If you buy a second-hand car, don’t forget to purchase a car insurance policy for it. Doing this will help you stay financially protected against all kinds of dangers and risks. And do you know the best way to insure your second-hand car is by purchasing used car insurance? It is a type of car insurance policy that offers financial protection to second-hand car buyers in case of any unfortunate events. The policy works the same as the new car insurance as it safeguards against major loss or damages. You will get the same level of coverage that a new car gets under the used car insurance policy. Also, this type of car insurance policy covers your second-hand car from both third-party liabilities and own damage risks. If you want to learn more about the features and benefits of used car insurance, read this post further.
Why Should You Buy Used Car Insurance?
Buying car insurance is equally important for all car owners, whether the car is new or second-hand. Below are the reasons you should buy a car insurance policy for your second-hand car:
- Protects You Financially from All Kinds of Risks – A comprehensive second-hand car insurance policy will provide you coverage from all kinds of unforeseen events like – fire, accidents, natural calamities, manmade hazards, etc.
- Insurance is Compulsory for Cars – As per the Motor Vehicle Act, all car owners should purchase valid car insurance. And this law applies to both new cars and second-hand cars purchase. So, if you don’t want to pay a fine because of the non-availability of car insurance, purchase car insurance for your second-hand car.
- Third-Party Liability Cover – In case your second-hand car causes damages or loss to a third party property or person, the used car insurance will cover the damages or loss financially. The insurer will pay the hospital expenses for bodily injuries to a third party person in case of an accident. This cover ensures that you don’t have to pay from your pocket if your insured car causes any damage or loss to the third party.
- Personal Accident Cover – Your second-hand car insurance policy will protect the owner/driver of the car from any accidental injuries. So, if you meet with an accident in the future, don’t worry about the money, because your used car insurance will cover the cost of treatment.
Things to Check Before Buying a Used Car in India
Ensure a few things before buying a second-hand car so that you don’t face any troubles later. The following is the list of things that you should be aware of before purchasing second-hand car insurance –
- Make sure your second-hand car is in a good condition. If required, get it checked by a mechanic so you will be sure about its condition. Because the car insurance won’t cover the expenses of repair for – engine, wheels, transmission, cooling, etc. if the problem remains across these vehicle parts at the time of purchase.
- While buying a second-hand car, it’s important to know the actual owner of the car. This helps you cross-check the details present on the RC of your second-hand car. Because if a fraudulent RC is submitted to the insurer, your insurance application or claim request will be rejected immediately. Also, check the ownership history of the car for better understanding.
- Check whether the current owner already has car insurance or not. Because if the existing owner has car insurance, you can get it transferred to your name within15 days of purchasing the vehicle.
- If an existing car insurance policy is getting transferred to your name, you must check the claim history of the policy. You can get the claim history details from the insurance company by just showing the policy number.
- Before transferring car insurance or purchasing second hand car insurance, do check the following documents as they are required at the time of transferring the ownership of the car or purchasing a new insurance policy – Original invoice of the second-hand car, Car servicing bills, Pollution certificate and municipality certificate of the car if any.
- If you modify your second-hand car for greater comfort, safety or value, you will get a discount on your used car insurance premium.
Exclusions from Second-hand Car Insurance
You won’t get second-hand car insurance coverage in the following cases –
Loss due to Wear and Tear: If your car is damaged due to normal wear and tear, you won’t be eligible to file for a claim. However, if any form of mechanical or electrical failure occurs to your car due to rusting or other weather conditions, the same will not be considered valid for a claim.
Damage to Tyres or Electrical equipment: If your car tyres are damaged due to constant use and your car electrical equipment are damaged due to severe weather conditions, such damage will not be compensated under car insurance.
Damage Under the Influence of Alcohol: No compensation will be provided to you if damages are caused to the car due to an accident under the influence of alcohol or any other intoxicating substance.
Intentional Damage to Third Party: If you intentionally cause damage to a person or property, the same will not be covered under a car insurance plan.
Damage Incurred during War: You can’t file a claim for any loss caused to your car due to war, bio-chemical attack, or nuclear explosion and such other related events.
Damage Due to Racing: Any kind of collision damage or property damage if caused due to organized or unorganized racing will not be covered under the used car insurance policy.