Difference between Calculating Old Car Insurance vs New Car Insurance Premiums

Owning a car is an accomplishment for many people. However, due to various reasons, not everyone can purchase a new car when they want to. Many of us opt for a second-hand car or choose to continue with our trusty old vehicle. Nevertheless, a car insurance policy is necessary for protecting your four-wheeler. So, if you’re wondering whether there is any difference between the car insurance premiums of both, the answer is yes.

How to Use an Online Four-wheeler Insurance Premium Calculator?

With a car insurance premium calculator, you can calculate the premiums for old cars as well as new cars. As per your requirement, you will be required to enter separate but essential car insurance details to calculate the premium for your car insurance.

These are the following steps to get the insurance premium through the car insurance premium calculator:

  1. Select your car’s model, variant, brand, and fuel type
  2. Choose your car’s correct registered location
  3. Pick the year in which you bought your car
  4. Choose ‘Yes’ or ‘No’ to confirm if you made any claim in the previous year.
  5. Next, enter your name and mobile number, and verify the details with an OTP on your mobile number.
  6. Once the verification is complete, you will be able to view the premium quotes for your car insurance.

Difference between the premium calculation of old and new car insurance

Insurance for New Car Insurance for Old Car
New cars have a high market value, and so, their IDV & premiums are higher. With a lower market value & depreciated IDV after 5 years, old cars will have lower premiums.
It is better to have a comprehensive four-wheeler policy for a new car that provides third-party as well as own damage cover. The coverage for an old car can be flexible. If you intend to buy a new car soon, you can keep only a third-party cover. But even a comprehensive policy would cost less due to a lower IDV.
You cannot avail of the No Claim Bonus (NCB) in the first year of buying a new car insurance policy since the NCB comes into effect only in the second year. You can utilise the accumulated NCB discount, if any while renewing the policy to lower the premium.
The name of the car manufacturer, the year of manufacture and the model and variant of the vehicle need to be mentioned while calculating the premiums. The fuel type, previous NCB details, existing policy details and the make, model and variant of the vehicle have to be mentioned while calculating the premium.

Buying a Four-wheeler Insurance Policy

Purchasing four-wheeler insurance online for a new car is a simple task if you know the right way to go about it. Moreover, the use of a car insurance premium calculator makes it easy for you to get appropriate premium quotes from different insurance providers. Here are a few simple steps that you can follow to buy a four-wheeler insurance policy online:

  • Understand your requirement:

Different people have different requirements when it comes to purchasing a car insurance policy. The brand, make, and model of the four-wheeler you own will determine the kind of coverage you should get. Also, depending upon what risks you want to cover and the amount and type of coverage you need, there are several policies available.

For instance, a person in a busy metropolitan city may want a higher coverage because the car is at a greater risk of being damaged due to mishaps or accidents in heavy traffic. Likewise, a person in a small town may not need very high insurance coverage because the car is comparatively safer from accidents in a quiet township.

  • Comparing the Policies

It is advisable to always compare two or more policies before you buy one for your four-wheeler. However, it helps if you have a useful tool such as a car insurance premium calculator to get the right four-wheeler insurance price.

That way, not only will you know what the insurance companies have to offer, but you can also choose a policy that fits your budget and needs properly.

  • Choice of add-ons

Add-ons are meant to enhance the coverage of your insurance policy, such that you need not spend from your own pocket to cover certain damages. Even the most comprehensive insurance plan does not provide specific cover like engine protection, key replacement, etc.

Including a couple of useful add-ons to your policy ensures that you keep your premiums within the affordable limit but also cover your car from damage that your base policy cannot deal with.

  • Buying the policy

Before you pay for your car insurance online, make it a point to read the offer documents and the fine print on the policy documents carefully. These sections consist of the exclusions or the situations your policy does not protect your car against.

If the terms and conditions are to your satisfaction, then the last step to getting your car insurance policy is to make the payment online.


It doesn’t matter if your car is old or new; you can always protect it with a suitable insurance cover. While most people may feel that buying insurance for an old car is a waste of money, you can opt for a basic third-party cover till you buy a new car in the future.

Comments are closed.