Buying a second-hand car is a smart way to get your dream car within your budget. However, buying the right used car for yourself may take a while, as this involves a lot of research. Once you have chosen the vehicle, the whole process of transferring the ownership and insurance begins.
A used car insurance plays a significant role in buying or selling a used car. Getting the policy transferred in your name is extremely important as you will face problems later while filing for an insurance claim. If you have bought a second-hand car without transferring the policy, it will be deemed cancelled, and you will not be able to make any claims on it.
When it comes to used cars, having a second hand car insurance is extremely important as older cars are more prone to wear and tear.
If you are planning to buy a used car, here are some essential points that help you secure a second hand car insurance:-
- As soon as you purchase a used car, make sure to transfer the car insurance policy in your name within 14 days of purchase.
- To ensure that the policy transfer is completed successfully, you need to fill a fresh proposal form and submit the evidence of purchase such as, transfer of registration certificate, forms 29 and 30 duly signed by the previous owner along with the transfer fee and a copy of the previous car insurance policy to the insurance provider.
- The change of ownership may take some time at the regional transport office (RTO). However, to transfer the policy to your name, the documents as listed above are sufficient to initiate the endorsement. You should also submit a copy for your new registration issued by the RTO to avoid any glitches at the time of claim.
- If your insurance policy has been transferred but has not been submitted to the insurance company, you will need to furnish the proof of transfer of registration certificate to the insurance company in order to ensure that your claim is settled.
If the second-hand insurance transfer is still in process, your claim will not be rejected. However, your claim will be settled only after the proof of transfer, i.e. the registration certificate has been submitted to the insurance company.
On the other hand, if you feel that the previous policy offers inadequate protection, you have the freedom to opt for a second-hand car insurance policy with better features and benefits.
Why Is It Necessary To Insure Your Second-Hand Car?
It is illegal to drive an uninsured car in India. Under the new Motor Vehicle Act of 2019, it is mandatory to have third party car insurance under your name. However, third party car insurance provides less coverage and hence has low premium rates. If you want extensive coverage, you can opt for comprehensive car insurance. It is noteworthy that comprehensive coverage has relatively high premium rates.
If you have recently purchased a second-hand car without a used car insurance plan, you are vulnerable to the following risks –
Third Party Risks:
If your vehicle causes any damage to the third party, you will have to bear the expenses from your pocket – whether it is damage to property or injuries to the third person. With a reliable car insurance plan, you will be covered against all third party liabilities.
Theft of Insured Car:
Car theft is quite a notorious crime in India. To protect your car against this, you must have comprehensive car insurance in your name. Just set the correct insured declared value (IDV), and you will receive the right compensation amount from your insurer in case of theft.
Natural calamities like floods, earthquakes, landslides, etc. are quite common in our country. These are unforeseen events and can damage your car beyond repair. With an appropriate car insurance plan, you will be protected against natural calamities.
These generally include riots, vandalism, fires, etc. Much like natural calamities, man-made disasters can damage your car beyond repair. Having car insurance will protect you against it.
Get Comprehensive Car Insurance Online at Finserv MARKETS
Nowadays, everything is easily available on the Internet – and so is car insurance. Despite the ease of use, a lot of people are still reluctant to buy car insurance online. Buying car insurance through online means will save you a lot of time and efforts, and you can seek coverage anytime and anywhere!
If you are looking for a reliable car insurance plan, then get in touch with us at Finserv MARKETS. We offer car insurance plans online with wide coverage and features which can be bought from the comfort of your home. Just make sure to get the second-hand car insurance policy transferred within the stipulated time to ensure that your car receives a complete insurance cover.
Whether you are buying a new car or a used car, it is a mandate to own a third party liability cover. Read what is third party insurance to know more.
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