Owning an old scooter can be both a practical choice and a sentimental one. Whether your scooter is a reliable mode of transport or holds nostalgic value, insuring it is crucial. As your scooter ages, the cost of insuring it generally decreases, making it more affordable to maintain financial protection. Here’s a unique and comprehensive guide on how to insure your old scooter, even if your current policy has expired.
Why Insuring an Old Scooter is Important
Even if your scooter is past its prime, it still requires insurance for both legal and financial reasons. Here’s why:
- Protection Against Damages: Comprehensive insurance protects your scooter against damages caused by accidents, fire, theft, and natural or man-made calamities.
- Legal Compliance: Insuring your scooter with at least a Third-Party Liability Insurance is mandatory as per The Motor Vehicles Act, 1988. Riding without valid insurance can lead to legal penalties.
- Third-Party Liability Coverage: A Third-Party Liability Insurance covers the cost of damages or injuries caused to another person or their property by your scooter.
- Personal Accident Coverage: This mandatory cover ensures financial protection for the rider in case of injuries or death due to an accident.
Factors Affecting Insurance for an Old Scooter
The cost of insurance for your old scooter depends on several factors, which may differ from those for a new vehicle. Here’s what you need to consider:
- Insured Declared Value (IDV): The IDV is the current market value of your scooter. As your scooter gets older, its value depreciates, which in turn lowers the IDV and the insurance premium. The depreciation process accounts for regular wear and tear over time.
- Engine Capacity: The engine size of your scooter plays a role in determining the premium. Larger engines generally attract higher premiums.
- Age of the Scooter: The older your scooter, the lower its market value and the lower the insurance premium. Insurers calculate premiums based on the year of manufacture and the condition of the scooter.
- Location: The place where you use your scooter also affects the premium. For instance, areas with higher traffic density or accident rates may lead to higher insurance costs.
- Accumulated No Claim Bonus (NCB): If you haven’t made any claims in the previous policy period, you may be eligible for a No Claim Bonus, which can significantly reduce your premium.
- Insurance Provider: Different insurers may offer varying premiums based on their calculations. Insurers like ACKO, which operate online with lower operating costs, often provide more affordable options.
Why Does Insurance Cost Decrease as Your Scooter Gets Older?
As your scooter ages, its market value declines due to depreciation, which means the potential payout from the insurer decreases. Since the insurer’s risk reduces as the value of the scooter goes down, the insurance premium also decreases. Additionally, if you have accumulated a No Claim Bonus, your premium may be further reduced.
Steps to Insure an Old Scooter
If your scooter’s insurance has expired, don’t worry—you can still insure it. Here’s how:
- Choose the Right Coverage: Decide whether you want Comprehensive Insurance, which covers both third-party liabilities and own-damage, or just the mandatory Third-Party Insurance.
- Get the Insured Declared Value (IDV): Determine the current market value of your scooter, which will be the IDV. This value is crucial in calculating your premium.
- Compare Policies Online: Use online insurance platforms to compare different policies. InsureMile offers an easy, hassle-free process to renew or purchase insurance for older vehicles.
- Submit the Required Documents: Provide necessary documents such as the RC (Registration Certificate), previous insurance policy details, and your personal information. For scooters over 15 years old, additional inspections may be required.
- Review the Terms and Conditions: Carefully review the policy terms, including inclusions, exclusions, deductibles, and premium amounts, before finalizing your purchase.
- Make the Payment and Receive the Policy: Once you’ve selected the right policy, make the payment online. Your policy documents will be sent to you digitally, ensuring a quick and seamless process.
Benefits of Insuring an Old Scooter
Insuring your old scooter has several advantages:
- Affordable Premiums: As the scooter gets older, the premium becomes more affordable due to depreciation.
- Peace of Mind: Even if your scooter is old, you still get financial protection against unforeseen events like accidents or theft.
- Legal Safety: Avoid fines and legal hassles by ensuring your scooter is always covered with at least Third-Party Insurance.
Things to Consider When Insuring Your Old Scooter
When insuring an old scooter, keep the following in mind:
- Evaluate the Insurance Provider: Choose a provider known for excellent service and hassle-free claims.
- Understand Policy Terms: Be aware of what is covered and what isn’t, including any deductibles or exclusions.
- Consider Add-Ons: If needed, you can include additional coverage like zero depreciation, even for an older scooter, depending on the insurer’s offerings.
- Renew Before Expiry: To avoid a lapse in coverage, renew your policy before it expires. If it has already expired, renew it as soon as possible to avoid legal penalties.
Frequently Asked Questions
Can I Insure a 15-Year-Old Scooter?
Yes, you can. It is mandatory to have at least Third-Party Insurance. Comprehensive coverage is also available, offering financial protection against damages or losses to your scooter.
What If My Scooter’s Insurance Has Expired?
You can still renew your insurance after it has expired. However, it is advisable to do so as quickly as possible to avoid legal penalties and ensure continuous coverage.
Conclusion
Even though your scooter might be old, ensuring it is properly insured is crucial for your peace of mind and financial security. The process is straightforward, and with the right information and approach, you can find affordable insurance that meets your needs. Whether your scooter holds sentimental value or is just a reliable mode of transportation, protecting it with the right insurance coverage is always a wise decision.
