Know How Older Cars Have Cheaper Insurance Policies

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There are a number of factors which insurance companies take into account at the time of calculating your car insurance prices. One of the foremost of these factors is the age of your car. It is usually cheaper to insure an older car as they have lesser evaluations. Additionally, these cars also do not come with the state of the art safety features that are present in new cars. It is important for you to understand some of the differences between old and new vehicles which accounts for the distinction in insurance cost.

Why older cars have cheaper insurance rate

Older cars are usually cheaper to insure because of depreciation which steadily reduces the value of your car. When the car has less valuation it will mean that there is lesser liability on your insurance company. In this regard, the company will only incur the cost of repairing the car in covering for the car’s restoration. When you compare car insurance online you will find that newer vehicles are always more expensive to restore because of their value which makes coverage costs quite high for the company. Newer cars have high end safety features such as automatic braking, back up cameras and so on and thus can prove to be quite a pocket-pinch if they stop working.

Various insurance plans for older cars

It is important that you choose a policy from the various insurance plans available for older cars wherein the premium will be suitable for the specifications for your car. It is possible for you to pay considerably lesser premium amount if you choose the plan that is best suited to the age and valuation of your car. For instance, if your car is rather old, it is advisable to go for third party car insurance. However, if your car is only moderately old, you may consider going for comprehensive car insurance policy. It is also possible for you to ask questions about what is an ideal insurance premium rate for you on the web portal of companies such as Bajaj Allianz General Insurance. This will help you move closer towards cheap car insurance in India and make an informed decision.


It must be understood that most insurance providers offer coverages on removal of damaged parts of your ageing vehicle. Such physical damages include being in a collision accident or your car being vandalized. Older cars are also given coverage in case they are stolen or have been at fault in a road accident. However, you will not receive coverage on damages caused to the car due to regular wear or tear or mechanical breakdown. You may be able to considerably reduce your car insurance prices if you remove the clause of physical damage protection from your insurance file which is not ideal.

Benefits of insurance on older cars

There are a number of benefits of availing car insurance for your older car. Most leading insurance providing companies open the doors of their network of cashless garages to you. This happens as soon as you sign up for their insurance policies. Therefore, you can check the problems your old car is facing for free from here. Through these policies you can also choose to go for the roadside assistance cover which is far more crucial for an older car.

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