Reasons Why You Should Insure Your Second Hand Car
It doesn’t matter whether it is a brand new one or a used car, you actually increase your asset value by purchasing a car. Thus, you must insure your car to protect it from all losses caused by accident, theft, or a natural calamity. Let us take a look, why you need insurance for your second-hand car.
Mandatory by Act
As per Indian Motor Tariff 2002, it is mandatory for every vehicle owner to have insurance cover for their vehicles. So for running your car on the streets of India you must have a car insurance policy.
It is again stated in Section 157 of Motor Vehicle Act 1988, all used car owners shall mandatorily transfer the can insurance policy to his/her name within 14 days of registering the car ownership. Thus to avoid penalties and to make your car legal you compulsorily need to insure your second-hand car also. Again, if you get caught for not having insurance, your driving license will be suspended.
Get Cover for Third-Party Liabilities
Third-party liabilities refer to the damages that occurred to the third party caused by your car. By transferring the insurance policy in your name, you will be eligible to claim for the losses of third party due to your car and the insurance company will pay the amount to the party. This coverage includes death, physical injury, or loss of any property of the third party. On the other hand, in the absence of the policy, you won’t be able to claim the cover and the previous owner will get a legal notice from the court. In that case, the previous owner will have to incur the losses of the third party.
Get Complete Risk Protection
You may opt for a comprehensive insurance policy for your second-hand car. This insurance covers all kinds of adversities your car may go through. This policy will protect you from the following risks:
- The loss occurs to you due to theft of the car: To become eligible for this insurance, you need to install the security devices that can protect your vehicle from theft. Generally, second-hand cars come without such anti-theft devices. Thus to get this insurance, you need to ensure your car has all the required devices.
- Any accidental loss: Cover for the damages, occurred to you or your car due to an unforeseen incident, comes under this insurance policy. This may be death or any injury to the driver or other traveler and damage of your own car due to an accident or fire.
- Natural Calamities: You will get covered for any impairment of the car even due to natural calamities.
- Man-made Disaster: Any tragedy with your car due to human interference such as negligence of other persons or due to any terroristic activities will get covered by the insurance policy.
Things to Keep in Mind
Auto insurance remains valid for a particular period. If not renewed within the specific period, it gets expired. While purchasing an old car make sure the car has valid insurance papers. If the car isn’t covered by any policy, you may purchase a new policy from any preferred insurance company.