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Old 16th June 2021, 18:54   #1
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Third Party vs Comprehensive Insurance for an older car

Hi everyone,

I've been reading on Team-BHP for 4 years, and it's only in 2021 that I got my membership approved after 3 rejections, and I've been enjoying my drive here even more since then.

The car in question for this thread is a Maruti Suzuki Esteem Vxi (2007). This is the only car we own, and we've been loving her to core till date. With a sense of confidence, I can proudly say that the Esteem can give many cars of the same segment a run for their money, even today!

But due to 15 year car life in Delhi NCT (thanks to the NGT), she's in the penultimate year of registration in Delhi, and her registration will expire in June 2022. The insurance renewal of the car is due on 26 June every year, and for this year's renewal, I'm confused as to whether I should go for a comprehensive policy renewal or third party insurance to save upon some moolah (the lockdowns haven't helped).

I'd love to hear out from BHPians of their experiences and advices on the same.

Couldn't find a relevant thread pertaining to the same that's why creating a new one. Mods kindly merge if a similar thread already exists.

Piyush
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Old 16th June 2021, 19:46   #2
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Re: Third Party vs Comprehensive Insurance for an older car

I would still say you should go for comprehensive insurance only. Reason being, it won't be that much more expensive. On such cheap old cars, it is the pricey 3rd-party insurance pricing that stings, not the comprehensive. I am anyway a personality who always goes for the max coverage anyone will offer me, be it comprehensive insurance, zero-dep policies, extended warranties etc. so I will always recommend comprehensive till as long as you get it.

No one offers comprehensive insurance anymore for my old Jeep.
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Old 16th June 2021, 19:58   #3
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Re: Third Party vs Comprehensive Insurance for an older car

Quote:
Originally Posted by Piyush19 View Post
Our Esteem is in the penultimate year of registration in Delhi, and her registration will expire in June 2022. The insurance renewal of the car is due on 26 June every year, and for this year's renewal, I'm confused as to whether I should go for a comprehensive policy renewal or third party insurance to save upon some moolah (the lockdowns haven't helped).
What is the NCB on the insurance ? If no accidents, it should be having 50% NCB. In which case, you can get an NCB certificate from your insurer, which can be applied against your next car purchase, saving a lot in first year insurance. I guess getting the certificate automatically makes your car a 3rd party insured car, which is ok given the last year of it's life.

BTW, what happens next year on registration expiry ? Car is scrapped ? Sold to someone outside Delhi ?
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Old 16th June 2021, 21:09   #4
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Re: Third Party vs Comprehensive Insurance for an older car

What is the difference in premium? I don't think it would be a lot because the comprehensive insurance on my 10-year old Jazz was sub-5k.

A cursory search at Policy Bazaar for a 2007 Esteem showed a difference of less than 1k between third-party and comprehensive plans. Small price to pay for that little peace of mind.
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Old 16th June 2021, 22:04   #5
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Re: Third Party vs Comprehensive Insurance for an older car

Quote:
Originally Posted by GTO View Post
I would still say you should go for comprehensive insurance only. Reason being, it won't be that much more expensive. On such cheap old cars, it is the pricey 3rd-party insurance pricing that stings, not the comprehensive. I am anyway a personality who always goes for the max coverage anyone will offer me, be it comprehensive insurance, zero-dep policies, extended warranties etc. so I will always recommend comprehensive till as long as you get it.

No one offers comprehensive insurance anymore for my old Jeep.
If one has Industry contacts, one can still manage comprehensive insurance for something like your Classic.
I have third party insurance for my W124, however a friend who works in Automotive industry has comprehensive insurance for the same car.
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Old 16th June 2021, 23:35   #6
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Re: Third Party vs Comprehensive Insurance for an older car

Firstly you say you love it to the core and secondly you say that it will be deregistered in June 2022. I am told that the RTO there has stopped issuing NOC's to older cars during the last year of their "end of life." Hence presumably your car succumbs to the draconian laws.

Back to insurance, please opt for comprehensive, as with its 14 year age, the difference between third party and comprehensive is a paltry one/two thousand or maybe a little bit more with your no claim bonus, if applicable. The coverage for comprehensive insurance is much wider and can always be preferred.
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Old 23rd June 2021, 18:27   #7
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Re: Third Party vs Comprehensive Insurance for an older car

As owner of a 12 year old SX4 petrol, I still take a comprehensive insurance for the car. The difference of 2-3 thousands can easily be a lifesaver if the car is stolen or gets any major damage which can happen anytime, even in its last year. This peace of mind should never be forgone. I travel to places where both the risk of theft and the chance of trees falling over are high. Hence I resort to comprehensive insurance.

However, it is an altogether different story that I pay the same 12k for my 12 year old SX4 as our 3 year old Baleno, thanks to those 86 extra precious cc crossing the 1500 cc insurance barrier in the SX4.

Last edited by Researcher : 23rd June 2021 at 18:31.
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Old 23rd June 2021, 18:45   #8
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Re: Third Party vs Comprehensive Insurance for an older car

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Originally Posted by Researcher View Post
As owner of a 12 year old SX4 petrol, I still take a comprehensive insurance. The difference of 2-3 thousands can easily be a lifesaver.
I follow the third party route once the car is past the 7 year mark - just a gamble that I'm taking because

1. I know I have reasonably priced accident repair support closeby and,
2. hopefully the car won't be stolen

But I would still advise the majority to go with comprehensive insurance since the delta is very low.

