How can you insure a second-hand car in India?

Buying a second-hand car in India is a cost-effective way to own a car. Be it a new car or a used car, investing in a vehicle comes with a set of responsibilities, and securing it with comprehensive car insurance. Insuring a pre-owned car ensures protection against damages and liabilities arising from an unforeseen event. It is crucial to understand the process of transferring the existing policy or buying a new policy. Here is a brief guide to help you navigate the process of insuring your second-hand car.

Used car insurance

When you buy a second-hand car, you can either buy new insurance for a used car or transfer the existing policy. Second-hand car insurance provides coverage based on the depreciated value of the car. Zurich Kotak General Insurance also offers comprehensive car insurance for second-hand cars that protects against the damages or losses arising from accidents, manmade calamities, and natural calamities. A comprehensive policy comes with third-party liability cover, own damage cover, and many add-on covers to choose from. You can customise the cover to fit your insurance needs.

Importance of car insurance for a used car

Used car insurance is crucial for the following reasons:

Legal requirement

Insuring a car with at least third-party liability insurance is mandatory by law in India. Driving without it can result in fines or legal penalties.

Financial security

Insurance provides coverage against financial losses that may arise from accidents, natural calamities, theft, and other unforeseen events, which can be significant even for a second-hand car.

No Claim Bonus

Transferring or accumulating a no-claim bonus from previous car insurance policies can reduce premiums, making insurance cost-effective.

Protects car value

Second-hand cars also have substantial value. Comprehensive insurance helps safeguard this investment by covering repair costs or providing compensation in case of total loss.

Peace of mind

Knowing your car is insured allows you to drive with confidence, knowing you and your vehicle are protected against various liabilities and risks.

How do you transfer an existing car insurance for a second-hand car?

When you buy a second-hand car, vehicle ownership is transferred from the previous owner to you. If the previous owner has active car insurance, you can get that transferred in your name. Here are the simple steps to follow:

1. Contact the insurance company and give them a request for the transfer of policy ownership

2. Submit necessary documents for ownership transfer. This includes a transfer form, previous insurance document, copy of registration certificate, and sale deed.

3. Transfer the no-claim bonus from the previous vehicle owner to the new policy.

How to purchase new car insurance for a second-hand car?

If the existing car insurance cannot be transferred or has expired, you can buy a new car insurance. Here are the simple steps to follow:

1. Choose the comprehensive policy and customise the coverage as per your insurance need

2. Provide details of your car – make and model, manufacturing year, and more

3. Provide your details, such as name, contact number, address, etc.

4. Provide the important documents – registration certificate, sale deed, fitness certificate, identity proof, address proof, and photographs.

5. The insurance company will do a physical inspection of your used car if required.

6. Make premium payments and complete the buying process.

Conclusion

To conclude, be it transferring an existing policy or buying a new one. It is crucial to insure your second-hand vehicle against the risk of damage or loss. Ensure to keep all the important documents handy and customise the coverage at a reasonable premium.