HOW TO BUY A SECOND HAND CAR INSURANCE

"Health, life or vehicle, for all the insurance is necessary thing."

Used car insurance

Owing a car is no longer a luxury; it is a necessity in today's time. While most people prefer to buy a new car, a large section of people also opt for a second-hand or used car. As per the recent survey, 4 million second-hand cars were sold in India in the year 2019-2020. The primary reason people go for second-hand or used cars is that they are available at a cheaper price and can also be used for practice driving before buying an expensive new model.

Car insurance is just like a layer of financial security to be protected in case of unfortunate events involving your car, whether new or used. Events like accidents, property damage, injuries, or even death that can lead to legal actions against the cardholders.

Car insurance aids to make sure that along with providing a financial cover, it also enables legal support. Car insurance depends on the coverage offered by the policy, which includes Third-party Liabilities and a Comprehensive Car Insurance Policy.

 

Importance of insuring your used car

According to The Motor Vehicles Act, it is mandatory to buy at least a Third-party Liability Policy for car insurance. However, it provides lesser coverage in comparison to a Comprehensive car insurance policy. Buying insurance for used cars is critical due to the limited availability of spare parts and the high risk of breakdown. Also, the chances of a component failure are relatively higher in older cars, which can lead to an accident. Hence second-hand car insurance is vital. The insurance will be able to cover damages to your old car in case of any mishap.

No insurance for a used car can make you exposed to the following risks;

Third-party risks - If any kind of damage is caused to the third party, you need to bear the cost of repairing damage and paying for injuries. With an appropriate car insurance, all the third-party risks are covered by the insurance provider.

Theft - Old car insurance is the solution to protect yourself from car theft. Setting the accurate Insured Declared Value (IDV) while buying insurance enables you to receive the right amount from your insurer in case of theft.

Natural Calamities - Calamities like floods, earthquakes, landslides, rockslides can take place unpredicted at any time or place. They can damage your car beyond repair. A comprehensive car insurance plan can provide coverage for natural calamities that put the car in an unusable state.

 

Facts on insuring a used car

Always keep a few things in mind while purchasing used car insurance. Firstly, ensure the ownership of the car gets transferred to your name. Generally, it is not possible to alter the type of features of a car insurance policy before its expiry. In case you own a second-hand car, have a claim history verified with the insurance provider. You can do it by simply calling the insurer and stating the policy number and quickly getting all the earlier details of the earlier car owner and insurance.

Also, make sure you compare insurance plans to get the ideal plan for your need. Determine essential facts such as the value of your used car, depreciation rate, add-on cover, and additional discounts available, if any.

Remember to keep a check for car model, current value, and distance driven on your used car to get the best-suited insurance plan for your used car.

 

Guide to buying used car insurance policy

Used car insurance can be purchased online or offline- by submitting all the relevant documents personally at the insurer's office. Let's look at the easy steps to buy a used car insurance policy online;

• Go to the Top of the page & find a form
• Enter car details such as make, model, registration date, registration number, and city you drive
• Choose the insurance plan, whether Third-Party or Comprehensive Insurance plan
• Enter details of the prior insurance policy
• You will get the insurance plan details
• Complete the payment process via digital payment modes available
• Once the payment and entire process is complete, the Certificate of Insurance will be issued to you

 

Transfer the car ownership and insurance

In case of transferring the car, ownership, and insurance, there are certain documents you need to submit. Let's take a look at them;

 

• Original Registration Certificate bearing buyer's name
• Certificate of insurance
• A copy of the car policy
• Forms 29 and 30 as per the mandate
• Fees like transfer and of registration certificate
• Latest proposal form
• Latest registration certificate
• Earlier policy deed
• A NOC from the previous holder
• NCB difference amount, if any applicable

As all of this paperwork gets completed and fees are paid, the new certificate gets issued in the new owner's name. Also, it is crucial to note that all the documents, including insurance, should have the same owner’s name.

To sum it up, it is necessary to get insurance for a used car as well to be protected from various posed risks. Also, to comply with the Indian laws, one should always ensure a car, whether new or used.

 

"Those who love to their life and health, they get secure them by insurance."

 

FAQs – Frequently asked questions.

Let's look at some frequent queries on How to Buy Insurance Policies for Used Car;

 

Q1. Is a Comprehensive insurance policy better for a used car?

Yes, a Third-Party car insurance policy is a necessity for a new or used car. Usually, you can consider buying the Comprehensive insurance policy for your used car as it provides all-round coverage.

 

Q2. Is premium higher to insure used car?

Not necessary, if the car is more than five years old, then the insurance premium depends on various factors such as the condition and value of the car, geographical location, the insurance plan, and add-ons you choose. Depending on IDV and all these factors, the premium is calculated.

 

Q3. Can I lower the cost of used car insurance?

Yes, if you have purchased a second-hand car, make sure that you transfer the NCB discount benefits if any. You can avail of the NCB discount while purchasing a new policy or renewing the existing policy. Apart from that, you can also opt for an anti-theft security device on your used car to reduce the cost of insurance. With the reduced risk of theft, the insurance provider can give some discount while purchasing or renewing the car insurance policy.

 

Q4. Can I not transfer the insurance policy of my second-hand or used car?

No, if you have purchased a used car and did not transfer the insurance policy, then you cannot make any claims in case of any mishaps, so it is vital to transfer the insurance policy of your used car. The insurer can reject your claim if you have not transferred the insurance policy. Also, you will face legal issues if you fail to transfer the insurance policy of your used car.

 

Q5. Can the third-party insurance cover automatically get transferred to the new owner's name?

No, as per the rules and regulations, you have to transfer the insurance policy within 14 days of the second-hand car purchase. So, just for 14 days, the third-party liability cover will get automatically transferred. Post the 14 days; if the policy is not transferred by you, the insurance company will not bear any losses incurred by you due to third-party or own damage.