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A List of All the Details about Getting Comprehensive Car Insurance for Your Old Car

By Juhi Walia
27 September 2022, 5:15 PM

Everyone with an old car is probably worried about getting or not getting comprehensive car insurance for their four-wheeler. But there is no definite answer to this. Getting insurance depends on the age and model of your car. The general rule of thumb is to check your car’s cash value and compare it to the cost of your comprehensive car insurance. This will tell you the worth of your car and does a comprehensive plan make financial sense or not!

In some cases, the car is a classic, and the older it is, the better it gets in value. In such cases, it is a no-brainer to get comprehensive car insurance.

You also need to consider the financial inputs you are willing to put into car insurance. If you are low on savings, but your car insurance policy is not causing a dent in it, it is most advisable to get one.

Also, if the said car is old but is used every day, it makes sense to have a comprehensive car insurance policy. 

Importance of Insuring Old Cars with Comprehensive Insurance

If the financial commitments of premiums are not causing a dent in your income, you can opt for a comprehensive car insurance plan . More often than not, it would serve as a benefit for you:

  1. The older the car, the more the mishaps. Your old car may need more help with the spare parts as it breaks down more often. This is why having comprehensive car insurance will be helpful to you. In case such an old car is in an accident, a comprehensive plan will help take care of the many damages that would have occurred. The cost of such repairs could blow a hole in your pocket, and a car insurance policy would come in handy.
  2. There is another ‘need to have a comprehensive plan for an old car’ scenario. The owner must pay for any third-party liability whenever an old car is in an accident. This is why it is necessary to have a comprehensive plan.

Choose the option that makes the most financial sense to you. Ensure you do not ignore any policy details that would be beneficial for your old car. 

How to Approach When Buying Old Car Comprehensive Plan?

The main purpose of getting insurance for an old car is to reduce the risk of liabilities to the owner. So, the terms and conditions of your policy are decided by how much it will cover in losses and damages. Here are a few things you should check before buying:

Know the Insurance Details

Know all the details about your insurance plan. Check how much it is in line with the needs of your car. If your car is a classic, do not take a step back from adding a few extra protective covers. And if the car is a normal variant, ensure that the insurance details cover most of the liability, whether financial or legal. The owner shall have complete protection in any case.

Claim Settlement

You should know the process of car insurance claim settlement. For an old car owner, this should be one of the important things to check in a car insurance policy. If the claim settlement process is too hectic and cumbersome, check with other insurance providers. Choose the best car insurance policy because claim settlement is the primary thing you will need in a policy.

Insured Declared Value

It is necessary to know the value of your car before or at the time of purchasing insurance. This cover will give protection against any depreciation caused thereafter. Your car will be insured at a much lower rate because the depreciation calculated on old cars is hefty.

No-claim Bonus

In case you don’t file for any claims during your tenure, you shall be eligible for a no-claim bonus in car insurance at the time of renewal. All the policies provide for this add-on, but you should check this with your insurance provider. 

Add-on covers

There are a variety of car insurance add-on covers available for you. So, you should ask your insurance provider if they have medical cover, engine protection, personal belongings, tyre protection, lost keys protection, on-the-road assistance, etc., before buying. However, many insurers could deny you add-ons such as zero depreciation. Such add-ons are mostly available to cars aged up to five years only. In case your car's age is more than that, you will likely be denied for car insurance add-ons.

How to Decide If Your Car Needs Comprehensive Insurance?

The answer to this question comes down to the individual point of view. This means that you need to choose to add a comprehensive insurance plan to your car only if it suits your finances. If, after considering all the aspects, you find having car insurance to be an added cost with no prominent return, you can choose not to have comprehensive insurance. Instead, you can sell that car and use the proceeds of it to buy a new one and get it insured with comprehensive insurance.

However, If, after studying the market data and the valuation of your old car, the financial responsibility of having comprehensive car insurance seems amicable, you must go for it. If you have an old classic car or a high-valuation car, it makes complete sense to have this type of insurance policy. 


There is no fixed answer to buying comprehensive car insurance for your old car. Check the condition of your vehicle and your finances and savings to make an informed decision. Look for low-cost car insurance options because that way, you can afford car insurance and not put a dent in your savings. Make sure to contact your insurance provider for details before buying.

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1. Is comprehensive car insurance mandatory?

No. Comprehensive car insurance is not mandatory at all. You need to have third-party insurance for your car as compulsory insurance. People generally choose comprehensive car insurance because it will help them customise the policy to their car's needs.

2. Will comprehensive car insurance cover fire loss in old cars?

It is one of the main points of a comprehensive insurance policy. You can check with your insurance provider to know about it precisely, but your insurance policy most definitely covers the loss that happens to your car with fire.

3. Can I pay the premium on my old car’s insurance in installments?

No. You cannot pay your premium in installments. It is an established rule in the Section 64VB of the Insurance Act, 1938, wherein the policyholder has to pay the premium amount in full.

4. Will my premium amount be high if I am paying for an old car?

No. There is no additional price on your premium just because your car is older. You can check more details about changing premium prices with your insurance provider.

5. Can I drop the plan if I have a comprehensive car insurance plan and my four-wheeler is getting old?

Yes. You always have an option to exit your insurance. But after that, the insurance provider will not be accountable for the liabilities if your car undergoes any loss or damage. Further, you risk paying fines without third-party liability cover included in a comprehensive policy.

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