Used and Second Hand Cars In India

With car prices rising steadily, purchasing a brand new car may not always be possible or practical. However, that doesn’t mean that you have to give up on your dream of owning a car. You can instead purchase a used car. The Indian used car market is one of the biggest in the world. 

Some of the best used cars that you can purchase on a tight budget include the Maruti Suzuki Swift, Maruti Suzuki Wagon R, Hyundai i20 and Hyundai Santro. All of these cars are compact, easy to drive, and offer stellar fuel efficiency figures. 

And since both Maruti Suzuki and Hyundai have a long track record in India, you won’t have any trouble with service and maintenance. 

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All about Used/Second Hand Car Insurance

When it comes to purchasing cars, obtaining car insurance coverage to safeguard your vehicle is a must in the event of an accident, theft, etc. Similarly, if you are buying a second-hand car, used car insurance is required for that vehicle. Both, the new car insurance and the second hand car insurance serve the same purpose and have similar objectives. Having used car insurance protects your vehicle.

 

However, before choosing any insurance company, you must check for its claim history and market reputation in order to choose the best option. Additionally, it is critical to transfer ownership of the insurance policy in the buyer's name within two weeks after acquiring the car to avoid claim rejection. If you are considering buying used car insurance online, you may obtain it through the Bajaj Markets platform to have a seamless experience. 

Why is a Second Hand Car Insurance Needed

Here are several reasons to have car insurance for used cars. 

1. Security

A used vehicle insurance policy provides protection to your vehicle since it pays for damage your automobile sustains in an accident. In order to get cashless vehicle repair, you may go to a network garage or the insurance company will pay you for the damages.

2. Protection Against Legal Issues

According to the Motor Vehicle Act of 1988, every automobile owner in India is required to purchase car insurance, whether the vehicle is new or used, in order to legally drive on Indian roads. Failure to do so will result in significant fines or imprisonment or both. Hence, to avoid these complications, you must have car insurance for a second hand car. 

3. Third-Party Liability Coverage

If your used car causes damage to a third-party person or property, you will not have to pay for it out of your pocket since your insurance provider will pay for the damages.

4. Personal Accident Protection

Used car insurance comes in handy not only in safeguarding the vehicle but also protects the owner of the car in the event of any accident or injuries. Your insurer will cover the cost of your treatment which will lessen your financial burden. 

How to Transfer Ownership and Insurance of Second Hand Car

While buying a second hand car, you must transfer the ownership and its existing insurance coverage to your name. Here are the steps that will assist you in doing the same.

 

  • Visit the RTO (Regional Transport Officer) office.

  • Fill in the application form to transfer ownership of the vehicle by transferring the RC (Registration Certificate) to your name.

  • Submit the form along with the supporting documents.

  • Once the RC is transferred in your name, you are required to fill in another application form.

  • Provide the required documents like NOC, identity proof, etc. 

  • Pay the applicable charges.

  • Once all steps are completed, the ownership and existing car insurance will be transferred to your name. 

Types of Insurances for Used Car

Before buying used car insurance, you must know about its different types. It will help you in making an informed decision. 

1. Third-Party Cover

A third-party car insurance policy provides financial protection to you against the damages or injuries that you may cause to any person with your car. According to the Motor Vehicles Act of 1988, the Indian government has made third-party automobile insurance mandatory for anybody who owns or drives a vehicle in India. Failure to do so may cause you to pay hefty fines. If necessary, the authorities may also take legal action against the person.

2. Single Year Comprehensive

Comprehensive car insurance provides protection to your vehicle from accidents, theft, and natural catastrophes. In the case of an unforeseen calamity that results in loss or damage to you or your car, this insurance coverage will be your saviour. It is one of the best insurance coverage that you may provide for your second-hand vehicle since it also covers third-party liabilities. However, the price of this insurance plan is higher than the third-party policy due to its wide coverage. 

3. Stand Alone Own Damage Cover

Own Damage Car Insurance is designed to protect your vehicle from unanticipated own damages. This policy provides coverage for losses incurred by your automobile as a result of fires, natural disasters, road accidents, or other mishaps. It is intended to provide you with additional protection beyond third-party responsibility. However, the Insured Declared Value (IDV), determines the maximum amount of compensation you may be eligible to receive.

How to Buy New Car Insurance for Second Hand Cars

If the car you purchased doesn't already have an active insurance plan, you may get a new one for your used car by following the procedures.

 

  • Visit the official website of the insurance company.

  • Go to the ‘Car Insurance’ section.

