Old or used Car Insurance

Car is one of the most convenient ways to commute to our desired destinations. These days, cars have evolved to become a necessity from luxury once upon a time. However, not everyone can afford a new car as they are increasingly getting pricey. So, a lot of people buy used-cars which are cheaper than new ones. Even if you buy a second hand or old car, it is still important to carry a valid license as per Indian motor act, 1988. The best way to do so is to buy second hand car insurance

What is Old Car Insurance?

Used Car Insurance is a type of car insurance that offers coverage to second-hand, used or old cars. It acts like a normal car insurance and offers protection against own damage and third party liability depending upon the type of policy that you opt. Nobody can predict an accident. It can drain you financially and emotionally as well.  Used car insurance offers coverage against accidents, natural and man-made disasters and offers you a peace of mind. 

What is it important to buy Used-car Insurance?

Buying car insurance is important for all car owners irrespective of your car being new or old. Mentioned below are the reasons as to why you should buy used car insurance. 

  • Guarantees Complete Protection: Buying a Used-car Comprehensive Insurance offers complete protection against all kinds of losses. It can provide coverage for accident, bodily injuries, and damages due to natural and man-made calamities
  • Mandatory for all cars: According to Motor Act 1988, it is important for every car owner to possess valid car insurance. The law applies to both new and old cars. Driving without a valid car insurance policy attracts hefty fines
  • Third Party Liability: Depending on your needs, you can opt for a comprehensive or third party insurance policy. In the event of third party liability, the insurance company will take care of your liabilities and pay it on your behalf during accidents. A Third Party cover does not offer protection against own damage
  • Personal Accident Cover: A Comprehensive Used Car Insurance not only offers protection to your vehicle but also offers protection to the policyholder from accidental injuries. In the event you suffer an accident, the policy would take care of your medical expenses and also for disability or death. 

Existing Car Insurance Policy

Normally, when you buy a used car, it should come with Insurance. However, you have to get the car insurance policy and ownership of car transferred to your name within two weeks for it to be valid. You can follow the below steps to transfer the ownership of your existing car insurance policy

Transferring your Existing Car Insurance Policy

Make sure you transfer the Insurance policy from the ex-owner’s name to your name within 14 days from the purchase of the car. Follow the below process for transferring the insurance policy:

  • Visit an RTO and fill up a form to transfer the RC of the car to your name
  • Submit the documents required (Forms 29 and 30 by your previous owner) along with a transfer fee
  • Once the RC transfer is done, fill up a proposal form  along with all required documents
  • Pay the policy transfer fee
  • The Motor Insurance Company will transfer the Insurance copy to your name

Steps to Buy a New Car Insurance for your Old Cars

In the event the used car you bought does not have a valid insurance, then you will have to buy a second hand car insurance policy for the same. Follow the below-mentioned steps in order to buy new insurance policy for your second hand cars,

  • Visit Fincover.com and enter your Car’s registration number
  • Enter the details required such as Car’s make, model, fuel type etc
  • Provide  your personal details like name, mobile number, area etc
  • Click on Submit to View Quotes
  • You will get the quotes listed from various insurers based on your input
  • Compare the features and budget of different insurance plans
  • You can also include add-ons for enhanced protection
  • Make the payment and once the payment is successful, you will get your policy documents in your email within few minutes

Points to Remember while buying an Old Car Insurance

When you are buying second-hand or used car, you will have to keep in mind a few things,

  • Get Sufficient Coverage: There are multiple car insurance companies offering plans with different limits. After doing a thorough research, select the one that meets your individual requirements.
  • Claim Settlement Process: Check the CSR Ratio of various insurers before zeroing in on purchase. The CSR gives a good idea about company’s claim settlement record. Pick the one with a high CSR rate
  • Right IDV: It is a tricky party as old cars have depreciated value. It is important to gauge the actual worth of your car at the time of policy purchase. Your premium largely depends on the IDV. Also, the IDV is the total compensation you are going to get in the event of theft or damage beyond repair of your used car. So, pick the right IDV
  • No Claim Bonus: A No Claim Bonus will be applicable for every non-claim year. If you want to sell your old car or buy a new one, your accrued NCB can be transferred
  • Add-ons: Add-ons are the best way for enhanced protection for your cars. No matter whether they are used or new, you can avail a range of add-ons along with your car insurance policy. Some add-ons like Zero Depreciation, Engine Protection cover can be availed by paying a small fee. Make sure, you opt for the required add-ons and get full protection for your old car.
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