Old Car Insurance

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Manasvi Gupta

Written By

Manasvi Gupta

Manasvi Gupta

Manasvi Gupta

Content Writer

Storyteller at heart, Manasvi brings 4 years of content and marketing experience to Digit. Whether it's writing SEO-optimised articles or a researched and insightful blog, she strives to transform ideas into creating impactful and engaging content.

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Manasvi Gupta

Manasvi Gupta

Content Writer

Storyteller at heart, Manasvi brings 4 years of content and marketing experience to Digit. Whether it's writing SEO-optimised articles or a researched and insightful blog, she strives to transform ideas into creating impactful and engaging content.

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Reviewed by:

Mayur Kacholiya

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Mayur Kacholiya

Product Head - Motor

Mayur specializes in motor insurance and is responsible for overseeing the development and management of motor insurance products. With expertise in product strategy and market analysis, he focuses on developing customer-centric insurance solutions.

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mayur-black-white-test

Mayur Kacholiya

Product Head - Motor

Mayur specializes in motor insurance and is responsible for overseeing the development and management of motor insurance products. With expertise in product strategy and market analysis, he focuses on developing customer-centric insurance solutions.

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.

Table of Contents

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What is Old Car Insurance?

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. 

Disclaimer: The total number of claims settled, amount paid in claims and the total policies sold count is for private car policies since inception till 31st December-2024. 96% claims settled for Overall Motor line of business of Digit. CSR Is calculated for FY 24-25. CSR Ratio is count of (Claims paid + Claims Closed) / (Claims O/S at Start + Claims Reported - Claims O/S at End). 9000+ cashless garage network count as of 31st March-2025.

Is Insurance of Old Car Mandatory?

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.

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Why is Insurance for Old Car Important?

why is insurance for old car important

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.

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Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25

Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25

When it came to motor insurance specifically, Digit showcased a high-efficiency Claims Settlement Ratio (CSR), with 96% of motor claims settled seamlessly and we make this simple with:

  • Smartphone-enabled self-inspection process, with which you can file your claim in minutes!

  • Cashless Claims at over 9000 garages in India, so you can get your two-wheeler fixed without stress. 

  • Everything digital and paperless. No need for hard copies—just upload everything on our app, and you're all set!

What Our Customers Have to Say about Us

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Digit Car Insurance in News!

Monsoon Car Woes: Protect Your Car With Comprehensive Motor Insurance And Add-Ons

  • 19 Oct 2025
  • Business Insider
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As EV cover picks pace, battery coverage is the name of the game

  • 18 Apr 2025
  • Times of India
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Go Digit posts 3x jump in Q2 net profit; gross premium collected at Rs 2,368 crore

  • 24 Oct 2024
  • The Economic Times
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Drive less, pay less: Why 'Pay as You Drive' insurance may be right for you

  • 21 Aug 2024
  • Business Standard
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EV insurance market is expected to grow at a CAGR of over 40%

  • 16 Feb 2024
  • ET Auto
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Prices cut, but are EVs more economical than petrol cars?

  • 28 Feb 2024
  • Mint
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https://www.zeebiz.com/personal-finance/news-pay-as-you-drive-payd-motor-car-insurance-industry-ad-on-premium-policy-ireda-bajaj-chola-zuno-policybazaar-digit-insurance-278686

Pay As You Drive (PAYD): Motor insurance ad-on that customises your premium as per driving distance

  • 1 Mar 2024
  • Zee Business
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https://www.businessinsider.in/personal-finance/dogs-coconuts-and-monkeys-insure-your-vehicles-from-their-mayhem-right-now/articleshow/111140109.cms

Dogs, coconuts and monkeys: Insure your vehicles from their mayhem right now!

  • 20 June 2024
  • Business Insider
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Digit Insurance unveils "That’s it!” campaign with Virat Kohli, highlighting easy insurance claims

  • 19 June 2024
  • AFaqs!
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Drive less, pay less: Why 'Pay as You Drive' insurance may be right for you

  • 22 Aug 2024
  • Business Standard
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How to Buy/Renew Old Car Insurance with Digit?

