different reasons. This also applies to someone who is under the age of 18.
How Much Insurance For A 10 Year Old Car?
Car insurance is the financial protection against the risk of a car being damaged or stolen. The price of car insurance varies depending on the type of car and the country. India has a compulsory third-party liability insurance law that requires all drivers to have at least third-party coverage.
Do I Need Collision Insurance On An Old Car?
Collision insurance is an important part of car insurance. It is the perfect protection for people who own an old car that can't be repaired easily. Car collision insurance is a protection policy that covers the cost of repairs or replacement of your car in case it gets damaged due to an accident. If you are considering buying a new vehicle, then it is highly recommended that you get collision insurance on your old car as well. This will help protect the investment you have made in your old car and also save you from any financial liability in case of an accident.
Do I Need Comprehensive Insurance On An Old Car?
If you are looking for comprehensive insurance for your old car, then the answer is yes. Comprehensive insurance is an insurance policy that covers damages to your car caused by accidents or natural disasters.
While comprehensive insurance is not mandatory in India, it still provides great benefits to the owner of the car. The policy protects against all risks and pays for damages regardless of who was at fault.
Can I Buy New Insurance for 15 Year Old Car?
Buying a car is a big decision. And it's an even bigger decision if you're buying an old car. The reason for this is that you'll have to buy insurance as well, and the cost of insurance can be high for old cars. If you're considering buying a 15-year-old car, then here are some things to consider before making your purchase.
The first thing to think about is your budget and what type of coverage you want. You should also consider the cost of insuring the vehicle and how much that will affect your budget. You should always make sure that you have enough money set aside for all of these expenses before making any purchases.