Availing of car insurance may be expensive; however, it is mandatory. It protects you from financial liability in case of accidental damage, theft, or injury due to an accident. Before you opt for insurance for your second-hand car or used car insurance, you need to understand the terms and conditions as well as the inclusions and exclusions
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Types of Car Insurance
Automobile insurance is primarily classified into the following three categories.
- Third-party liability cover
This is the minimum insurance coverage required according to the legal authorities. This type of insurance financially protects you against any liability because of an accident caused due to your fault.
- Collision cover
This cover is beneficial to protect you against accidental damage to the car. The insurance provider will pay the repair or replacement cost in case your vehicle is damaged in a collision.
- Comprehensive cover
This type of automobile insurance includes third-party liability as well as collision coverage. You may avail of add-ons, such as engine protection, roadside assistance, and zero depreciation.
Transfer Used Car Insurance
Before you opt for insurance for your second-hand car, you need to understand the terms and conditions as well as the inclusions and exclusions. Reading the fine print of the policy document is important. Most insurance plans do not cover damage or loss under the below-mentioned situations.
- If the policy is not in force
- Gradual wear and tear over the years
- If the driver does not hold a valid license
- Due to oil leaks
- If driver was under the influence of drugs or alcohol
- If driver violates guidelines specified by manufacturers
When you buy a used car, you must ensure immediate transfer of the owner’s name in the transport office records. Furthermore, you need to apply for transferring the insurance within 14 days from the date of purchase. If you fail to do this, your claim may be rejected. This is because the name on the insurance policy continues to be of the previous owner.
Case study of Used Car Insurance
In 2012, the UT Consumer Redressal Commission upheld an insurance agency’s decision to not pay the claim amount to Rajinder Kaur, a Chandigarh resident. The claimant had sold her car to Sunil Kumar but not transferred the registration and insurance in his name. The car caught fire and Mrs Kaur claimed the insurance amount from the company. However, the commission held that the agency was not liable to pay for damages as the car’s insurance was not transferred to the new owner Sunil Kumar at the time of the mishap.
If you are selling your car, make sure that you also transfer the registration and insurance in the name of the person you are selling your car to. If you are planning to buy a pre-owned car, tell all your prospective sellers that you won’t buy the car unless they transfer the registration and insurance also in your name.
Check Car Insurance quotes online
If you buy the vehicle through a used car loan, the lender ensures you have sufficient insurance coverage on it. Applying online for an insurance policy has several benefits; here are two such advantages.
- Affordable premium
When you choose to apply online, you may be able to purchase the policy at an affordable cost. This is because insurers levy lower overhead and administrative costs when you apply online. The benefits of the reduced costs are passed on to you.
- Comparison of different insurance plans
Several insurance companies offer different types of car insurance plans. When you choose to buy insurance coverage online, you may easily compare different plans to make an accurate decision. You may compare the features, benefits, premium, and other terms and conditions to find the most suitable plan for your needs.
When comparing the insurance online use following tips
Comparing Insurance Online
Having insurance cover is mandatory when you purchase a car. Different types of policies provide various benefits. It is important that you understand all the aspects related to used car insurance before signing on the dotted line.
Related Articles:
- How to Select the Right Used Car
- All You Need to Know about Used Car Loans
- What is Car Insurance
- Understanding Car : Box,Segment,Specifications
- Understanding Ex Showroom Price and On Road Price of Vehicle
- Cost of owning a Car
