29th August 2020
When buying a used car you must always get the insurance policy papers from the individual or dealer. In case, there is no insurance i.e. the policy has lapsed, it is better to apply for a fresh one. Here are some factors you should know about used car insurance in India.
If there is an existing insurance plan, you can transfer it to your name when buying the car.
You may renew lapsed insurance or buy a new one. Buying new insurance is always better as there would be other benefits with it.
Always go for a third-party insurance policy for used cars. If in an accident your vehicle causes any third party damages then the insurance company will bear the repairing costs.
The coverage is the same as a new car and thus it covers both self and third party damages.
A car insurance policy is mandatory on Indian roads and without one; you can be charged a hefty penalty. It is irrespective of new and used cars.
Used car insurance policies come with personal accident cover. This covers both the owner and driver of the car in case of accidents. So the treatment costs are paid by the insurance company.
The insurance policy also bears a car theft cover. So if you are buying a luxury car it is safe with a second-hand luxury car insurance policy.
The cover amount depends on the car model and condition of the second-hand car. So the cover amount of a compact car will differ from a luxury car.
A second-hand car insurance policy covers you from any manmade or natural calamities. Man-made calamities include riots, vandalism etc. Meanwhile, the natural calamities included are earthquakes, floods, landslides etc.
If there is already a policy of the used car you are buying then you do not need to buy a new plan. You can simply transfer the existing policy of the car to your name.
It is very easy to transfer your second-hand car insurance policy to your name. You will only need to provide a few documents. Here are the steps to apply for a transfer of the existing policy:
First, you need to visit the Regional Transport Office (RTO).
There you have to apply to transfer the ownership of the used car to your name. The registration certificate of the car will be transferred on your name.
Submit all the required documents they ask for.
After the RC is transferred to your name, you can fill a new proposal form.
Submit the insurance policy form with all documents.
You have to pay the transfer fees
After all the procedure is complete, your company will transfer the policy to your name.
Check your name and RC number careful when you get the policy papers in your hand
Original RC of the car with its buyer’s name.
Form 29 and 30 duly signed by the previous owner.
Copy of the papers of existing insurance policy
NOC from the earlier policyholder
Proposal form for new application
New RC copy
Transfer of RC proof and payment receipt of the transfer fee
No Claim Bonus or NCB amount difference, if there is any.
You can now easily apply for a new insurance policy for your second-hand car online. Here are the steps to follow to apply online:
Find a good insurance company online
Fill up a form with or without your car number.
You will need to give details of the RTO and city, year of registration, car type and model number etc.
Next, you will be required to choose the fuel type your car is compliant too. Choose between diesel, petrol, CNG and CNG external kit.
Now provide personal details like name, phone number and email id.
You will be given options to choose from different coverage plans. Select one according to your requirement and budget.
You will be given the option to choose some add-on covers as well. Select the ones you desire.
Then you can go ahead and pay the premium online.
Once you make the payment, your insurance policy for the second-hand car will be issued.
When you purchase a used car you have to consider many factors. You have checked the condition of the car, the manufacturing date, how many owners it has had before etc. These factors do not apply when you buy a new car. But used cars come with certain advantages like feasibility, budget-friendly etc. So before you buy a car on resale, check these points:
Check details of the car build up like model number and manufacturing date.
Check for all documents like RC, service book etc.
Also, enquire if the car has an existing insurance plan. If yes, then it has to be transferred but there cannot be any changes made to the feature of the policy. If there is no policy, like we said earlier, you will have to apply for a new one.
The condition of the car directly affects your policy coverage amount.
The coverage amount also depends upon whether it is a compact or luxury car. Compact cars have a lower coverage amount range than the luxury ones.
Check for the loan details along with a NOC from the lending company.
If you buy a second-hand car from Auto Best Emperio, you can rest assured of authentic cars. You can buy any car from us without having to worry about being kept in the dark. We minutely analyse each car and its condition before putting it up on resale. The price is also fixed keeping in mind all these factors. So your purchase is as transparent as it could be. At Auto Best Emperio we provide you with more than just car insurance. You will find solutions to everything that your car needs. You will find information on a lot of useful topics related to cars on our blog.