A car is one of the most valuable assets you will own in your life. Whether the car is a brand new one or it is a second hand car, the liberating feeling you get being a car owner is unparalleled. However, one must also make sure that they can do everything possible to protect their prized possession. The best way to do so is to get a vehicle insurance policy. There are multiple insurance companies that provide attractive offers both for new and used cars.
One of the most economically friendly ways to own a car is to purchase a second hand car. Since it is a used car the value of the car has depreciated, you can get it at a much cheaper cost. However, while availing an insurance for your second hand car, here are a few things that you should keep in mind.
- When you purchase a second hand car it is essential that you check with the first owner whether he has a valid insurance policy. If he does have a valid insurance policy, you can simply transfer the insurance onto your name. This is an easy and convenient process since you do not need to get a new insurance policy.
- In order to get the policy transferred in your name, it is important that you get the registration certificate transferred in your name first. This is an important part of getting the insurance transferred. You will have to get the RC transferred from the RTO. Thus, it may take some time to process. However, once the RC is transferred the process of changing the ownership of the insurance becomes smoother.
- However, if you do want to avail a new insurance policy, with your preferred insurance company/bank, that is possible as well. Many car insurance companies provide insurance for used cars. You can apply for this insurance online making the process faster. Using the online premium calculator will also aid you in acquiring an insurance.
- A benefit of availing a used car insurance policy is that the IDV may become lower which in turn could result into a lesser amount of premium. Since the value of the car has depreciated compared to newer cars on the road, according to any insurance policy, the premium would be reduced. Calculating the premium for used cars is done by calculating the existing policy details, the change in ownership and the claims, if there were any in the past.
Very often people pay more attention to the criteria of purchasing the second hand car and not too much attention is giving to the process of availing an insurance.