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.
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:
Visit the ‘Car Insurance premium’ page on the Bajaj Markets website.
Enter the used car’s registration number and mobile number.
Complete the application form and enter the details of the second-hand car.
Pick the car insurance plan that best suits your needs.
Make an instant and secure online premium payment.
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.
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:
Visit the nearest Regional Transport Office (RTO).
Apply to transfer the ownership of the car by transferring the registration certificate (RC) of the vehicle to your name.
Submit the requested documents.
Once the RC is transferred to your name, fill out a fresh proposal form for transferring the existing car insurance policy.
Submit the policy form along with the necessary documents.
Pay the insurance policy transfer fee.
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.
Form 29 and Form 30 signed by the seller (previous owner)
Copy of existing car insurance policy
Certificate of Insurance
No-Objection Certificate (NOC) from the seller
Proof of transfer of RC and transfer payment fee receipt
A copy of the new RC
No-Claim Bonus (NCB) difference amount (if any)
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!