Can a 10-year-old car still be insured for vehicle damage insurance?
1 Answers
Vehicles that are 10 years or older can still purchase vehicle damage insurance, but the insured amount for cars over 10 years old is relatively low due to significant depreciation. Some insurance companies may refuse to provide vehicle damage insurance for older cars to control their own risks and protect their interests. Vehicle damage insurance, abbreviated as "vehicle loss insurance," is the most widely used type of auto insurance. It covers repair costs for both minor scratches and severe damages. However, there are exclusions, such as continued use after a collision that exacerbates the damage, which may lead to claim denial by the insurer. Claims for vehicle damage insurance are closely related to the vehicle's condition. The older the vehicle, the higher the likelihood and severity of damage in an accident. To mitigate risks, insurers depreciate vehicles based on age, resulting in limited coverage for 10-year-old cars and potential refusal to insure. Although vehicles over 10 years old face significant depreciation and low or unavailable coverage for vehicle damage insurance, owners can choose other suitable insurance types to mitigate risks and reduce potential losses in case of accidents. Compulsory traffic insurance, for example, is mandatory by law regardless of the car's age. Driving without it is illegal, and other commercial insurances won't cover accidents in such cases. For commercial insurance, owners can opt for third-party liability insurance, which covers injuries to non-passengers in accidents. 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.
