Is Comprehensive Car Insurance Worth It for Old Cars?

As vehicles age, owners often reassess the type of insurance cover they maintain. While third-party insurance is mandatory for even older cars, comprehensive car insurance is often considered unnecessary for older vehicles due to depreciation and lower resale value.

However, deciding whether to continue with comprehensive coverage involves more than just the age of the car. Usage patterns, repair costs and exposure to risk all influence whether comprehensive insurance remains a practical choice.

What Does Comprehensive Car Insurance Offer Even for Old Cars?

A standard car insurance comprehensive policy combines third-party liability cover with protection against damage to the insured vehicle. This includes losses from accidents, theft, fire, vandalism and natural calamities.

While the Insured Declared Value (IDV) of an older car is lower, the scope of coverage remains the same unless restricted by policy terms. Understanding this baseline coverage is essential before evaluating its relevance for an ageing vehicle.

Factors to Consider Before Choosing Comprehensive Insurance for Older Cars

● Vehicle Condition: Older cars that have been well maintained can still involve high repair costs, particularly when damage affects core components rather than cosmetic parts.

● Spare Part Availability: For some models, replacement parts are either expensive or not easily available, which can increase out-of-pocket repair expenses.

● Usage: A vehicle that is driven frequently is exposed to more everyday risks on the road compared to one used occasionally.

● Parking Environment: Cars parked in open areas or along the roadside are generally more exposed to accidental damage or theft than those kept in secure parking.

When Comprehensive Insurance Makes More Sense for Old Cars

Comprehensive insurance may be worthwhile for older cars that remain in active use, especially in urban areas with dense traffic. Vehicles parked in unsecured locations or regions prone to floods, storms or theft are all exposed to higher risk. In such cases, even a lower IDV does not eliminate the financial impact of repairs or replacement following an insured event.

Additionally, owners who prefer predictable repair costs may find value in retaining comprehensive coverage.

Situations Where Third-Party Insurance May Be Sufficient

There are situations where switching to third-party insurance may be reasonable. If the vehicle has a very low market value, is rarely used or is nearing the end of its operational life, the cost of comprehensive premiums may outweigh the benefits. Owners who are comfortable managing repair expenses independently may also opt for basic third-party cover to meet legal requirements.

How can Add-Ons improve Value for Old Cars?

Add-ons can improve the practicality of comprehensive insurance for older vehicles. Covers such as roadside assistance and engine protection may be available depending on the insurer and vehicle condition. Zero depreciation cover, however, is typically limited to newer cars and is generally not offered for vehicles older than five years.

These add-ons allow policyholders to customise coverage instead of relying on a standard one-size-fits-all approach.

Why TATA AIG is a Smart Choice for Old Cars

Whether comprehensive car insurance is worthwhile for an old car depends on individual usage, risk exposure and maintenance costs.

With TATA AIG, you can choose flexible and comprehensive car insurance policies with optional add-ons and transparent policy terms. By assessing the vehicle’s condition and selecting appropriate coverage options, owners of older cars can make informed insurance decisions that balance cost with practical protection.

This is an advertorial. The article is published as received.