What Is Car Insurance?
During unfortunate events, car insurance acts as financial security for your car. It includes coverage for property damage, bodily injuries or death. Apart from physical damages, even legal actions against car owners are covered under the policy.
Along with the financial assistance, car insurance also covers all legal obligations arising from third party. There are two types of car insurance depending upon the coverage offered by the policy. They are third- party liability and comprehensive car insurance policy.
There are two ways to buy car insurance, offline and online. One can buy car insurance online through a mobile application or by visiting the insurance provider’s website. Several policies are available in the market and this allows an individual to choose an affordable plan that meets their requirements. Whereas, one needs to visit the insurance company personally while buying car insurance offline.
Why Is It Essential to Insure Your Second-hand Vehicle?
Driving an uninsured car in India is against the law. According to The Motor Vehicles Act, 1988, it is mandatory in India to purchase a third party liability car insurance policy. The coverage offered in a comprehensive car insurance is different from the third party policy. A third party insurance does not cover the damages caused to the insured’s car. Whereas, comprehensive car insurance provides more extensive coverage for an individual’s car.
Following are the risks you are vulnerable to, if you own a second-hand car without buying car insurance.
Third-Party Risks
You will be responsible for paying the cost for repairing and injuries if any kind of damage is caused to the third party. Third party risks are covered under comprehensive plans as well as third party car insurance.
Theft of the Insured Car
One of the most notorious crimes, which takes place in India, is car theft. You can protect yourself against this crime by buying car insurance. In case of theft, you can receive the right amount from your insurance company, if you have selected the correct Insured Declared Value (IDV) while buying car insurance.
Natural Calamities
Natural calamities like floods, earthquake, landslides, and rockslides frequently take place in India. They are unpredictable and can damage your car beyond repair. Thus, you can protect your car against natural calamities by buying a car insurance policy.
Things to Keep in Mind While Insuring a Used Car
Get the Insurance Policy Transferred
Before the policy period ends, it is not possible to change the type and features of car insurance. Before buying the car insurance, it is highly recommended to transfer the insurance policy in the name of new owner.
Confirm the Claim History
To verify the given information by the previous owner, it is a good idea to confirm the claim history with the insurance company before buying a second-hand car. By providing the policy number to the insurance company, you can get the claim history of the car. Also, you can refer to the policy wordings to know all about the coverage and insurance claim process of your plan.
To sum it up, it is necessary to insure a second-hand vehicle to be protected from various risks, which are posted on uninsured vehicles. In addition, one should insure a car to comply with the Indian law.
