Tips for Buying Insurance for a Used Car

 

A car protects you and your family to travel safely, like having car insurance protects your car from any damages or accidents. Be it a second-hand or a brand-new car, having proper Insurance for your car is a must. Many insurance companies provide excellent car insurance policies for both new and old cars. Owning a second-hand vehicle is more economical because the value of the car will be depreciated, and you can purchase it at a much cheaper cost.

 

Whether you own a brand-new or second-hand car, choosing the right insurance policy is important for every car owner. Thus, it is more responsible to check for a proper car insurance policy for your second-hand car, depending on the age of the vehicle, condition, and coverage, so that you can have peace of mind while travelling on the road.

 

Tips for buying Insurance for a Used Car

As per the Motor Vehicle Act of 1988, it is mandatory to have a Car Insurance policy for both Brand new and Second-hand cars. Also it is a violation if you are driving the car without having valid third-party liability coverage. Third–party insurance protects damages to a third party by an insured vehicle. It covers all physical injuries, vehicle/ property damage and death whereas own damage insurance covers you against damages to you or your vehicle that is insured.

 

When you are planning to purchase a used car, you should always check with the first owner for a few details to see if he has a valid insurance policy. Let us look at some of the important tips to follow when your second-hand car is already insured and if your used car needs a new insurance policy.

 

Tips for Used Car which is already insured

1. Check if the second-hand car is already insured with the right coverages.

 

2. Transfer the insurance policy on to your name if you don’t have to buy a new insurance policy for your second hand car.

 

3. Get the Registration certificate transferred to your name from the RTO. Though it may take some time, it will make changing ownership smoother and faster.

 

4. You must pay the policy transfer fee amount for the policy to get transferred to your name from the previous owner.

 

5. Once you have completed all these steps, verify the documents to see if the motor insurance company has properly transferred the policy to your name.

 

Tips for Used Cars to apply New Insurance Policy

1. Applying for a new insurance policy for your Used car online will make the process easy and simple.

 

2. The premium to be paid for the insurance policy can be calculated using a car insurance online premium calculator, which allows you to check the amount and compare prices in the market.

 

3. Always choose the right car insurance policy that best suits your needs and protects your car.

 

Advantages of having Used Car Insurance

1. When you buy a second-hand car, the value of the car gets depreciated, and the Insured declared value (IDV) also reduces, which results in paying a low Insurance premium.

 

2. Car Insurance policy always protects the car from risks like damages and accidents. It also covers third-party liabilities and owner-driver from accidental injuries.

 

Conclusion

When buying a second-hand car, the owner usually concentrates on a few things like the price, model, mileage, and how many kilometers the car has been driven. However, it is very important to check whether the car has an insurance policy that covers own damage cover and third-party cover. It is mandatory to have a third-party insurance coverage whether be a brand new car or a secondhand car.

 

Shriram Car Insurance policy provides more benefits and add-on covers for both brand-new and second-hand cars. Choose the insurance coverage that best suits your car, as the right car insurance policy would provide safety and peace of mind.

 

FAQs 

1. Is buying a Car Insurance policy for Second-hand cars important?

Yes, it is mandatory to buy a Car Insurance policy for both brand-new and second-hand cars. As per the Motor Vehicle Act of 1988, it is a violation to drive a car without valid third-party liability coverage.

 

2. Should I buy a new Car Insurance policy for my Second-hand car? 

It is not necessary to buy a new insurance policy if your Second-hand car already has a Car Insurance policy. While transferring the Registration Certificate of the car to your name, you can also transfer the existing policy document to your name from the previous owner by paying a fee.