Why I Stopped Recommending Standard ‘Comprehensive’ Policies For Cars Older Than 5 Years?

For years, I had one standard answer when people asked me which car insurance to buy. I would say, “Go for comprehensive car insurance. It’s safer.” And honestly, I believed it. It felt like the smart, responsible choice.

But things started to change when I looked at real customer cases. People with cars six, seven, even eight years old were paying high premiums. And when they finally made a claim, the payout didn’t always match what they had spent over the years.

That’s when I paused. And I started asking a different question. Is comprehensive insurance still the right fit once a car crosses five years?
 

Cars Lose Value Fast

A car that is just a couple of years old still holds a fair chunk of its original value. But once you cross the five-year mark, the way the market values that car changes quickly. The Insured Declared Value or IDV, which is the amount an insurer will pay out if your car is a total loss, drops with age. That’s simple maths: lower car value usually means you get less back even if something big happens.

This shrinking value changes the whole math of insurance. A comprehensive policy might cost more than a third-party alternative, but the amount you might ever claim on a very old car could be just a fraction of what you’re paying. When we noticed this pattern across thousands of renewals and claims, it forced a rethink.
 

What Comprehensive Policies Actually Give You

When you buy a comprehensive plan, you’re combining two kinds of protection in one.

First, you get third-party liability cover, which is the legal minimum in India. Every car on the road has to have it. Second, you get protection for damage to your own vehicle from accidents, theft, fire, storms and even vandalism. That’s a wide safety net and for newer cars it can make total sense.

But here’s the thing:

The way insurers price these covers doesn’t change just because your car is old. The premium stays tied to that broad cover, even when the value of what you are insuring is falling. You are, in effect, paying for protection you’re unlikely to use in full if your car is worth less.
 

Repair Costs vs. Car Value

Another factor we watched closely was the difference between repair bills and car value. Older cars often have simpler parts and sometimes they cost less to fix than what a big insurer payout would be. But in other cases, especially with models that are no longer made, spare parts become rare and expensive. That gnaws at your pocket either way.

This is where we began to warn friends and clients: don’t assume that comprehensive cover automatically saves you money on repair bills. Some policies also exclude certain kinds of damage unless you buy extra add-ons. That drives the premium up further without clear extra benefit.
 

Third-Party Car Insurance is not Just Legal Cover

There’s a common idea that third-party car insurance is “bare minimum” and nothing more. But third-party policies have evolved. Most still meet legal requirements, but they also protect you from paying out cash if you accidentally hurt someone or damage their property. In many cases, for cars past five years old and used mainly for short drives or local commutes, that is all most owners need.

If your car has low market value and you don’t rely on it for heavy use, a well-priced third-party plan paired with a standalone own-damage cover (if needed) tends to be a smarter way to balance cost and risk.
 

Where Comprehensive Car Insurance Still Makes Sense

Now, to be clear, we haven’t declared comprehensive insurance “bad.” There are situations where it’s worth every rupee.

For example, if you live in a flood-prone city or park on busy streets with high vandalism rates, having full cover still gives you peace of mind. And if your old car is something irreplaceable to you, or you worry about theft and natural calamities, comprehensive plans can close a lot of gaps that a basic policy won’t.

There’s also the personal accident cover that comes with most comprehensive plans. If you want that protection, it’s one way to get it without buying a separate policy.
 

A Practical Way to Think About It

Let us break it down:

Look at your car’s market value. Check how much you would realistically get for it if it were damaged beyond repair tomorrow. Then think about how often you use it and where you use it.

If your car is older than five years and you drive it mainly around town on weekends or short trips, the cost of a big comprehensive policy often outweighs the benefits. That doesn’t mean you cut the coverage entirely. It means you pick the protections that matter for your actual use. Many insurers even let you combine third-party insurance with optional own-damage covers that are cheaper than a full comprehensive plan.
 

Why We Stopped Recommending One Size Fits All?

Insurance should be about minimizing real financial risks, not about ticking all possible boxes and paying for every one of them. The phrase “comprehensive is best” might work for a brand new car, or a car still under finance, or one that you rely on for long highway trips. But it stopped making sense when applied without thought to every older car.

What we see in data and real claims is this: after a certain age, especially past five years, a tailored approach that reduces unnecessary cover can save money and not leave you exposed to real liabilities. That’s why my recommendation now is practical. It’s based on real risk and real cost, not on a rule that says “comprehensive is always the right choice.”
 

A Better Way Forward

If you have an older car and you’re unsure what cover to choose, start with these simple checks:

• Know your car’s current market value and expected repair costs.
• Think about how and where you drive. City use is different from highway use.
• Compare third-party premiums with standalone own-damage cover costs.
• Ask if add-ons, like zero depreciation or engine protection, truly add value for your vehicle age and use.

That process gives you a clear picture of what you’re paying for and what you actually need. It avoids the trap of buying a big, expensive policy that ends up sitting on paper while you pay premiums year after year with little return.
 

Summing Up,

Insurance isn’t one-size-fits-all. Over time we stopped telling every owner of an older car that they must have comprehensive cover. We saw too many cases where it didn’t make financial sense and where simpler, cheaper arrangements protected people just as well for everyday risks.

If your car is older than five years, you deserve a recommendation that’s tailored to your needs, not a blanket policy suggestion that works best for someone else. In the end, insurance should give you confidence on the road and peace of mind in your wallet. Choosing the right kind of cover does just that.

FAQs