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Does An Old Car Need Comprehensive Car Insurance?

Published On Dec 30, 2020 6:00 PM By InsuranceDekho

The value of older cars typically depreciates over time. You can drop comprehensive coverage from your plan if your car is paid off. If you get rid of coverage and your older vehicle is damaged in a mishap, your policy would not pay for the harm.

Do you own a vehicle that was manufactured in 2009 or before this year? Your vehicle is considered older and may involve a lot of risk factors. The technology and components used may be obsolete, resulting in a higher risk of low performance and the need for regular tune-up sessions. As a result, the maintenance and repair costs of old cars may become a financial burden for you. Read on to find a quick guide to a comprehensive policy for old cars in India.

Does An Old Car Need Comprehensive Car Insurance?

Why Is It Necessary To Insure Old Cars? 

In India, it is mandatory to protect your vehicle, despite it being old or new. Listed below are some of the reasons for purchasing an insurance plan for your old car. 

  • Provides Risk Protection: 

A comprehensive car insurance plan will cover you financially in case of any mishap, including accidents, disasters, fire damage, and much more. 

  • Cover Third-party Liabilities: 

The old car Insurance Plan covers losses to the property or lives of third parties. The insurance policy will pay if your old vehicle causes third-party property damage or third-party damage, death or disability due to an accident.

  • Personal Accident Coverage: 

In addition to protecting your vehicle, an old car insurance plan offers protection against the owner's or driver's accidental injury or death. For example, if you are hurt in a car accident, your insurance company will compensate you for the expenses incurred during treatment. 

  • Natural And Man-made Damages: 

The insurance company  will provide cover for damages caused to your vehicle due to any natural calamity or human activity such as fire, cyclone, etc.

Factors That Affect The Premium Of Old Car Insurance Policies

At the time of calculating the premium, the insurance companies consider a variety of factors. Some of them are listed below. 

  • Age Of The Car:

Your car's age is the most important factor that determines the premium of your car insurance policy. As a result, an insurance company may ask you to submit the age proof of your old car along with the verification certificate issued by the Vintage and Classic Car Club of India (VCCCI). 

  • Present Market Value of The Car: 

Classic automobiles don't have a set market value, so the insurance company and the owner mutually agree on the value of the vehicle depending on its condition. 

  • Estimated Repair Costs:

As such vehicles frequently need maintenance and repairs to be in top shape, the insurer will concentrate on the potential cost of repairs when determining the premium.

  • Estimated Costs of Spare Parts:

Due to the fact that the cost of the spare parts of the old cars is much higher than the new ones, the premium of the old car insurance policy will be affected significantly. 

Things To Keep In Mind While Buying Insurance For Old Car

You must insure your old car in order to cover legal and financial consequences arising from damage to your vehicle as well as third-party property or life. However, before purchasing an old car insurance policy, keep the following considerations in mind:

  • Compare Insurance Plans:

It is advisable to carefully read all the terms and conditions of all the old insurance policies provided by different insurance companies and choose the best that suits your requirements. 

  • Claim Settlement Ratio:

The higher the claim settlement ratio, the more reliable the insurance company is. Therefore, you should always compare the different policies on the basis of their claim settlement ratio and their process. 

  • Add-on Covers: 

Besides accidental damage, there are a lot more vehicle damages that may burden you financially. Therefore, you should always check what more is covered under a comprehensive old car insurance policy

  • Depreciation Rate: 

The value of a vehicle decreases with each passing year. The depreciation value is subtracted from the total claim settlement amount at the time of claim settlement. So, before purchasing old car insurance coverage, you should know about the rate of depreciation for your vehicle.


Thus, it can be concluded that old cars need comprehensive car insurance policies; It will protect you financially and legally against any damage caused to your vehicle, or any third party.

Also Read: 

Why Is It Important To Get A Car Insurance Coverage?

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