Have you recently bought a second-hand car? If so, you might wonder whether getting car insurance is prudent. The simple answer is that you need a valid insurance policy for all vehicles, irrespective of whether it’s old or new. But why is insurance necessary for a second-hand vehicle? Find out below.
-
Protection from All Risks
The primary function of a car insurance plan is to offer protection against all kinds of losses and damages. While you might be more protective of a new car, protecting a second-hand car is also necessary. Second-hand vehicle insurance will protect your vehicle from unforeseen risks, including natural calamities, man-made hazards, fire, accidents, and more.
-
Legal Requirement
According to the Motor Vehicle Act in the Indian constitution, it is mandatory for all vehicles running on the road to be insured. Therefore, buy car insurance online to avoid getting penalised on the road.
-
Get Personal Accident Cover
A second-hand car insurance policy is necessary for protecting the owner-driver from injuries. If the owner-driver of a second-hand car ever gets in an accident, the insurance plan will take care of all medical expenses.
-
Manage Third-Party Liability
You need to buy car insurance online to cover the expenses of bodily injuries to a third-party individual or for any damage to a third-party property. With a second-hand car insurance policy, your insurer will pay for all third-party damages on your behalf.
What Happens If You Don’t Buy Insurance for Your Second-Hand Vehicles?
When a person is selling their car, they need to transfer ownership as well as insurance in the name of the new owner. While third-party insurance is transferred automatically, the new owner needs to register for their own damage insurance by themselves. After the insurance transfer, the responsibility of car insurance renewal lies on the new owner.
If there is no car insurance renewal after the transfer, the new owner won’t be able to make any claims. Several people assume that the previous owner will no longer be accountable for any damage caused by the sold car. But a third party can hold the previous owner accountable for physical injury or vehicle damage.
Second-Hand Vehicle Insurance Ownership Transfer Process
The steps to transfer a car insurance policy for a second-hand vehicle are as follows:
- Go to your Regional Transport Officer (RTO).
- Complete an application to transfer the RC of the car in your name and become the new owner legally.
- Provide all the required documents to the RTO.
- Once the RC is transferred to your name, you must fill out a new proposal form.
- Provide the car insurance renewal form along with the necessary documents.
- Make the payment for the policy transfer fee.
- Your insurer will transfer the new car insurance policy in your name.
Remember to check your name and other details on the RC and policy papers after a successful transfer.
Documents Required to Transfer Insurance of a Second-Hand Vehicle
The documents that you need to submit to get the new car insurance policy transferred to your name are as follows:
- Original RC or Registration Certificate of the second-hand car with the buyer’s name on it
- Forms 30, 29, and 28, signed by the previous owner of the car
- A copy of the ongoing car insurance policy
- Existing car insurance papers
- Insurance certificate
- New proposal form
- NOC from the last policyholder
- Proof of RC transfer
- Proof of transfer fee payment
- A new copy of the RC
- No Claim Bonus difference amount (if applicable)
Things to Remember Before Buying a Second-Hand Car Insurance Policy
Before you get your second-hand car insured, you must remember the following:
- IDV: The Insured Declared Value of a second-hand car is lower than a brand-new one. Therefore, the premium you need to pay for a used car insurance policy will be lower than a new one. But you should always check the premium amounts from different insurers before choosing a policy.
- Theft Cover: Old cars are more likely to get stolen because they don’t come with anti-theft devices. Therefore, you should try investing in a policy that offers protection against theft. Moreover, you can also consider installing the required security devices inside a used car.
- Claim History: Always check the previous claim history while buying a used car. You must confirm the claim history with the previous owner and the insurance company. Moreover, remember to check the details provided by the previous owner. You only need to give the policy number to your insurer to receive all details regarding the claim history of the second-hand car.
- Opt for Insurance Inspection: You can ask your insurance provider to perform a thorough inspection to get details about your second-hand vehicle’s condition, age, and damages. The inspection will also help you understand the total distance covered by the car and the availability of its spare parts.
- Change of Policy: In most cases, you can’t change the policy features before the end of its term. But you can request your insurer if you can modify the features or buy add-on covers during the existing term.
Wrapping up
If you need a four-wheeler insurance plan for a second-hand car, you must check out Future Generali. Go through different plans and pick one that fits your budget and requirements. You can add as many extra plans as you want to get comprehensive protection for your vehicle. So, go ahead and buy your second-hand car insurance policy now!
