As cars age, their maintenance needs increase — and so does the importance of choosing the right car insurance policy. Many vehicle owners in Pakistan assume that insurance for older cars is either unnecessary or too expensive. In reality, older car insurance can be affordable, practical, and highly beneficial when chosen wisely.
At United Insurance, we help car owners find cost-effective and reliable insurance solutions tailored to the age, value, and model of their vehicle. This guide explains everything you need to know about the best car insurance for older cars, premium rates, coverage options, and smart tips to save money.
What Is Considered an Older Car in Insurance?
In Pakistan, an older car typically refers to a vehicle that is:
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More than 15 years old
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Has a lower market value compared to newer models
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May have higher repair frequency
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Often not eligible for full coverage from all insurers
However, reputable insurers like United Insurance still offer flexible coverage options for older vehicles based on car value, model, and condition.
Why Do Older Cars Need Insurance?
Even if your car is not brand new, insurance remains essential for several reasons:
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Protection against accidents and collisions
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Coverage for theft and total loss
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Financial safety from third-party liabilities
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Peace of mind in unexpected situations
Without insurance, repair or replacement costs can be a major financial burden — especially when spare parts are expensive or hard to find.
Best Types of Car Insurance for Older Cars
1. Third-Party Car Insurance (Most Affordable Option)
Third-party insurance is the minimum legal requirement in Pakistan and is ideal for very old cars.
Covers:
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Damage to other vehicles
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Injury or death of third parties
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Legal liabilities
Best for:
Cars with very low market value or limited usage
2. Comprehensive Car Insurance (Recommended for Most Older Cars)
Comprehensive insurance provides broader protection, even for older vehicles, depending on their condition.
Covers:
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Accidental damage
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Theft
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Fire
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Natural disasters
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Third-party liabilities
At United Insurance, comprehensive coverage for older cars is customized according to the car’s current market value and model.
Car Insurance Premium Rates in Pakistan (Latest)
Premium rates depend on the vehicle’s age, value, model, and risk profile.
Latest Car Premium (Newer Models)
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1.5% of the car’s insured value
Older Car Premium
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2% to 3.0% of the car’s insured value
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Final rate depends on:
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Car model
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Manufacturing year
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Engine capacity
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Market value
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Claim history
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👉 Example:
If an older car’s market value is PKR 1,000,000, the insurance premium may range between PKR 20,000 to PKR 30,000 annually.
Factors That Affect Insurance Premium for Older Cars
Insurance for older cars is not fixed — it varies based on several factors:
1. Car Value
Lower car value usually means lower premium, even at a higher percentage.
2. Car Model & Brand
Popular models with easily available spare parts often get better rates.
3. Manufacturing Year
The older the car, the higher the risk — which slightly increases premium.
4. Engine Capacity
Cars with higher engine capacity may attract higher premiums.
5. Claim History
A claim-free history can help reduce premium costs.
How United Insurance Offers the Best Coverage for Older Cars
At United Insurance, we understand that older cars still deserve reliable protection. Our advantages include:
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✔ Customized insurance plans for older vehicles
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✔ Competitive premium rates (2%–3.0%)
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✔ Fast claim processing
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✔ Trusted nationwide network
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✔ Flexible coverage based on car value & model
We focus on value-based insurance, ensuring you don’t overpay for unnecessary coverage.
Tips to Reduce Car Insurance Cost for Older Cars
Want to save money on your car insurance? Follow these tips:
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Choose the right insured value (market value)
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Avoid unnecessary add-ons
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Maintain a clean claim history
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Install safety features (alarm, immobilizer)
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Compare coverage options before renewal
United Insurance advisors can help you optimize coverage without compromising protection.
Final Thoughts
Choosing the best car insurance for older cars doesn’t have to be complicated or expensive. With the right insurer, you can enjoy reliable coverage, fair premium rates, and peace of mind, regardless of your car’s age.
At United Insurance, we provide smart, flexible, and affordable car insurance solutions designed specifically for both newer and older vehicles. Whether your car is brand new or over a decade old, we ensure protection that matches its true value.
Get insured smartly. Choose United Insurance.
