Second-hand car insurance is necessary for your second-hand car – Here’s why

Posted on: Dec 3, 2021 | 3 mins | Written by: HDFC ERGO Team

Second-hand car insurance is necessary for your second-hand car – Here’s why

Looking back on the days of earning your first dime can make you nostalgic. It isn't like comfortably grabbing a pre-baked cookie from the kitchen a few feet away, as it takes more effort. Today, to keep pace with the fast-moving world, owning a luxurious car has also become more of a necessity. Any damage is unpredictable, so it's your upfront responsibility to have a backup plan. This plan involves a car insurance policy for a new or used car. If you have a used car, it's better to safeguard it by heading on to a second-hand car insurance plan.

What is a second-hand car insurance policy?

This car insurance is an agreement that guarantees the safety of your second-hand car in the event of any casualties. It works similarly to a new car insurance policy.

Second-hand car insurance is the same for all ages, but add-on coverage may not apply to cars over 3-5 years old. However, the scenario takes a turn on upgrading to a premium-paid plan, in which the insurer is liable to pay for any damage within the policy period. According to this, even if a third party claims damage caused to their car, it is also covered.

Why Should You Get a Second-Hand Car Insured?

You legally can't drive a car on the road if you don't have third-party liability car insurance coverage. It only benefits you by paying for the damages done by a third party in the event of an accident, irrespective of who was at fault. Let's know how a second hand car insurance policy proves to be a boon in many ways:

• Confirms safety from all risks:

Cars are not just to be protected from accidents but other forms of dangers like natural disasters, fire, man-made threats, etc. So, to deal with these unexpected circumstances, an upgraded policy means a comprehensive car insurance policy works better.

• Mandatory for all cars:

The Motor Vehicles Act of 1988 clearly defines that driving with no valid third-party liability car insurance cover is a violation. This law is equally effective for new and second-hand cars.

• Covers third-party claims:

If your second-hand car is at fault for damaging the third-party possession or causing body injuries during an accident, you will be responsible for paying for it. But if you have a second-hand car insurance policy, your insurance company will pay every penny on your behalf to cover the damage caused.

• Covers your physical injuries:

Accidents don't just damage the car but may cause body injuries to the driver or owner. So, this policy also covers your injuries and pays for treatments.

How to transfer a second-hand car insurance policy to your name?

As per law, car insurance is mandatory before running on roads, so your used car will also be under a car insurance policy until the expiration date arrives. In most cases, the second-hand car insurance policy is about to expire, and there is less time left for renewal. If this occurs to you, make sure that it gets moved under your name in less than two weeks.

Transferring the ownership of the existing car insurance policy is not a headache anymore but a smooth process if you follow the steps below:

• Firstly, have a visit to the RTO or regional transfer officer.

• Then, you fill out an application that clearly states the transfer of the car's RC under your name.

• Submit your documents.

• After the transfer of RC to your name, you will have to fill out a fresh proposal form.

• Submit the policy form along with the documents.

• You will have to pay a transfer fee now

• Finally, there will be a transfer of policy under your name.

Documents Required to Transfer Ownership of a Second-Hand Car Insurance Policy

Go through the list below to obtain ownership of the second-hand car insurance policy.

• An original registration certificate with the buyer's name

• is needed.

• The previous owner should sign the forms 28, 29, and 30

• A copy of the current car insurance policy is required.

• Existing policy document

• Insurance certificate

• Fresh proposal form

• A former policyholder should hand over a no-objection certificate, or NOC.

• The RC evaluation takes place with a transfer fee.

• A new copy of the RC

• No claim bonus (NSB) difference amount.

How do I buy new car insurance for a second-hand car?

If your second-hand car doesn't have existing car insurance, it's a must-buy. The whole process is simplified, so go through the steps below to make an excellent purchase:

• Come to the site, HDFC Ergo, and click the buy option visible at the top.

• Then enter your car number, and if you don't have one, choose ''proceed without providing your car number.''

• Fill out the needed details, like RTO and city name, model and make of car, registration year, etc.

• Select the fuel type your car runs on, like CNG, diesel, petrol, an external CNG kit, etc.

• Proceed further by entering basic personal information like your name, email address, and phone number.

• Now browse premium plans for car insurance by multiple insurers and opt for an old car insurance plan that goes well with your coverage aspects.

• Now go for the add-on cover if you want.

• Pay for the final insurance through online payment methods.

• Lastly, the second-hand insurance policy will be issued, and you will receive an email with the papers.

Conclusion:

Hard-earned money makes you a hero of your story for investing years in grinding body and brain. So, before investing valuable earnings in purchasing a second-hand car, you must buy a second-hand car insurance policy within two weeks. This policy makes you stand a step ahead to get benefits in case of all kinds of dangers. They also provide legal support from the insurer in case the third party files a lawsuit against you for injuries. The benefits make it a great deal to head for a comprehensive car insurance policy. All in all, it's mandatory before your vehicle runs on the road.

FAQs:

Does a used car's insurance cost less?

Yes, the premium for a second-hand car insurance policy is lower than for a new car. It's because used cars have a low IDV or market value compared to new ones of the same model.

What will happen if I forget to transfer the insurance policy of my second-hand car to my name?

In such a scenario, you and the third party can't file a claim with the insurance company during an emergency.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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