Insurance for Second Hand Cars

Second Hand Car Insurance

Isn’t it a proud thing to own a car? New or second-hand, a car is an important asset for all of us. We put in a lot of hard work and planning to buy a car and it is an important asset in our lives. And like we protect our family members it is equally important that we proactively do everything possible to protect our valuable asset and why shouldn’t we, we have earned it with hard work.

As you know, as per the Motor Vehicles Act 1988, driving any vehicle, New or Second-hand without at least a third-party motor insurance is illegal. Apart from the legal mandate, having a motor insurance policy is also vital to secure yourself from possible mishaps.

When you decide to buy a second-hand car, there are several things that are essential to check. Make a checklist of all the documents/details you need to check from the first owner of the car and make a decision only when you are satisfied. One of these things is a car Insurance. Most of the buyers do not consider it as important, but this is what will eventually protect you and your pocket from any future loss. So, do your homework before you reach out to any insurance company, go online and make the concepts simple for yourself and if you don’t know where to actually start from; read all about it here on Digit. We make insurance simple for you.

What is Second Hand Car Insurance?

Seeing the current scenario, we all know we choose second-hand cars to save money. While we keep several factors in mind while purchasing one, Insurance too plays a major role. Second-hand car insurance holds equal importance as compared to the insurance of brand-new cars. The meaning is the same, and the purpose is also the same. While buying a second-hand car you must always check for the insurance history, it is better to have a look at the record of the insurance claims your now-to-be vehicle entails.

You can always call the insurance company your vehicle is insured with and verify the claim history if any. Buyers need to understand that it is important to transfer the ownership of the insurance policy in their name within two weeks of purchasing the car if you do not want to take the risk of getting a claim rejected.

Why to get a Second Hand Car Insured?

The same reason we buy insurance for our brand-new cars is the reason why it is essential to get our second-hand car insured too. We don’t know what is there in store for us, why to wait and bear the losses and regret not having a comprehensive policy.

Isn’t it better to have one policy already and live stress-free?

Car Insurance policies come with a lot of add-ons and benefits; it is important to look out for them with the right insurance company. We at Digit believe in providing the best add-ons and benefits to our customers so that they can make the most of their policies.

Add-On Covers available with Car Insurance

Before you choose this cover, it is important that you consider the following factors:

  • Engine and Gear Box Protection- This cover helps you getting the damage cost of your engine too, which is usually not covered in the comprehensive policy.
  • Breakdown Assistance- This add-on cover provides 24x7 roadside assistance up to 500kms from the city. It covers scenarios where you can be at the verge of breakdown such as flat battery, medical requirement, accommodation need, legal help or if you need towing facility. The best part? Asking for breakdown assistance doesn’t even count as a claim!
  • Tyre Protect-This is not covered in your comprehensive policy unless any damage to your car’s tyre happens at the time of the accident, but we have an add-on cover for this problem too. It covers any damage to your tyre, at any point in time that makes it unfit to use.

Transfer the Car Ownership and Insurance

Most car owners will already have the insurance and if you are lucky you may get the insurance policy with months still left before the renewal of the same. In that case, the easiest thing to do is to have the insurance papers transferred in your name along with the Registration transfer, if this is not done the insurance will be deemed invalid. Following documents will be needed for the transfer of insurance policy:

  • Original Registration Certificate (RC) with new buyer’s name
  • Forms 29 and 30 that bears the sign of the previous owner
  • Certificate of insurance
  • A copy of the car policy
  • The transfer fee and transfer of registration certificate
  • New proposal form
  • New copy of the registration certificate
  • Old policy document
  • No Objection Certificate from the previous policyholder
  • No Claims Bonus difference amount, if any

Once this paperwork is done and the appropriate fee is paid, the insurance company will get to the work and transfer the car insurance on the new owner’s name.

After doing all the paperwork make sure to check your name on the Insurance as well as the RC and also note that here, you being the new owner will have to pay any NCB(No Claim Bonus) difference, since NCB will remain with old owner and new NCB will be applicable for you. It is important to note that the RC and the insurance document should have the same owner.

Pro Tip - For those of you planning to sell their car, we have some important information for you too. Always remember when selling your car to a new owner, your NCB still stays with you, as NCB is applied only on the driver and not on the car. You can utilize the NCB on a new policy bought within 3 years.

NCB can be transferred while changing the vehicle or the insurer as NCB depends on the driver. The NCB rates are fixed, it ranges from 20% to 50% from 1 to 5 years. It becomes constant after 50% and that’s called NCB sunset clause. All add-ons except Standalone RSA and Tyre Protection take a hit on the NCB if claimed for, as all of them do affect the base policy and are considered as a claim.

Want to Buy a new Insurance for your Second Hand Car?

If your second-hand vehicle does not come with car insurance then you must pick one on your own, it is mandatory and is generally a quick process. Buying a new policy is always a better choice as it will ensure peace of mind, your own selection and no history of the previous ownership. The most preferred policy for second-hand car is a comprehensive insurance policy that can give you maximum coverage. You can get your car insured online quickly and efficiently within no time.

While so much thought is put into the purchase of a second-hand car, most of us are unaware when it comes to transferring the insurance policy to our name or buying a new one. This can have a huge financial impact in case of any mishap. It is very important to be vigilant and do it within the stipulated time as it is definitely the smarter choice, always!

Why should you buy Digit Car Insurance?

We treat our customers like VIPs, know how…

Super-Fast claims

We've settled 96% of all claims for private cars!

Cashless Repairs

1400+ Cashless Network Garages for you to choose from across India

Doorstep Pickup & Repair

Doorstep pickup, repair and drop with 6 months repair warranty - for repairs at our network garages

24*7 Support

24*7 call facility even on National Holidays

Smartphone-enabled Self Inspection

Just click the damages on your phone and you are done

High IDV per rupee

With us, you can customize your IDV as per your choice!