What is Second-Hand Car Insurance or Used Car Insurance?

When it comes to buying cars, auto insurance is essential. Similar to that, used car insurance is essential for a pre-owned vehicle. So, why do you need second-hand car insurance in the first place? The policy's meaning and objectives remain the same. By having used car insurance, you can be confident that your vehicle will be safeguarded in the event of mishaps, theft, or natural or man-made disasters.

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Why Do You Need a Second-Hand Car Insurance?

Whether it is a new car or a used one, a car insurance policy is a mandatory legal requirement. If you wish to legally drive on Indian roads, a third-party car insurance policy is imperative. In this scenario, you need to insure the second-hand car with a used car insurance policy. A few reasons to do so are as follows:

  • Safeguards the Vehicle from Risks

A comprehensive second-hand car insurance plan covers you and your car against all adversities and risks such as fire, theft, natural calamities, accidents, etc.

  • Avoid Traffic Penalties with a Valid Policy

If you fail to present a valid used car insurance policy to a traffic police officer when asked, it will lead to hefty penalties. As per the New Motor Vehicles Act, 2019, the penalty for driving without a valid car insurance policy is ₹2,000 and/or imprisonment of up to three months for the first offence. For subsequent offences, the fine is ₹4,000 and/or imprisonment up to three months.

  • Protection Against Third-Party Liability

One great thing about buying a used car insurance is that the policy covers loss/damage or bodily injuries caused to a third party in the event of an accident.

  • Personal Accident Cover

With a comprehensive second-hand car insurance plan, partial or permanent disability because of accident(s) is covered. The insurer will cover the treatment cost of the injured.

Types of Insurances for Used Cars

There are two types of second-hand car insurance plans you can choose from:

  • Third-Party Second-Hand Car Insurance

As per law, it is mandatory to insure your car with at least a third-party car insurance plan. Such plans offer coverage only for third party damages and deaths. A third-party second-hand car insurance will not cover the damages to your own car.

  • Comprehensive Second-Hand Car Insurance

A comprehensive car insurance plan is an extensive plan that provides coverage not only for third-party liabilities but also for the damages incurred to your own vehicle in the event of an accident, theft, natural or man-made calamities, etc. The comprehensive used car insurance price will be higher as compared to that of a third-party plan, due to the extensive scope of coverage.

How to Buy a New Car Insurance Plan for Your Second-Hand Car

If the second-hand vehicle that you are planning to purchase does not have a valid car insurance policy, you must buy a used car insurance plan for the same. Follow the steps below to buy a used car insurance plan for a second-hand vehicle at Bajaj MARKETS online:

 

  1. Visit the ‘Car Insurance premium’ page on the Bajaj Markets website.

  2. Enter the used car’s registration number and mobile number.

  3. Complete the application form and enter the details of the second-hand car.

  4. Pick the car insurance plan that best suits your needs.

  5. Make an instant and secure online premium payment.

  6. Your new car insurance policy for the second-hand car will be sent to your email address.

5 Things to Keep in Mind When Buying Second-Hand/Used Cars in India

If you are planning to buy a second-hand car soon, be mindful of the following things:

        1.Condition of the Vehicle

The first thing to do is to check the condition of the used car. Take the vehicle for a test drive and pay attention to how it performs on the road. Additionally, you can get the car checked by a trusted mechanic to know the condition of its engine parts, wheels, transmission, and other components.

        2.Ownership of the Vehicle

Before you seal the deal on the used car, verify if the seller is the actual owner of the vehicle. Also, cross-check the details on the RC and insurance policy.

        3.Validity of the Car Insurance Policy

Check whether the vehicle has a valid car insurance policy. If yes, you will have to get the policy transferred to your name within two weeks of purchase. If not, you will need to buy a second-hand car insurance policy to be able to drive legally on Indian roads.
Moreover, if you are wondering how much will a second-hand car insurance cost you, use the second-hand car insurance premium calculator to determine the same.

        4.Insurance Claim History

If the used car comes with an existing car insurance policy, make sure that you check its claim history. You can get the details of the previous claims on the vehicle via the insurer using the existing car insurance policy number.

        5.Essential Documents

Along with car insurance policy documents and RC, ensure that you acquire the original invoice of the car, servicing bills, PUC, and municipality certificate (if any) at the time of handover. These documents come in handy when transferring the ownership of the car to your name.

How to Transfer Ownership of a Used Car Insurance

As stated earlier, when buying a second-hand car, it is essential to transfer the ownership of the vehicle along with its existing car insurance policy (unless expired) under your name. Follow the below steps to transfer the existing ownership of a used car insurance policy:

 

  1. Visit the nearest Regional Transport Office (RTO).

  2. Apply to transfer the ownership of the car by transferring the registration certificate (RC) of the vehicle to your name.

  3. Submit the requested documents.

  4. Once the RC is transferred to your name, fill out a fresh proposal form for transferring the existing car insurance policy.

  5. Submit the policy form along with the necessary documents.

  6. Pay the insurance policy transfer fee.

  7. The insurer will transfer the policy under your name shortly.

Note: Remember to check the details on the RC and insurance policy after the transfers.

Documents Needed to Transfer Ownership of Used Car Insurance

Here’s a list of documents you need to submit along with the policy form.

 

  1. Original RC

  2. Form 29 and Form 30 signed by the seller (previous owner)

  3. Copy of existing car insurance policy

  4. Certificate of Insurance

  5. No-Objection Certificate (NOC) from the seller

  6. Proof of transfer of RC and transfer payment fee receipt

  7. A copy of the new RC

  8. No-Claim Bonus (NCB) difference amount (if any)

In Conclusion

To sum it up, if you own a used car, or are in the process of buying a second-hand car, it is essential to secure it with a second-hand vehicle insurance to be financially protected during any unfortunate event like a road accident or theft. So, wait no more! Get your hands on a good second-hand car insurance policy now!

 Check Out Car Insurance Plans Available at Bajaj Markets

FAQs on Used/Second-Hand Car Insurance

  • ✔️Can I buy used car insurance on Bajaj MARKETS?

     Yes. You can buy second-hand car insurance at Bajaj MARKETS. The process is similar to buying a new car insurance policy on our platform. You can refer to the steps to buy used car insurance explained in the article above.   

  • ✔️What documents do I need to transfer the ownership of a car?

     You need the following set of documents to transfer the ownership of a car to your name:

    • Original purchase invoice

    • Registration Certificate (RC)

    • Pollution Certificate

    • Car insurance policy papers

    • Road tax receipt

    • Form 35

    • No Objection Certificate (NOC)

  • ✔️Is the premium low for used car insurance?

    Yes. Used car insurance attracts lower premium rates as compared to buying car insurance for a new vehicle. It is because second-hand cars in India have a lower Insured Declared Value (IDV). This further reduces the overall cost of the car insurance policy, even if the scope of coverage remains the same.

  • ✔️How can I calculate the used car insurance premium?

     You can use the car insurance premium calculator to determine the policy cost for the used car you desire to purchase.

  • ✔️What will happen if I do not transfer the existing insurance policy of my second-hand car?

    If you do not transfer the existing car insurance policy of your second-hand car, you will not be able to file a claim for the damages in case of a third-party liability or own damage. Moreover, it is a punishable offence under the Motor Vehicle Act, 2019.



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