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Buy/Renew Old Car Insurance Policy Online in India 2025

Do you take care of your car more than anything else? If you still maintain and have any car that dates back to 2009 or before then for sure your car is old. The technology used and the components deployed may either be old or obsolete. The risk factor is higher with old cars as these may lack performance. But at anytime the emotional attachment with the old car is irreplaceable.

Old or new, using any car on the road is dangerous and can involve accidents. Hence, buying insurance of old car is essential to save expenses at the time of unfortunate events.

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What is Old Car Insurance?

Buying car insurance policy for cars whose value has depreciated over the years is called Old Car Insurance.

Let’s take an example of an old car whose timing belt suddenly failed when it was on the highway. Suddenly, a noise comes from the engine and gosh! The owner observes that the car is losing speed and bang it goes. Another car from behind hits and both vehicles meet with an accident.

Thus, for an old car, when the chances of failure are higher, car insurance becomes mandatory. It will help the owner to get compensation for its repairs and damage when the cost of maintenance is heavy, and the damage is huge.

The insurance policy operates at the time of physical damage, collision, bodily injury to the owner, third party or third-party property damage. 

Is Insurance of Old Car Mandatory?

  • Yes, as per the Motor Tariff Act, it is mandatory to have at least an active third-party car insurance to drive legally on the Indian roads, no matter if your car is new or old.
  • The poor performance of the old car can cause an accident or a hit. Imagine you own any car manufactured in the year 2005. Its engine has a problem which makes the car stop anywhere or leads to an accident. Hence, in such situations, a car insurance policy will be very useful for the car owner.
  • Imagine that you have an old car, and you give your son to drive it. He lost control and turned over someone else’s car. The bumper of the car came off. This is the case of third-party property damage. Your son will be held liable for the damage and the owner will have to pay for the losses. Thus, it explains the need to buy insurance cover for an old car to help retrieve the money for repairs.

In India, we know that there are two types of cover available under the Motor Insurance. One offers complete coverage in the name of, Comprehensive Car Insurance and the other one is best for the Third-Party Liability coverage. In the above two situations, the importance of insuring an old car is clear.

Why is Insurance for Old Car Important?

Here are some reasons why you should get second hand car insurance plan:  

Financial Protection

Older cars are more prone to breakdowns and damage since their car parts have already faced much wear and tear over the years. Therefore, having insurance for old cars can help cover the costs of repairs or replacements, reducing the financial burden on you.

Protection Against Risks

Having a Comprehensive Car Insurance Policy also protects you against damage to your old car in case of mishaps such as an accident, fire damage or damage and loss due to natural disasters.

Mandatory by Law

Having at least a third-party liability is mandatory by law in India whether you own an old or new car. Driving a vehicle without an active policy could lead to a fine or penalty.

Theft Coverage

Older cars can still be targets for theft. So, protecting your car with any car insurance policy will protect you in case your car is stolen.

Add-Ons

With an old car insurance policy, you also get the benefit of various add-ons available, which can be particularly useful for older cars that might be more likely to break down.

Peace of Mind

Knowing that you are covered with insurance for old car in the event an accident, theft, or other unforeseen situations, provides you with peace of mind.

How to Buy Old Car Insurance with Digit?

Step 1

On the Digit app or website, enter your 2nd hand car’s registration number and mobile number, and click on ‘View Prices’.

Step 2

Select the plan, add-ons and IDV, and click on ‘Continue.’

Step 3

Enter your personal, nominee and vehicle details and click on ‘Pay Now.’

Step 4

Complete the payment and mandatory KYC verification process.

Step 5

You’re done! You’ll receive the policy document via email, SMS and WhatsApp. Also, you can access it 24X7 on the Digit App.

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Factors Affecting Old Car Insurance Premium

Several factors affect old car insurance price, such as:

Age and Condition

The make, model, age, and condition of the car significantly affect the old car insurance price. Older cars or those in poor condition generally have higher premiums due to higher risk of breakdowns and repairs.

Insured Declared Value (IDV)

IDV is the current market value of the car that directly affects the old car insurance price. A higher IDV means a higher premium.

Mileage

The more an old car is driven, the greater the wear and tear, leading to higher premiums.

Type of Policy

The type of old car insurance policy and any additional add-ons chosen also impact the old car insurance price.

Tips to Reduce Old Car Insurance Price

Here’s how you can take the help of some strategies to reduce the old car insurance price:

Compare Quotes

Compare quotes from various insurance companies online to find the best old car insurance price and plan that suits your needs.

Choose the Right Insurance Policy

The most suitable option for an old car insurance plan is a third-party policy since it is mandatory and offers basic coverage. Also, you can opt for only the required add-ons with a comprehensive insurance policy to keep the premium low.  

Maintain a Clean Driving Record

Safe driving habits can earn you a discount on old car insurance price in the form of No Claim Bonus.  

What to Look for When Insuring an Old Car?

Before you get the insurance for your old car, it will be good if you look for a few things like:

Insurance Company

Compare the coverage offered by your insurer against others. Each piece of information is available online thus making it easy for you to compare.

Policy conditions

Check the policy terms and conditions like deductible applicable. Insurance is to save you from financial burden hence check if the purpose is met or not.

Discounts

What is the percentage of discount you will get from the insurer.

Things to Know Before Buying Insurance for Old Car

Liabilities can be huge and beyond our capacity when it comes to damage to our car, third- party bodily injury or third-party car. Not everyone can afford these expenses and gradually the buying insurance policy became relevant. But before buying car insurance for second hand car, we must know a few things like:

  • Compare Online: There are more than 25 insurance companies in India with each having its policy limits under the Motor Product. It will be wise if you know the complete insurance policy wordings and its conditions before insuring an old car. Also, decide what kind of cover you are looking for - Comprehensive Cover or Third-Party Liability Cover.
  • Claim Settlement Process: Buying an old car would be as easy as purchasing insurance cover for it. But you should know the car insurance claim process of a particular insurance company. Also check how long do they take to settle the claim.
  • Insured Declared Value (IDV): Know the value of your old car at the time of insurance. The value of a car decreases every year by some percentage. So, before you spend a single penny for the premium, you should realize how much you will benefit from the insurance.
  • No Claim Bonus: If you do not claim for small mishaps and accidents, then you get a bonus for each year, known as no claim bonus in car insurance. The rates are as below, and you should be informed of it.

Claim Free Years No Claim Bonus
After 1 year  20% 
After 2 years  25% 
After 3 years  35% 
After 4 years  45% 
After 5 years  50% 

If you wish to sell the old car and buy a new one anytime in the future, the NCB earned will be transferred to the new car.

  • Depreciation: Every vehicle you own has a value which depreciates over the years. In case of any mishap, the reimbursement will be per depreciation applicable for the replacement of the parts of the vehicle. As the age of the car increases the percentage of the depreciation increases. The idea is to know whether it will be helpful to buy insurance or not.

Age of the Vehicle Depreciation
1 year < age < 2 years  10% 
2 years < age < 3 years  15% 
3 years < age < 4 years  25% 
4 years < age < 5 years  35% 
5 years < age < 10 years  40% 
10 years < age  50% 

  • Add-On Covers, if any: At the time of insuring your old car, you can ask the insurer about car insurance add-on covers, if any. Some of the covers you can ask for are a medical cover, passenger cover, zero depreciation cover, consumables cover, engine protection plan and others. You can pay an extra premium to purchase these covers but it will be beneficial for you.
  • Discounting: Other than the No Claim Bonus, the owner of the car can get an additional discount if he has installed an anti-theft device in the car or is a member of the Automobile Association.

Read more: Zero Depreciation Car Insurance

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