Things to Consider When you Buy Insurance for your Second-Hand Car

Few milestones in life need to be celebrated. Buying a car requires a financial leap of faith and a lot of planning. Whether it is a new car or a second-hand car, sentiments are the same and the investment is sizable. If it’s a second-hand car, there are a few things that need to be kept in mind while buying the car.

The health of the car is indicated by the history of insurance. There are a few questions that need to be asked while buying a car from another owner. You may want to know if the car has undergone any risks of natural calamities, accidents, or has any persisting issues.

These factors may lead to issues that materialize over time. It is also important to transfer car insurance to your name to ensure you are protecting yourself against any possible losses.

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Why is Insuring Your Second-Hand Car Necessary?

Insuring second-hand cars is just as important as insuring new ones. Both help you to avoid liabilities in case of accidents. Here’s why insuring your second-hand car is necessary:

• Owning insurance will help in avoiding a financial crunch when the car causes damage.
• Driving an uninsured car is an offence in India, for which you will be legally charged.
• It is mandatory to at least buy a third-party car insurance policy, vehicles cannot be driven on Indian roads without this.
• Enables you to receive a calculated amount from your insurer in case of theft.
• If your car is damaged beyond repair due to natural disasters, having insurance will come in handy.
• The insurance will cover all the third-party risks by your insurer.

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Things to Keep in Mind when you buy Second-Hand Car Insurance

1. Transfer the current Car Insurance Policy Or Buy A New One:

While buying a second-hand car, the old car insurance needs to be transferred to the new owner’s name. If the seller doesn’t do it proactively, it is the buyer’s responsibility to get it transferred.

There might be legal issues if the car insurance is not transferred in the new owner’s name within 14 days of buying the car when the vehicle is involved in an accident or other unfortunate events. If the policy is expired or you don’t want to transfer you can get a new car insurance policy for your second hand car.

2. Third party insurance is mandatory:

As per the Indian Road Safety Act and Indian Motor Vehicles Act, it is mandatory for all car owners to insure third party policy. This policy will cover the damages caused by you to the third-party vehicle. It is the most important requisite for second-hand cars, so if you have a used car and are looking to buy insurance, avail third-party insurance now!

3. Look for Comprehensive plan for better coverage:

Comprehensive insurance is an extensive motor vehicle insurance that covers third-party liabilities and own damage or ‘other than collision’. It covers your second-hand car financially against any losses that might arise not due to collision but also if any unforeseen incidents such as an accident, fire, theft or natural calamity. Although third-party cover is mandatory it might not offer you such a variety of benefits as comprehensive insurance.

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4. Buy Add-ons based on your usage:

 The comprehensive plan has a trail of add-ons, you can choose out of the lot, including Zero Depreciation, Return-to-Invoice, Pay Driver coverage, Road Assistance, Tyre Protection Cover, Consumable Covers and more. Comprehensive second-hand insurance offers more coverages, discounted add-ons, and more services for your used car. You can buy a set of add-ons that suits your convenience, offering better protection for your second-hand car.

5. Choose insurance online:

Did you know a lot of time & money can be saved when insurance is processed online? Yes,  just look for used car insurance available online it saves time and money, keeping you away from middlemen, long queues, & agents who seek extra commission.

All you need to do is process the required documents online, customer service will guide you over a phone call. After all the required steps you will avail your insurance for your second-hand car in no time.

6. Know about IDV and premium relationship:

Insured Declared Value is different from the resale value of the product. Digital insurers allow you to select the to-be insured car’s IDV from a given range of slabs that is equivalent to the age of your car. IDV and the premium amount are codependent on each other, and its relation stands by the formula:

The more the value of an asset, the higher the premium payable to insure it. Therefore, the better slab range you choose, more the premium will be. Altogether a higher promised declared value will be credited when your second-hand car undergoes losses.

7. Choose Insurance who offer Stress-free Claims:

After all the premiums paid and all the time invested in buying insurance, what is the point if you’re not able to raise a claim in a timely manner due to a tedious claim process? Here’s why we suggest you to buy insurance at companies who are reliable and who offer stress-free claim procedures for your car insurance.

 

Bottom Line :

Now that you are aware of things to consider when buying car insurance in India, make an informed decision and purchase a best-suited plan. Do not be influenced by the wrong agents and their vicious plans.

Master all about second-hand car insurance policy in and out. Call customer support and be guided by insurance experts through the process.

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