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Why It Is Necessary To Insure Your Second-Hand Car?

Published On Oct 20, 2021

Buying insurance helps in avoiding financial crunch which can arise due to car damages. You should purchase insurance even if your car is second-hand. Read this article to know why it is necessary to insure second-hand cars.

Car insurance is a type of financial protection that you can get to safeguard yourself in the case of an accident involving your vehicle. Property damage, injuries, and even death might occur as a result of these occurrences. Accidents can result in not only bodily harm and injuries but also legal action against car owners.

Depending on the policy's coverage, there are two types of car insurance: Third-party Liabilities and Comprehensive Car Insurance. Car insurance may be purchased in a variety of ways, you can purchase car insurance either online or offline. Buying vehicle insurance offline entails visiting the insurance provider in person or purchasing the coverage through an agent or a car dealer.

Why It Is Necessary To Insure Your Second-Hand Car?

Why It Is Necessary To Insure Your Second-Hand Car?

Driving an uninsured vehicle is illegal. The Motor Vehicles Act of 1988 mandates the purchase of at least a Third-Party Liability Policy. However, as compared to a comprehensive vehicle insurance policy, it gives less coverage. Any damage to the insured vehicle is not covered by Third-Party Liability insurance. Choose a Comprehensive vehicle insurance policy to ensure that you get the most out of your car insurance policy.

If you just purchased a used car without obtaining comprehensive car insurance, you may be exposed to the following dangers:

1. Third-party Risks: If you cause any sort of harm to a third party, you are responsible for the expense of restoring the damage or compensating the injured person. Your insurance company will cover all third-party risks if you have car insurance.

2. Theft of an Insured Car: Car theft is one of the most well-known crimes. Car insurance is the best way to safeguard yourself from this type of crime. When purchasing insurance, be careful to provide the exact Insured Declared Value (IDV) so that you get the correct coverage from your insurance company in the event of theft.

3. Natural disasters: Natural disasters like floods, earthquakes, landslides, and rockslides occur often. They are unexpected and can cause irreparable harm to a car.

4. Man-made disasters: Disasters like rioting, vandalism, and fires can also cause harm to your car.

Things to Consider When Buying a Second-hand Car

When obtaining second-hand car insurance, there are a few things to keep in mind. First and foremost, when purchasing a used car, you must ensure that the vehicle's ownership is also transferred to your name. Here are a few things to keep in mind if you're buying a used car:

1. Obtain a Transfer of Insurance Policy

It is required to transfer the second-hand car insurance to the new owner's name. In most situations, changing the kind and features of vehicle insurance before the policy period expires is not possible. On request, the insurer may, nevertheless, give an endorsement option.

2. Verify the History of the Claim

If you buy a used car, it's a good idea to check the claim history with the insurance to double-check the information supplied by the prior owner. To learn about the car's claim history, just call the insurance provider and provide the policy number.

Take Away

It is important to insure a used car in order to be protected from the many hazards that uninsured vehicles offer. Car insurance ensures that, in addition to providing cash protection, it also provides legal assistance.

You may also like to read: 

Tips to Maintain Safety on Roads While Driving A Car

Reasons Why Car Insurance Companies Can Reject Your Claims

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard. 

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