Types of Car Insurance Policies for Seniors
Seniors or senior citizens can purchase three types of car insurance policies in India. These include:
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Third-Party Car Insurance
A third-party car insurance policy is designed to compensate for third-party liabilities caused by the insured car. These liabilities include third-party death, disability, or property damage. It is a mandatory cover that every car owner must own to legally drive in India.
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Own Damage Car Insurance
Own-damage or standalone car insurance can be purchased to enhance the coverage of a TP policy. If you already have a third-party cover and wish to extend its coverage to the car's own damage, you can go with a standalone own damage car insurance policy.
Own damage car insurance policy covers the insured car against damages like road accidents, fire, theft, natural calamities, manmade acts, etc.
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Comprehensive Car Insurance
Offering wider coverage, a comprehensive car insurance policy covers cars against damages arising out of unforeseen emergencies like collision, theft, fire, earthquakes, riots, etc. This policy is not mandatory, but it is recommended for brand-new cars.
Does Car Insurance Increase with the Age of the Driver?
When you reach 60, your car insurance premium may begin to rise. The reason behind this is the higher likelihood of meeting with a road accident. Older people are more significant to injury or death in a car accident, which increases the liability of the insurance company, so the premium is also increased.
Moreover, senior citizens are more prone to suffering from diseases and joint-related conditions, which can again add to the risk of accidents.
Can Seniors Get Discounts on Car Insurance?
Yes, senior citizens can reduce their car insurance premiums in many ways. Here are some tips that you, as a senior citizen driver, can opt to get a lower premium on your car insurance policy:
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Compare Plans:
Before investing in car insurance for senior citizens, you must compare plans from multiple insurers. While this process is cumbersome offline, it can be accessible online or from Policybazaar.com.
Here, you can compare senior citizen car insurance quotes from car insurance companies and then choose the one that suits your budget.
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Opt for Voluntary Deductibles
If you can afford to pay some amount of your claim at the time of policy purchase in exchange for a discount, you can opt for voluntary deductibles. When you opt for this type of deductible, you can get a discount on your car insurance premium at the time of policy purchase. As a voluntary deductible reduces the insurer’s liability at the time of claim, they offer a discount on car policy premium.
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NCB Benefit
The benefit of NCB can also be used to get a discount on car insurance renewal premiums. A No Claim Bonus reward can get you up to a 50% discount if accumulated. However, it can only be done if you drive safely and don't raise a claim during the policy year.
The insurers give this reward for maintaining good driving behaviour.
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Anti-Theft Device
One of the best ways to protect your car from theft and get a discount on premium is to install an anti-theft device. By installing an anti-theft device in your car that's approved by ARAI, you can get up to a 2.5% discount on the car's damage premium.
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Choose Add-Ons Wisely
When choosing car insurance for seniors, it is not necessary to invest in all the additional covers that your insurer offers. These additional covers come at an extra cost, which adds to your car insurance premium.
Thus, to get car insurance at an affordable premium, invest in add-ons that you actually need for your car.
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Become a Member of AAI
Members of the Automobile Association of India get a specific discount on the premium of their car insurance policy. So, if you are a member of AAI, you can ask for a discount on your premium at the time of policy purchase.
However, if you aren't one, you can join its membership irrespective of your age or gender.
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Pay As You Drive Insurance
If you are an occasional driver or have more than one car that you drive, alternatively, you can go with Pay as you drive car insurance and save up on your premium. Under PAYD insurance, a car owner is charged a premium based on the number of kilometres driven in a year.
At the beginning of your policy, you choose a kilometre limit, and the insurer will offer you a discount on OD based on the usage. So, if you drive less, you can pay less with PAYD insurance.
Add-ons for Senior Citizens
The coverage of a senior citizen car insurance policy can also be enhanced by purchasing additional covers at some extra premium. These add-ons are:
- Zero Depreciation Cover
- Tyre Protect Cover
- Roadside Assistance Cover
- Engine Protect Cover
- NCB Protect Cover
- Key and Lock Protect
How to Buy Car Insurance for Seniors?
Senior citizens can easily buy car insurance online without having to step out of their homes. Follow these steps to buy car insurance for seniors from Policybazaar.com:
- From the homepage, select the "Car Insurance" tab
- On the given form, enter your car number or select the "brand new car" option
- Now proceed with choosing the details of your car, such as make, model, variant, etc.
- Fill in the registration details
- Proceed with four-wheeler insurance quotes for seniors
- Compare and select the plan that suits your budget
- Along with it, choose any add-on that you want to include in your plan
- Pay the final premium via the chosen online payment mode
- Once you have made the payment, your car insurance policy will be issued.
FAQs
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Ans: Yes, as stated above, you can go for Pay as you drive car insurance. This plan is designed for occasional drivers as it lets you choose a specified number of kilometres and offers a discount based on the kms driven in a year.
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Ans: The type of car insurance you choose depends on your budget and the coverage you want. If you have an old car, you can only use the mandatory third-party cover. However, if you have a new car or want broader coverage, you can go with comprehensive coverage.
Since seniors are more likely to be involved in an accident, they are suggested to purchase comprehensive car insurance and personal accident coverage.
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Ans: The documents needed to raise a car insurance claim are:
- Claim form duly filled and signed
- Copy of Police FIR
- Repair bills and estimates of repair
- Copy of vehicle driving licence
- Copy of car's registration certificate
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Ans: The factors that impact the cost of car insurance for seniors are the car's engine cc, make, model, variant, fuel type, RTO, type of coverage opted for, NCB, and add-ons.
