Insurance for Second Hand Car

When it comes to buying cars, auto insurance is essential. Similarly, used car insurance is crucial for a pre-owned vehicle. So, why do you need second-hand car insurance in the first place? Since the policy's meaning and objectives remain the same, this insurance can help protect your vehicle against various associated risks. You can be confident that your old vehicle will be safeguarded in the event of mishaps, theft, or natural or man-made disasters.

Whether it is a new car or a used one, a third-party car insurance policy is a mandatory legal requirement if you wish to drive on Indian roads. A few other reasons to insure your vehicle are as follows:

 

Safeguards the Vehicle from Risks

A comprehensive second-hand car insurance plan covers you and your car against all adversities and risks such as fire, theft, natural calamities, accidents, etc.

 

Avoid Traffic Penalties with a Valid Policy

If you fail to present a valid used car insurance policy to a traffic police officer when asked, it can result in hefty penalties. As per the New Motor Vehicles Act, 2019, the penalty for driving without a valid car insurance policy is ₹2,000 and/or imprisonment of up to three months for the first offence. For subsequent offences, the fine is ₹4,000 and/or imprisonment up to three months.

 

Protection Against Third-Party Liability

One good thing about buying a used car insurance is that the policy covers loss/damage or bodily injuries caused to a third party in the event of an accident.

 

Personal Accident Cover

With a comprehensive second-hand car insurance plan, partial or permanent disability due to accident(s) is covered. The insurer will provide coverage for the treatment cost of the injured.

 

There are two types of second-hand car insurance plans that you can choose from:

 

Third-Party Second-Hand Car Insurance

As per law, it is mandatory to insure your car with at least a third-party car insurance plan. Such plans offer coverage only for all third-party damages and deaths. A third-party second-hand car insurance will not cover the damages incurred to your car.

 

Comprehensive Second-Hand Car Insurance

A comprehensive car insurance is an extensive plan that provides coverage not only for third-party liabilities but also for the damages incurred to your own vehicle. This is in the event of an accident, theft, natural or man-made calamities, etc. The comprehensive used car insurance price will be comparatively higher than a third-party plan, due to the extensive scope of coverage offered by it.

If the second-hand vehicle that you are planning to purchase does not have a valid car insurance policy, then you must buy a used car insurance plan for the same. Follow the steps below to buy a used car insurance plan for a second-hand vehicle on Bajaj Markets:

 

1. Visit the ‘Car Insurance Premium’ page

2. Enter your used car’s registration number and mobile number.

3. Complete the application form and enter the details of the second-hand car.

4. Choose the car insurance plan that best suits your needs.

5. Make the payment securely on the portal.

6. Your new car insurance policy for your second-hand car will then be sent to your email address.

If you are planning to buy a second-hand car soon, be mindful of the following things:

 

        1. Condition of the Vehicle

 

The first thing to do is to check the condition of the used car. Take the vehicle for a test drive and pay attention to how it performs on the road. Additionally, you can get the car checked by a trusted mechanic to know the condition of its engine parts, wheels, transmission, and other components.

 

        2. Ownership of the Vehicle

 

Before you seal the deal on the used car, verify if the seller is the actual owner of the vehicle. Also, cross-check the details on the registration certificate (RC) and insurance policy.

 

        3. Validity of the Car Insurance Policy

 

Check whether the vehicle has a valid car insurance policy. If yes, you will have to get the policy transferred to your name within two weeks of purchase. If not, you will need to buy a second-hand car insurance policy to be able to legally drive on Indian roads.

Moreover, if you are wondering how much will second-hand car insurance cost you, you can use the second-hand car insurance premium calculator to determine the same.

 

        4. Insurance Claim History

 

If the used car comes with an existing car insurance policy, make sure to check its claim history. You can get the details of the previous claims on the vehicle via the insurer by using the existing car insurance policy number.

 

        5. Essential Documents

 

Along with car insurance policy documents and RC, ensure that you acquire the original invoice of the car, servicing bills, PUC, and municipality certificate (if any) at the time of handover. These documents come in handy when transferring the ownership of the car to your name.

As stated earlier, when buying a second-hand car, it is essential to transfer the ownership of the vehicle along with its existing car insurance policy (unless expired) under your name. Follow the steps mentioned below to transfer the existing ownership of a used car insurance policy: 

 

1. Visit the nearest Regional Transport Office (RTO).

2. Apply to transfer the ownership of the car by transferring the registration certificate (RC) of the vehicle to your name.

3. Submit the requested documents.

4. Once the RC is transferred to your name, fill out a fresh proposal form for transferring the existing car insurance policy.

5. Submit the policy form along with the necessary documents.

6. Pay the insurance policy transfer fee.

7. The insurer will transfer the policy under your name shortly.

 

Note: Remember to check the details on the RC and insurance policy after the transfers.

Here’s a list of documents you need to submit along with the policy form:

 

1. Original RC

2. Form 29 and Form 30 signed by the seller (previous owner)

3. Copy of existing car insurance policy

4. Certificate of Insurance

5. No-Objection Certificate (NOC) from the seller

6. Proof of transfer of RC and transfer payment fee receipt

7. A copy of the new RC

8. No-Claim Bonus (NCB) difference amount (if any)

To sum it up, if you own a used car, or are in the process of buying a second-hand car, it is essential to secure it with a second-hand vehicle insurance to be financially protected during any unfortunate event like a road accident or theft. So, don’t wait any longer and get a good second-hand car insurance policy on Bajaj Markets now!