Insurance tips for buying or selling a used car

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The process of buying or selling a used car can be quite overwhelming. Letting go of a car which helped you create memories is difficult. But, this is exactly why you should complete the process of the sale of your car. The most common mistake of selling a car is that the owner does not transfer the ownership of his/her car in the name of a new buyer. This could get you in trouble if the car is involved in an accident as you don’t own it anymore but did not transfer the ownership. Apart from this, we have a few tips to help you have a smooth sale.

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What is Car Insurance?

Car insurance is a type of motor insurance which can be purchased to insure your car. Technically, a car insurance policy is a contract between the owner of the car and the insurance company which lists the terms and conditions, inclusions and exclusions, and other important details of the contract.

Type of car insurance policies depends on the coverage it offers. There can be a third party car insurance or a comprehensive car insurance policy. Nowadays, you can buy car insurance online. Car Insurance Policy bought online is completely valid and holds importance equal to a car insurance policy bought offline.

Insurance Tips for Buying/selling a Used Car

The process of buying or selling a used car is not only limited to handing the car keys to the buyer and accepting payment. One needs to take care of a number of things while completing the process. Here are tips for buying or selling a used car

Tip #1: Get the Condition of the Car Evaluated

Before buying or selling a second-hand car, it will be helpful if you get its condition evaluated by a professional. Basis the result you can decide the approximate cost of the car. It can also determine the insurance cover you want to buy for the car. Check if you need to buy and additional coverages i.e. Add-ons like Accessories cover or Roadside Assistance Cover, etc.

Tip #2 Complete the Process of Transfer of Ownership

Transferring the ownership of a used car is one of the most important processes of the sale. One should ensure that documents like – proof of sale, proof of delivery, new RC book, a request from seller for cancellation/transfer of policy and your application for transfer of policy is up to date.

Tip #3 Know The Importance of IDV while Buying or Selling a Car

IDV is the abbreviation for Insured Declared Value. The IDV amount is taken into consideration while calculating the base value of your car. IDV is also the prime factor for determining the cost of a car insurance policy. Thus, knowing the IDV of a second-hand car will help the buyer to identify the cost of getting it insured.

Tip #4 Get the NCB Transferred to Your Currently Valid Car Insurance Policy

NCB is the abbreviation for No Claim Bonus. This is a discount offered by an insurance company if no claims are raised against the car insurance policy in an active policy period. This discount can reach up to 50% on car insurance premium. An insurance company offers this discount to the owner/driver of the vehicle for driving safely, thus it is possible to get the NCB transferred to the new car. This is applicable for both, buyers and sellers.

How to buy Car Insurance Online?

Buying car insurance online is as easy as ordering your favorite smartphone from an online website. All you have to do is select from either third party car insurance or comprehensive car insurance plan, enter details like the IDV, model, manufacturing year of your car, etc. and pay the car insurance premium. You will receive the soft copy of your insurance policy in your email. Print the document and always keep one copy in your car. It’s that simple!

 

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