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old Car Insurance : It is necessary to take insurance while buying an old car, know about Second Hand Car Insurance

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A car is one of your most valuable purchases. Whether the car is brand new or old, you want to make sure that it is well protected.

Motor insurance policy is the most economical way to protect your car from any damages. A third party liability insurance cover is mandatory for all motor vehicles plying on Indian roads. You should take car insurance with financial protection for your car.

Remember that third-party liability only insurance will not pay for any repairs that your car needs after an accident. Second hand car insurance is an agreement between an insurance provider and any person who is insured in a second hand car.

The insurance policy does not change depending on the age of the car. Some add-on covers are not available for cars older than three or five years. The insurer promises to pay you for any damages caused to your car during the policy duration for the premiums you have paid.

Any claim made by a third party who has suffered damages due to an accident involving your car is also covered. The insurer will also provide legal assistance to contest any claims and file claims against third parties.

Why is second hand vehicle insurance important?

Driving a car without valid third party liability car insurance cover is an offense as per the Motor Vehicles Act, 1988. This type of insurance cover pays for damages caused to a third party involved in an accident with you. So if you want the insurer to pay you for the damages. So you should take second hand car insurance to avoid this risk.

Third Party Risk

If there is any damage to a third-party in an accident caused by your car. Then you have to pay the cost of repair. And the necessary medical expenses for the injured person of any third party will also have to be paid. Your liability in case of third-party death or disability will be very high. Car insurance will cover these risks.

Theft

You suffer a lot if the car is stolen. You can arrange finance for car replacement by setting the right amount insured in your car insurance policy.

Natural Disasters

Natural calamities like floods, earthquakes, rock slides and landslides can occur at any time. Your car may get damaged during such a disaster. An insurance will secure you from the financial loss arising out of such an incident.

Man Made Disasters

Man-made calamities such as riots, vandalism or fire can also cause damage to your car. In such a situation, a car insurance will give you financial security.

What Are The Deductions Under Second Hand Car insurance

Second hand car insurance is subject to the same necessary deductions as a new car insurance policy. Its price is determined by IRDAI based on the cubic capacity of your car. It is fixed at Rs 1,000 for cars with cubic capacity up to 1500cc and Rs 2,000 for more cubic capacity. You can also opt for a voluntary deductible to reduce the premium charged by your car insurance company. Apart from this, you also have to pay the depreciation cost on the parts and accessories of the car. These are calculated according to the guidelines of IRDAI. For car paint, 50% depreciation is charged on nylon, plastic parts, rubber tires and tubes, air bags and batteries, 50% depreciation on material cost of paint and 30% depreciation on fiberglass.

What Are The Documents Required to Buy Second Hand Car insurance?

For this, ID such as passport, driving license, Aadhaar, PAN card, photo ID issued by the government can be there. Address proof should be passport, driving license, bank or post office passbook. Along with this, it is also necessary to have a recent passport size photograph, driving license, registration certificate of the vehicle and the official purchase invoice of the car.

 

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