Can a 10-year-old car no longer be insured for vehicle damage insurance?
2 Answers
Vehicles that are 10 years or older can still purchase vehicle damage insurance, but the insurable amount for cars over 10 years old is relatively low due to significant depreciation. Therefore, some insurance companies may refuse to provide vehicle damage insurance for cars beyond a certain age to manage their own risk and interests. Vehicle damage insurance, short for 'vehicle loss insurance,' is the most widely used type of auto insurance. It covers repair costs for both minor scratches and severe damage. However, there are exclusions, such as continued use after a collision that worsens the damage, which may lead to claim denial by the insurer. The claim settlement for vehicle damage insurance is closely related to the vehicle's condition. Older vehicles are more likely to sustain severe damage in accidents, so insurers depreciate the vehicle based on age to control risk. A 10-year-old car will have high depreciation, resulting in a very limited insurable amount or even rejection of coverage. Although vehicles over 10 years old depreciate significantly, and the coverage for vehicle damage insurance may be low or unavailable, owners can still choose other suitable insurance types to mitigate risks and reduce potential losses in case of an accident. For example, compulsory traffic insurance (CTPL) is mandatory by law and unrelated to the vehicle's age. Driving without CTPL is illegal, and other commercial insurance won't help in an accident. For commercial insurance, owners can opt for third-party liability insurance, which covers compensation for injuries to non-passengers within the insured amount. Passenger liability insurance is also worth considering, as accidents can happen to anyone, regardless of driving experience. Having insurance provides an extra layer of protection.
I've been driving my old car for 15 years. Recently when my insurance was due for renewal and I wanted to continue with the collision coverage, several insurance companies told me that my car's value was too low and the risk was too high after 10 years, so they either outright refused to insure it or doubled the premium. Later, I consulted someone knowledgeable and learned that the vehicle's depreciation was so severe that in case of an accident, the repair costs might exceed the car's own value, making it a loss for the insurance companies. Now, I can only opt for third-party insurance to at least cover basic damages to others and myself. I suggest you check the policies of different companies early on, as some smaller insurers still accept older cars in good condition. Regular maintenance can also help a bit, but generally, getting full coverage for a 10-year-old car is tough, so you need to plan for the risks.