The answer is “it depends”, on the car and the situation of the car and its parts at that point of time. As vehicles get older, it makes sense to consider what types of car insurance you should carry on your older automobiles.
Your own personal financial situation and the value of the vehicle are important variables to consider when making this decision. Automatically dropping full coverage when your vehicle hits a certain age may not the right decision for you. Most often than not people go for the cheapest car insurance plans however full coverage auto insurance can certainly give you peace of mind and make it easier to take your vehicle out on the road. But full coverage auto insurance can also be expensive.
The legal life of a Car in India ranges from 10–15 years. A car can easily complete its legal life if serviced properly on time and driven well by drivers. People shouldn’t rev the engine of car unnecessarily. Each damage and repair must be done at time. A car can easily last longer depending on fuel type, if we follow these guidelines
If you have an older vehicle, it often doesn’t make sense to carry full coverage on it. That’s because, if you have an accident, the car has so little value that you’re not going to get a big, fat check to replace it.
When should you have full insurance coverage?
You can buy a Comprehensive Cover for the old car if you have continuously got the insurance of it. Third-Party Liability Cover is mandatory to be taken.
When should you consider stopping having full car insurance coverage?
Is your car in the last leg of its life? Downgrading your comprehensive insurance maybe a good option to help you save money. Similar to collision coverage, dropping comprehensive coverage is ideal if your car’s market value is lower than or close to your policy’s deductible.
But before you get the insurance for your old car, it will be good if you look for a few things like:
- The right cover: It is good if you compare the coverage offered by your company with others insurance companies. It will be wise if you know the complete insurance policy wordings and its conditions before insuring an old car.
- Claim Settlement Process: Buying an old car could be as easy as purchasing an insurance cover for it. Check how long they take to settle a claim and what is their claim process.
- Insured Declared Value (IDV): Value for a car decreases every year by some percentage. Know the worth of your old car at the time of insurance. Check how much will you benefit from the insurance, before you spend any money.
- No Claim Bonus: 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.
Insurance does have a psychological benefit beyond any direct financial benefits – you can be confident in knowing that even if something bad happens, you’re covered.