  • Enter your car registration number, model number, fuel types, etc.

  • Provide your personal details.

  • Choose a plan that meets your requirements from the list.

  • You may also include add-ons in your coverage policy.

  • Pay the insurance premium using any online method from the options. 

  • Your second hand car insurance policy details and papers will be sent to your email address. 

Read More: Car Insurance Plans

Second Hand Car Vs New Car: What Should You buy

Buying a car is a significant financial investment. Hence, you must look for multiple options before making any decision. If you are unsure whether to buy a new or used automobile, the comparison below may help you decide.

Second Hand Car

New Car

Purchase value will be low as it will be a used car

Purchase value will be high

As the car will be a few months/years older, the maintenance cost will be high

Since the car will be new, the maintenance cost will be low

The insurance premium will be low

You will have to pay high premiums

The reliability of second hand car will be low

The reliability will be high

You may not get a warranty package with your used car

This car comes with a manufacturer warranty

Due to the high maintenance and low reliability, its overall running cost will be high

Since it is more reliable and have a low maintenance cost, its overall running cost will be low

Things to Consider Before Buying a Second Hand Car 

In order to buy a second hand car, you must keep a few things in mind that you must check. Here are the details about the same.

1. Vehicle's Condition

The first step is to inspect the condition of the used car. Take the car for a test drive and see how it performs on the road. You may also get the automobile inspected by a reputable mechanic to determine the condition of its engine components, wheels, transmission, and other parts.

2.Car Insurance Policy Validity

Verify if the car has current insurance coverage. If so, you have two weeks from the time of purchase to get the insurance changed to your name. If not, in order to legally drive on Indian roads, you must get used car insurance coverage. Additionally, you may utilise the car insurance premium calculator offered by insurers on their website to estimate your used car insurance cost. 

3. Important Documents

Be  careful to obtain the original invoice for the automobile, service invoices, car insurance policy documents, RC, etc at the time of buying a second-hand car. These papers are required for changing the title of the automobile to your name.

4. History of Insurance Claim

Check the claim history of the used automobile if it comes with an existing car insurance policy. Using the existing car insurance policy number, you may gain insights into prior claims on the vehicle from the insurer.

Why should You Buy Car Insurance from Bajaj Markets

Bajaj Markets is a perfect platform for you to search and secure 2nd hand car insurance since it has partnered with several lenders who offer insurance policies with several benefits. In addition to this, below are a few points explaining that buying used car insurance will provide you with additional advantages. 

1. Multiple Offerings

Several lenders are available on the platform. You may compare their plans and choose an option that suits your needs.

2. Quick Application Process

Since the application mode is online, you may get your used car insurance policy just by sitting at home. 

3. Minimal Documentation

The company follows the minimal documentation policy which will save your time and effort. You can obtain a used car policy in just a few clicks. 

4. 24x7 Assistance

Dedicated customer care officials will always be available for you. You can contact them in case of any query or help. 

5. Customised Insurance Plans

Another excellent benefit is you can customise your used car insurance plan as per your requirements. 

Conclusion

A used car insurance serves as a safety net and shields you from financial burdens emerging from any unforeseen event, like an accident, or theft, etc. Hence, whether you possess a used automobile or are in the process of purchasing one, you must protect it with second-hand vehicle insurance.

Check Out Car Insurance Plans Available at Bajaj MARKETS

 

FAQs on Used/Second-Hand Car Insurance

  • ✔️What is the second hand car insurance price?

    The insurance prices for used car insurance may differ depending on the vehicle and the insurance company. You may examine pricing on the website of the insurer from whom you want to get used vehicle insurance.

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

    To transfer ownership of an automobile to your name, you will need the following documents:

    • Original purchase receipt

    • Certificate of Registration (RC)

    • Certificate of Pollution

    • Car insurance policy documents

    • Receipt of road tax

    • NOC

    • Form 35

  • ✔️Is the cost of used vehicle insurance inexpensive?

    Yes. When compared to purchasing car insurance for a new vehicle, used car insurance has cheaper premium rates. The reason behind this is the low Insured Declared Value (IDV) of used cars in India.

  • ✔️How can I calculate the cost of used vehicle insurance?

    You may use the car insurance premium calculator to determine the amount of used car insurance. This calculator is offered by each insurer on its website.

  • ✔️Can I buy used car insurance offline?

    Yes. Second hand car insurance may be purchased offline. However, it is advisable to purchase it online in order to reap additional benefits such as discounts.

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