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Enter Car Details

On the Digit App or website, enter car registration number and select the policy status.

Choose a Plan

Select the type of car insurance plan and choose desired add-ons.

Enter Personal Details

Enter your personal, nominee and vehicle details, and move to the next step.

Make Payment

Complete the payment and mandatory KYC verification process.

That's It!

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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Login

Login to Digit App or website and go to the ‘My Policy’ section.

Select Policy

Select the policy pending for renewal and click on ‘Renew Policy.’

Choose a Plan

Next, select the add-ons and tenure and confirm the details, and move to the next step.

Make Payment

Complete the payment and mandatory KYC verification process.

That's It!

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

Why Choose Digit?

We treat our customers like VIPs, know how…

Cashless Repairs

9000+ Cashless Network Garages for you to choose from across India

Smartphone-Enabled Self Inspection

Just click the damages on your phone and you are done

Super-Fast Claims

We’ve settled 96% of all claims for private cars! Experience claims that make you go “that’s it?”

24*7 Support

24*7 call facility even on National Holidays

Customize your Vehicle IDV

Customize Your Vehicle IDV

With us, you can customize your vehicle IDV as per your choice!

How is AI making Digit’s Motor Insurance Claim Process Faster & Smarter

claims phone screen

How is AI making Digit’s Motor Insurance Claim Process Faster & Smarter

At Digit, we believe filing a motor insurance claim should be simple, not stressful. That’s why we’ve built intelligent automation into every step of the process—so you can get back on the road, faster.

  • AI That Sees What You See: When you upload a video of the damage through our app, our AI doesn’t just watch—it analyses. Using advanced image recognition, it assesses the extent of the damage, classifies it, and helps determine the next steps. This means quicker evaluations, fewer delays, and a smoother experience for you.
  • Automated Document Processing: From inspection reports to claim forms, our AI systems automatically sort and process your documents. This reduces manual effort, minimises errors, and speeds up approvals. And with a human-in-the-loop approach, we ensure every claim is handled with both precision and empathy.
  • Automation That Works Behind the Scenes: Our systems also fetch claim details directly from partner platforms, eliminating the need for repetitive data entry. Whether it’s Bulk Policy Issuance or real-time claim registration, automation helps us move faster—so you don’t have to wait.

67% Car Repair Work Approvals Done within 12 Hours

67% Car Repair Work Approvals Done within 12 Hours

In H2 FY25, our average car repair approval time was 14 hours and 46 minutes, with 67% of approvals completed within 12 hours. Only a few cases experienced longer wait times, typically due to complex assessments or the need for additional documentation, highlighting our commitment to minimising delays and maximising efficiency.

Rest assured, we carefully monitor every step to ensure your car is back on the road as swiftly as possible!

Digit Settled 9.16 Lakh Claims with 99.9950% Accuracy in FY'25

The below data is for all the products as given in the table below.

Settled 9.16 Lakh Claims Settled

Settled 9.16 Lakh Claims Settled

That’s how many times we showed up for our customers in FY 2024–25. Behind each of those numbers is a mishap, and we were right there, making sure things got sorted quickly. 

Out of these, nearly ₹6.52 lakh were motor insurance claims alone—proof that we’re there when it matters most, whether it’s something trivial or serious. 

₹4,622 Crore Paid in Claims

₹4,622 Crore Paid in Claims

From minor hiccups to major emergencies, we made sure our customers didn’t have to carry the financial burden alone. Quick settlements, zero confusion, and real peace of mind. 

Of this, ₹2,199 crore was paid out under motor insurance, covering everything from accidents to unexpected situations like rat damage.

99.9950% Claims Accuracy

99.9950% Claims Accuracy

Out of 9.16 lakh claims in FY 2024–25, only 256 were escalated to the Hon’ble Ombudsman^. Out of which only 46# were escalated and ruled in favour of the customer. This significantly proves the claim's accuracy rate of 99.9950%.

