Second-hand car insurance or used car insurance is an insurance policy that covers your second-hand/used cars. It is the same as a normal policy that covers a new car except for the fact that a used car is old and the risk factor is higher when compared to a new car.
According to the Motor Vehicle Act, second-hand cars should at least have third-party insurance in place. Having no insurance for second-hand cars is illegal.
If your second-hand/used vehicle does not come with car insurance then you must pick and buy one.
Why it's essential to get your second-hand car insured
Reason #1: Third-party insurance is mandatory for all. So if you're not going for a comprehensive policy, it's important that you get third-party insurance.
Reason #2: It’s important and safe to get a comprehensive policy for second-hand cars because we don't know what was the condition of the car before and what's in store for us now. So to be stress-free, it's better to get a comprehensive policy that covers both third-party insurance as well as your own damages.
Reason #3: To keep you insured against the risk of your used car getting stolen, having comprehensive insurance would help
Car Insurance Policy Transfer Process
Ask the seller about the insurance he/she had and also talk to the insurance company about the claims that had been done to the used car. If he/she has not done any claims before, you can avail of the benefit such as an NCB discount.
If you're okay with that insurance policy, the easiest thing to do is to have the insurance papers transferred in your name along with the Registration transfer. If this is not done the insurance will deem it invalid.
Following are the documents needed for transferring the insurance:
●Original RC with the new buyer’s name
●Forms 29 and 30 that bear the sign of the previous owner
●Certificate of Insurance
●A copy of the car policy
●The transfer fee and transfer of registration certificate
●New proposal form
●A new copy of the registration certificate
●Old policy document
●No Objection Certificate from the previous policyholder
●No Claims Bonus difference amount, if any
Once the paperwork is done and the fees are paid, the insurance company will get to the work and transfer the car insurance to the new owner’s name.
Points to keep in mind while buying second-hand car insurance
- Before buying a second-hand car, make sure to know its value in the market and the depreciation rate. The insurance premium that you have to pay depends on the depreciation rate and IDV.
- Add-on Cover: Having an add-on cover for second-hand cars (engine protection cover, passenger cover, consumables cover, and so on) will be useful in the long run.
- Compare insurance policies before buying them. Read the terms and conditions properly for each insurance policy and carefully choose the one that best suits you.
- Always check the Claim Settlement process of the insurance company that you choose. For example, Chola MS has a quick turnaround time for claims. This can make your process hassle-free.
At Chola MS, we offer various customizations and a range of add-ons that can help you find the perfect policy for your vehicle. Get in touch with us to know more.
(Disclaimer: Above mentioned article is a sponsored feature. This article is a paid publication and does not have journalistic/editorial involvement of IDPL, and IDPL claims no responsibility whatsoever.)