Quote:
I pay the same 12k for my 12 year old SX4 as our 3 year old Baleno, thanks to those 86 extra precious cc crossing the 1500 cc insurance barrier in the SX4
Liability Only insurance is just INR 3,383 for cars exceeding 1000cc but not exceeding 1500cc, while it is a whopping INR7,890 for cars exceeding 1500cc. The latter used to be 3x of the former till 2 years ago. The gap is reducing, but still the premium is steep.

Last edited by vigsom : 23rd June 2021 at 18:46.
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Old 24th June 2021, 10:50   #9
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Re: Third Party vs Comprehensive Insurance for an older car

I would still suggest you to buy the comprehensive insurance for your esteem, the reason being even if just the windshield gets damaged in the next one year, the cost of windshield will be twice of your comprehensive insurance premium.

Although we all hope that no damage happens to our cars, one of the most common damages that does happen is windshield cracking. Having a third party insurance will not help in those situations.

All the best.
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Old 1st September 2021, 17:24   #10
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Re: Third Party vs Comprehensive Insurance for an older car

I am in the same situation with a Honda city ZX 2006 model. The RC was renewed this year till 2021 and the car has been with me since the beginning and is in excellent condtion. I plan to hold on to it till it doesn't give any reliability or legal problems. The insurance is due and last year I had an Acko comprehenive insurance poloicy bought at Rs 7500. This is the money I have been paying for insurance for the past few years

Strangely, this year the prices are showing Rs 9500 for a comprehensive policy and Rs 3500 for a third party. I got the windshield changed through insurance lasy year as a branch fell on a stationery car.
Is that the reason ?
Or the increase is due to the car crossing 15 year mark?
At such a difference, it makes sense to opt in for third party which I don't want to do . Any solutions?
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Old 1st September 2021, 17:33   #11
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Re: Third Party vs Comprehensive Insurance for an older car

Quote:
Originally Posted by WanderinNomad View Post
Strangely, this year the prices are showing Rs 9500 for a comprehensive policy and Rs 3500 for a third party. I got the windshield changed through insurance lasy year as a branch fell on a stationery car.
Is that the reason ?
Or the increase is due to the car crossing 15 year mark?
The increase must due to the claim made by you. Don't you have access to break-up of Rs 9500?

Quote:
At such a difference, it makes sense to opt in for third party which I don't want to do . Any solutions?
Rs 3500 is a mandatory third party insurance. You are paying Rs 6000 for own damage which I think is worth having especially knowing that insurance helped with your windshield replacement. You can shop around for cheaper offers but better to buy a comprehensive policy. Insurance is such an expense that looks unnecessary till you need it.
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Old 2nd September 2021, 16:33   #12
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Re: Third Party vs Comprehensive Insurance for an older car

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Originally Posted by androdev View Post
The increase must due to the claim made by you. Don't you have access to break-up of Rs 9500?



Rs 3500 is a mandatory third party insurance. You are paying Rs 6000 for own damage which I think is worth having especially knowing that insurance helped with your windshield replacement. You can shop around for cheaper offers but better to buy a comprehensive policy. Insurance is such an expense that looks unnecessary till you need it.
I agree, I always buy a comprehensive insurance, and it has served me well till now. Previously, my father used to shy away from taking claims and get cars repaired from denters/painters outside at his own cost and at a cheap rate. I followed the same for some years but slowly understood that the cheaper work outside had major drawbacks. Often these garages to save cost skimped in some areas which were not visible initially but much later, these issues re-surfaced and caused unnecessary issues ( for example: water leakage during monsoon due to an improperly fitted wind screen ). I was never in the same city to go back to the same garage.

I had a major accident in 2019 when I claimed insurance for the first time. It was a pleasant surprise since all necessary parts were changed without skimping costs. The car came back perfect and I paid a fraction of the cost.

From that time, I never worried about NCB and used the insurance for what it was meant for.

What surprises me this year is that I have been taking insurance for the same car every year for Rs 6000- Rs 6500 and from various companies. It is only this year that the car has got re-registered and I am seeing a rise of Rs 3000 for the comprehensive insurance. I had either no NCB or just an NCB for an year since I used to claim whenever required.

I was OK with Rs 6000 but paying Rs 9500 for a car that is worth around 1.5 Lacs doesn't seem right.

Last edited by WanderinNomad : 2nd September 2021 at 16:36.
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Old 2nd September 2021, 16:50   #13
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Re: Third Party vs Comprehensive Insurance for an older car

Quote:
Originally Posted by WanderinNomad View Post
I was OK with Rs 6000 but paying Rs 9500 for a car that is worth around 1.5 Lacs doesn't seem right.
Are you buying this online? You can always contact them to give you a break up. I am curious to know how they calculate premiums for older cars. Not sure how long you plan to keep the car but once you discontinue the policy, it is hard to get a policy in subsequent years on such old cars.
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Old 2nd September 2021, 17:09   #14
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Re: Third Party vs Comprehensive Insurance for an older car

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Originally Posted by androdev View Post
Are you buying this online? You can always contact them to give you a break up. I am curious to know how they calculate premiums for older cars. Not sure how long you plan to keep the car but once you discontinue the policy, it is hard to get a policy in subsequent years on such old cars.
Yes, have always bought insurance online.
People often ask me when I will change her and, I have quite a simple answer, once she starts troubling me in any way (reliability wise, financially,legally)
However I am learning of these unknown troubles are coming out of nowhere.

It's funny the car itself is great but it feels like the entire society is conspiring against old cars ( Registration issues, friends and family, NGT, and now even insurance companies )
Let me contact them for breakup and see where is the rise.
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