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Old car insurance refers to a type of car insurance that provides coverage to old cars, second-hand cars, or used cars. Car insurance for old cars provides coverage against damages caused to the old car due to accidents, calamities (natural/manmade), theft, etc. It provides the same coverage as a new car insurance plan. Hence, it covers both third-party liabilities and own damage.
It is extremely important to insure an old car. In fact, irrespective of the age of the vehicle, whether it's old or new, buying at least Third-party insurance is mandatory as per law. Here are the top reasons for buying old car insurance policy.
Protects Against Risks: A Comprehensive Car Insurance Policy provides coverage against damages to your old car in case of mishaps such as an accident, fire damages or damages due to natural/manmade disasters.
Mandatory for All Vehicles: It doesn’t matter if you own an old or new car. Purchasing at least a Third-Party Car Insurance Plan is compulsory to comply with the Motor Vehicles Act. Driving a vehicle without a valid motor insurance policy is an offence, and you can be penalised for doing so.
Third-Party Liability Coverage: The Old Car Insurance Policy covers damages to third-party property or life. If your old car causes damage to a third party or injures a third party in an accident, the insurance policy will cover such damages/losses.
Personal Accident Coverage: An Old Car Insurance Plan not only covers your car but also provides coverage against injury/accidental death of the owner/driver. For instance, if you are injured in a car accident, then the insurance policy will cover the medical expenses incurred due to the treatment of the injury. Note that this is a mandatory cover that needs to be purchased separately.
Theft of the Insured Car: Car theft is one of the most notorious crimes which is on the rise in our country. An old car insurance policy is the solution to protect yourself from this crime. Setting the correct Insured Declared Value (IDV) while buying insurance enables you to receive the right amount from your insurer in case of theft.
When you buy a used car, the first thing to do is transfer the ownership to your name. Similarly, the second-hand car may come with an insurance policy that is valid for a few months/years. Hence, transferring the insurance is also necessary. Here are the steps you can follow to get the vehicle ownership transfer and insurance transfer done.
Visit your respective RTO (Regional Transport Office) and submit the application for vehicle ownership transfer.
Submit all the relevant documents and pay the fees.
Once the RC transfer is done, you can contact the insurer for the insurance transfer.
Submit the new proposal form along with the relevant documents.
Pay the insurance transfer fees, and the insurance company will transfer the policy to your name.
Follow the below steps for buying used car insurance or old car insurance renewal online.
Step 1: Log on to the official website of the insurance company (Example - www.acko.com).
Step 2: Enter vehicle details such as make, model/variant, registration date, registration number and city you drive.
Step 3: Next, choose the insurance plan: Third-Party or Comprehensive Insurance Plan.
Step 4: Enter details of the previous insurance policy, such as policy expiry date, claims raised and No Claim Bonus details.
Step 5: Next, you will get the insurance plan quote with the premium amount to be paid.
Step 6: If you have opted for a Comprehensive Insurance Policy, then you can further enhance the coverage by choosing available add-ons at a nominal increase of premium.
Step 7: Complete the payment process via available digital payment modes.
Step 8: Once the payment is complete, the Certificate of Insurance will be emailed to you. This way, you can complete the old car insurance renewal process or buy used car insurance.
Buying car insurance for old cars covers you against legal and financial liabilities. Hence, it is crucial that you buy the right insurance plan for a used car. Here are a few points you can keep in mind while buying second hand car insurance.
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.
Determine the Value of Your Old Car: Before buying a car insurance policy for your old car, determine the current market value of the vehicle. The value depreciates with each passing year, and depending on the value of the vehicle, the IDV is calculated. The IDV is the main factor which decides the insurance premium.
Depreciation Rate: The value of a vehicle depreciates with each passing year. During the claim settlement, the depreciation value is deducted from the final claim settlement amount. So, you should be aware of the rate of depreciation for your car before buying an insurance policy.
Add-on Covers: 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 Engine Protect cover, Passenger cover, and consumables cover. You will end up paying a slightly higher premium, but it will be beneficial in the long run.
Claim History: Know the claim history of the previous insurance policy if you are switching insurance companies or renewing the existing policy. If you have made zero claims, you can avail of the No Claim Bonus discount offered by the insurer. You can get up to 50% discount depending on the number of claim-free years.
Additional Discounts: Apart from the No Claim Bonus discount, you can also get an additional discount on the insurance policy by installing an anti-theft/security device on your old car. With the reduced risk of theft, the insurer might reduce the insurance premium.
Check Claim Settlement Process: Before buying an insurance policy, thoroughly go through the claim settlement process of the insurance company. Make sure that the process of raising a claim is simple and hassle-free, and always choose an insurer which has a quick turnaround time for claim settlement.
Transfer the Policy or Buy a New One: If you have bought a second-hand car, you must transfer the car insurance policy within 14 days of purchase, or else you can buy new car insurance as per your requirements.
Note: You can ask the previous owner of the car to terminate the policy if you do not wish to transfer the insurance policy.
Here are some of the important factors that impact the old car insurance premium.
The make and model of the second-hand car has a huge impact on the car insurance premium. If the used car is a high-end model, the premium will also be high due to the high market value of the model.
The market value of the car is nothing but the Insured Declared Value of the vehicle. And depending on the IDV, the insurer calculates the insurance premium. The higher the value of the car, the higher the premium. So, always declare the correct market value of the car while buying old car insurance.
