I was wondering whether its possible to get an insurance policy for old vehicles. The fact remains that at some point, vehicles become unroadworthy and the owner has to scramble to replace them. I think it would be a cheaper method since the insurance companies can enter into deals with car companies in order to reduce compensation costs.
I do not know what options you have available in your country, but in South Africa we have insurance that specifically caters to older vehicles. The insured amount may not exceed R 15 000 / $ 1000 and the vehicle must be older than 20 years. My vehicle is currently at 16 years and R32 000, so I pay R400 / $ 33 a month for car and household insurance combined. The house content is insured up to R 80 000 / $ 5 700
I'm not sure if you are talking about a vehicle replacement policy, but that's what it sounds like to me. I am not aware of any such policy, but it does sound as if it would make sense. I have an older vehicle, although it's not yet 20 years old. I don't have money to replace it, but if I could purchase such a policy for a few dollars per month, it would be well worth it for me to do so, and I'd be interested in learning about the availability of that type of product.
I have heard of a lot of specialty insurance places out there, so chances are there is something out there that would do the trick. I really have no idea or no personal experience here, but I would just say do your research.
In our country, it is mandatory to insure your vehicle in order to pay your vehicle tax. If you have not insured your vehicle, you cannot pay the tax. As long as your vehicle is running,you have to pay tax, and without paying for insurance, you cannot pay tax. This all kinds of vehicles can be insured, no matter that age.
In my country, you are able to insure older vehicles, but it will a "Third Party" arrangement. Under this arrangement, If you meet in an accident and you are at fault, your insurance company would cover the cost of damage to the other vehicle, its driver, and passengers. Your insurance company would also cover damages to passengers in your car but they would not compensate for damages to you or your vehicle.
Our previous car was a Honda Civic that had an insurance until the time it was 20 years old when we had it replaced by a brand new SUV. And although people told us that we are at a disadvantage when insuring an old vehicle, we still did just to have peace of mind. But now I agree that insuring old cars have a disadvantage in the cost. That Honda had a market value of 80k pesos (we were able to sell it at 85k) and the insurance premium was around 10k which means that after 8 years, we had paid a total amount of premium equivalent to the cost of our old car. But as I said, that insurance gave us a peace of mind because carnapping is a common crime here.
You can change the degree of coverage as your car gets older, and financially it makes sense to. With our old cars it did get to the point where we reduced the insurance on them to third-party because the car was so old that the insurance company would write it off in the event of an accident. It just wasn't worth the extra cost for full coverage.
