What is Second Hand Car Insurance? Coverage | Renew/Buy – MY PRIVATE JOBS

What is Second Hand Car Insurance? Coverage | Renew/Buy

No matter if you’ve just bought new or used cars the insurance policy can be purchased for any of them. But the insurance needs change if you bought a second hand car, second hand car insurance also know as used car insurances are made to cover the needs and risks that are associated with used or a second hand car.

The purpose of a Second Hand Car Insurance is to protect your four wheeler vehicle from any damages caused whether in an accident, natural calamity, theft, etc that can lead you to a sever financial trouble. The second hand car insurance is just like any other normal car insurance covering any third party damage cover and for your own car damage.

Difference Between New Vs Second Hand Car Insurance

FeaturesNew Car InsuranceSecond Hand Car Insurance
CostUsually Higer (Less Depriciation)Usually Lower (More Depriciation)
Interest RatesHigherLower
Vechile AgeInsures vechiles that are brand newInsures older vehicles with higher mileage
Waiver Of DepriciationMay include for first few yearsUsually not offered
Safety FeaturesMay offer more discounts for additional safety featuresLess discount on safety features
Car ReplacementMay offered to replace with a brand new carNot Applicable

Important Things Before Buying Second Hand Car Insurance

If you are buying a second hand car, make sure that the 1st owner of your car already has current car insurance coverage and then get it transferred to your name in the first 14 days after purchasing as per Indian laws. 

Important Points Before Buying Second Hand Car Insurance

When you are getting your second hand car insurance it is an essential to ensure the following:

  • The car and the insurance will be transfered to your account successfully. It is recommended to do this within 14 days of the purchase.
  • You should be aware about the claim history for the vehicle. It is easy to complete this task by providing your policy’s number to the insurance company for your car.
  • If you’ve had car insurance policy in the past, make a point to move your no Claim Bonus to your new car insurance policy ASAP.
  • In the event that you’ve transferred your secondhand vehicle’s insurance into your name be sure to check the expiry date and ensure you renew it prior to or on the day of expiration.

Renew or Buy Second Hand Car Insurance

If you’ve recently bought an oldsecond-hand vehicle or you’ve realized that you don’t have car insurance plan for your car but you are able to cover the car

Here are three things you should remember when purchasing an insurance policy online for your vehicle:

Renew or Buy Second Hand Car Insurance

Car Use and Type Of Insurance

There are basically two types of insurances for cars:

  • The Third-Party Insurance.
  • Comprehensive Car Insurance. 

While it is generally suggested to get a Comprehensive Car Insurance for maximum benefits, you can also choose for a Third Party Insurance for your car if your plan is not to be using the car often or you plan to sell it in the near future.

In such cases there is a possiblity that a Third-Party Car Insurance could make sense since it covers your car’s legal liability.

IDV (Insured Declared Value)

The IDV, i.e. Insured Declared Valuation is the value you can expect to earn from your vehicle. As your car is old it’s IDV will be too lower (you can alter this through our website when purchasing an online car insurance) due to depreciation that occurs over time, based on how old the car is. 

The IDV directly impacts the amount of your premium as well as the sum insured. While your premium is minimal, the amount insured would also be small when you make the claim.

Add ons 

Add-ons are the type of policy you can choose to use when purchasing a car insurance policy for your car that you have inherited on the internet. However, this only applies when you’re purchasing a Comprehensive/Standard car insurance policy. 

These policies provide both your car and you by providing the most comprehensive coverage and benefits, such astyre protector as well as engine and gearbox protection as well as return to invoice etc. If you’re looking to purchase insurance policy for an older car consider which additional features would be suitable or not. 

Let’s say, if you have a car that is more than 5 years old then its not recommended to go for a zero depreciation or Bumper to Bumper insurance policy.

Purchase or Renew an Expiring Car Insurance Policy

What are the reason that are necessary to renew your expired Car Insurance Policy on time?

  • You’ll lose your NCB The NCB is your no Claim Bonus that accrues for the time that you haven’t filed any claims. The greater your NCB is, the greater your discount when renewing. If you don’t renew your policy prior to when it expires you will lose your NCB and consequently your discount!
  • More likely to pay penalty If you fail to renew your insurance for your car in time, you could be charged penalties as the original car insurance policy will no longer be valid when the expiry date is over.
  • Beware of the Financial Brunt In addition to the reduction in traffic penalty as well as your NCB by not renewing your insurance policy on time means you could lose the money you’ve earned in the event of an accident that’s unfortunate or a mishap. So, it’s always better to be safer instead of sorry and have your insurance renewal prior to the date that expires of the policy you have already purchased.

Conslusion

In conclusion, if you are purchasing car get a new car insurance, if you are purchasing a second hand car make sure you purchase the second hand car insurance. New car insurance comes with higher price because of the car’s higher market value and less depriciation, while the second hand car insurance comes in lower price because of its low market value and higher depriciation.

second hand car insurance value

While both of these insurance are for your car but they will keep a peace in your mind in case of any unfortunate even if you ever meet in the future.

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