For Motor Claims, out of 256 escalated claims for Digit, just 124 were motor-related. By year-end, 104 motor claims were closed, with 28 resolved through mediation. Only 26 health claim decisions went in favour of customers.

Ombudsman Complaints for FY 2024-25

The below information is a summary of escalated claim cases reviewed by the Hon’ble Ombudsman in FY 2024–25. 

LOB Total Claims Paid (in number) Total Claims Amounts Settled Total Complaints that went to Ombudsman Total Complaints where final decision was given Total Complaints Settled via Mediation Total Decisions in favour of Customer
Health (including PA, travel) 2,18,082 ₹1,374.64 Crore 110 86 21 18
Motor(OD + TP, Including theft, PA) 6,51,954 ₹2,199.58 Crore 124 104 28 26
Other LOBs (miscellaneous) 45,642 ₹1,047.34 Crore 22 17 3 3
Grand Total 9,15,678 ₹4,621.56 Crore 256 207 52 47

Disclaimer: ^This data pertains to cases reported to various offices of the Hon’ble Insurance Ombudsman. Customers have the option to approach the Consumer forum as well; #Only includes complaints arising from claims. The company had a total of 11 complaints arising from non-claims, i.e., policy-related grievances (5 won, 2 settled, 1 lost, and 3 outstanding). One non-claim complaint where the decision went in favour of the complainant is not included in the numerator while calculating claims accuracy.

Interesting Claim Stories & Insights from Digit Customers

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A Digit Car Insurance customer received a total loss claim of ₹48.70 Lakh in Mumbai

In a recent case from Mumbai, one of our policyholders experienced a total loss after their private car sustained severe damage. Fortunately, the vehicle was insured, and we processed a claim payout of ₹48.70 lakh. This case highlights the importance of having dependable insurance coverage to stay prepared for life’s unexpected turns.
car tp tr

Digit Settled a third party claim worth ₹ 1.5 crores in Raipur, Chhattisgarh

In a recent case from Raipur, a private car was involved in an accident that tragically resulted in a fatality. While such incidents are deeply distressing, they also bring significant financial and legal responsibilities. Fortunately, the vehicle was covered under our third-party insurance policy, which enabled a compensation payout of ₹1.5 crore to the affected party.

This case highlights the critical importance of third-party liability coverage in motor insurance, offering essential financial protection during life’s most difficult moments.

Flood Damage Claims Cross ₹95 Crore, with ₹3 Crore Settled in Azitnagar

When we think of car insurance, we often imagine accidents or theft. But sometimes, the most significant threats come from nature itself. Azitnagar in the Krishna district, had 529 flood-related claims filed this year, with payouts exceeding ₹3 crore. Across the country, we paid out more than ₹95 crore in flood and inundation claims.
unlucky customer

Seven Accident Claims in One Year on One Car, All Approved

One customer in Patna had a year they won’t forget. Their brand-new Kia Carens was involved in not one, not two, but seven accidents. Six happened while driving, and one happened while the car was parked. It was an actual test of their insurance policy and it passed. Every claim was covered, proving that dependable coverage can make all the difference when things go wrong again and again.

Premium Protection For Premium Vehicles

This year, we received some standout premium payments across different vehicle types. A Ferrari topped the list in the four-wheeler category with a premium of ₹8.04 lakh. In the two-wheeler segment, a Hayabusa was insured with a premium of ₹44,000. And in the commercial vehicle category, a Volvo L150 wheel loader was covered with a premium of ₹3.53 lakh. This highlights how our insurance scales to match the value and purpose of every vehicle, whether it’s built for speed or style
bond number plate

Over 670+ Vehicles Insured with ‘007’ Registration

This year, over 670 vehicles insured with us proudly carried the iconic Bond number “007”. Among them, one standout customer paid a premium of ₹5 lakh. This highlights how our insurance supports unique preferences while ensuring complete coverage.

Factors Affecting Old Car Insurance Premium

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

tips to reduce 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?

What to Look for When Insuring an Old Car?

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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