Be it an old or a new car, one common factor affecting the Insurance premium is the mileage. The number of kilometres driven is one of the important factors which determines the old car insurance premium.
Here are the advantages of purchasing old car insurance from ACKO.
ACKO is a digital-first insurance company, and you can buy old car insurance online without any paperwork. Whether you are buying or renewing a car insurance policy, the entire process can be completed online. Moreover, the digital payment modes make the process of buying old car insurance online even simpler.
Raising a car insurance claim at ACKO is super easy! Just log on to the website/app and apply for a claim online. The best part is that minor claims will be settled instantly. While major claims will be settled in a few hours/days, depending on the severity of the damage to the insured vehicle.
ACKO provides insurance plan quotes depending on the ideal Insured Declared Value for your old car. You can compare different insurance plans and add-on covers for your used car before purchasing the insurance policy.
Classic car insurance is a category of motor insurance which is available for old or vintage cars. The cars certified by VCCCI (Vintage and Classic Car Club of India) are eligible for the Classic Auto Insurance Plan. If you have a vintage car, which is in good condition and certified by VCCI, you can purchase the Classic/Vintage Car Insurance Policy.
Classic Car Insurance works similar to a new car insurance policy. You can purchase a Third-Party or a Comprehensive Insurance Policy for your classic car. Buying a Third-Party Insurance Policy is compulsory, while the Comprehensive Policy is optional. The fundamentals of the Classic Auto Insurance is similar to any other new car insurance plan.
A Comprehensive Classic Auto Insurance provides coverage against damages to your classic car. On the other hand, the Third-Party Insurance Plan for classic cars provides only mandatory coverage against damage/loss to third-party property or life. A comprehensive Insurance Plan costs more than a Third-Party Policy, but it covers the expenses incurred due to vehicle repair works or replacement of parts.
Here is a detailed guide on how to buy or renew classic car insurance.
Determine the current value of your vintage/classic car.
Make sure that your vintage/classic car is certified by the VCCCI.
Share all the details of the vehicle with the insurer, along with the required documents.
Come to a mutual agreement with the insurer on the Insured Declared Value or sum insured amount.
Choose your insurance plan and add-ons.
Get the classic car insurance policy quote from the insurer.
Pay the premium and collect the vintage car insurance policy certificate.
Used Car Insurance FAQs
A comprehensive insurance plan is better for an old car as it offers coverage against third-party liabilities and own damage.
Typically, most insurance providers do not offer package insurance plans (third-party and own damage cover) as the risk factor is higher. However, you can check with the insurer about your requirements to find out more information.
You can insure a car with expired car insurance. You can renew the policy within the 90-day grace period after the policy expiry. After the grace period, you must purchase a new policy.
A Comprehensive Car Insurance policy is best for a second hand car as it provides coverage against own damage and third-party liabilities.
A Third-Party Car Insurance Policy is mandatory, be it a new or old car. But you can consider buying the Comprehensive Insurance Policy for your old car as it provides all-round coverage for your car.
Yes, it is worth it to buy a Comprehensive Insurance Plan for your vintage car. The Comprehensive policy covers repair costs and parts replacement costs, and a vintage car is prone to damages or components failures.
If the car is more than 5 years old, then the insurance premium depends on various factors such as the condition/value of the car, geographical location and the insurance plan and add-ons you choose. You have to come to a mutual agreement with the insurer for the sum insured, and depending on IDV, the premium is calculated.
If you have purchased a second-hand car, make sure that you transfer the NCB discount benefits, if any. You can avail the NCB discount while purchasing a new policy or renewing the existing policy. Apart from that, you can also install an anti-theft/security device on your old car to reduce the cost of insurance. With the reduced risk of theft, the insurer will give some discount while purchasing/renewing the policy.
Yes, generally, the current market value of a used car is less when compared to a new car. So, the insurance premium for old car insurance will be less when compared to new car insurance. But it also depends on various factors. The old car insurance premium depends on the make and model of the vehicle. For instance, if the used car is an exotic high-end model, then the insurance premium will be high.
If you have purchased a used car and did not transfer the insurance policy, then you cannot make any claims in case of any mishaps. The insurance company will reject your claim as you have not transferred the insurance policy. Ideally, you should transfer the insurance policy within 14 days of purchase of a second-hand car. Also, you will face legal issues if you fail to get used car insurance transfer.
As per the rules, you have to transfer the insurance policy within 14 days of the second-hand vehicle purchase. Now, for 14 days, the third-party liability cover will get automatically transferred. Post the 14 days, if the policy is not transferred, the insurance company will not bear any losses incurred by you due to third-party or own damage.
If your vintage car is certified by the VCCCI (Vintage and Classic Car Club of India) and you have all the documents of the vehicle, then your vintage car is eligible for vintage car insurance.
Yes, similar to new cars, vintage cars should also have mandatory Third-Party Liability coverage.
The claim settlement for vintage cars works similar to new car insurance claims. If your vintage car is damaged in an accident or stolen, you can raise a claim with the insurer. After verifying the damaged vehicle and submitted documents, the insurer will pay-out the claim settlement amount.
Have queries related to ACKO’s car insurance policies? Refer to our Policy Wordings for detailed information or reach out to us via email or phone using the information below
Write to us at [email protected]
Call us on 1800 266 2256