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Second Hand or Used Car Insurance - Everything to know before and after purchase

Car is one of the most desirous things among this generation of people. With the advent of technology the prices of cars have come down and now car has become one of the most affordable items. But there are people who still cannot afford the brand new car, these people look for other options such as second hand car or used car.

The process of buying a new car and insuring it is quite simple but the process of buying used car or second hand car and insuring it is a tedious process and requires patience and carefulness. This article tries to explain the process of insuring your second hand or used car.

Process before purchasing Used Car:

Step 1: The first step while purchasing the used car is to check for the validity of insurance as well as the authenticity of the insurance policy. If the seller is providing the insurance copy which is valid and live, then you can proceed with the purchase process.

Road Transport Office (RTO) requires at least Third party insurance policy copy for registering the used vehicle.

Step 2: If the seller is not providing the live and valid insurance copy then it is advisable to take out insurance in the name of the seller and get the registration done. After registering the vehicle in your name you can apply for name transfer.

Step 3: Get the vehicle registered in your name and don’t forget to ensure that the vehicle in insured before taking out the vehicle in public places.  As per the Motor Vehicles Act it is compulsory to take third party car insurance before driving in public places.

Process after purchasing Used Car:

There are 2 scenarios after purchasing the used car in terms of insuring it. One is to purchase a new policy or the other is to apply for name transfer in the existing policy copy.

Taking New Policy:

If the vehicle is having only a Third party Car insurance and you want to go for full coverage of your vehicle, then you can take a new Comprehensive car insurance policy along with the required add-ons. These add-ons are to be selected based on your requirement and are not a compulsion.

The process of taking new insurance policy is simple, visit the online website for car insurance online and do the car insurance comparison using the car insurance calculator, get the best car insurance quotes and select the best one and do the car insurance payment online.

Online> Fill the details> Get a quote> Payment Successful > Policy Copy

After taking the new policy you can start driving your vehicle and be safe and secure as any loss or damages to your vehicle are now covered by the insurance company.

Process of Policy Transfer:

The process of policy transfer to your name is made quite simple these days with the advent of the technology and the process can be done within 1 day.

  • To transfer a policy in your name, a fresh proposal form has to be filled along with the evidence of transfer i.e.: new RC Copy. These documents are to be submitted in the nearest branch of your insurance company.
  • A nominal fee is to be paid to the insurance company to process the name transfer request.
  • The insurance company may demand inspection of the vehicle in some cases which will be carried out by the insurer and on the basis of satisfactory name transfer will be done.
  • Once the name transfer is done the new policy copy reflecting your name will be shared with you.

Things to remember:

  • If the insurance is in the name of previous owner and a claim has come, then there is a chance that the insurance company may repudiate your claim. So, always ensure that the insurance is in your name after the purchase of used car.
  • Ensure that the insurance is valid at all times and renew before the policy expiry period.
  • Most of the insurance companies may reject the pre inspection report of your car if there are any existing damages to the car in case of expired car insurance renewal. For car insurance expired cases inspection can be done using the link sent by the insurance companies or physical inspection would be carried out based on the need. Without inspection most of the insurance companies would not accept the risk.

The best website to purchase a second hand car insurance is where there are dedicated agents to assist you in buy car insurance policy as per your needs.

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