By Chola MS
A common myth about owning second-hand cars is that you don’t have to insure them. Many new car owners are moving towards second-hand cars for lower costs. What they are not thinking about is the need to ensure this car just like any other valuable asset they own. This oversight seems to stem from the cost of the car insurance and the fact that they are unable to see a visible result from the coverage. Many still also forget that motor insurance is not mandatory just for new cars but for all cars plying our roads.
Second-hand car insurance functions similarly to regular car insurance where its primary function is to guard the asset against any danger and take care of unforeseeable risks. Like a regular car-insurance, comprehensive second-hand car insurance also provides financial protection from third-party liability.
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Here’s a list of detailed reasons as to why it’s important to get your second-hand car insured –
- In order to be a law-abiding citizen – As per Indian Motor Vehicle Laws, all cars (second-hand cars included) should be covered under a valid Insurance policy. Driving an uninsured car will invite fines and in some cases imprisonment along with a heavy financial penalty.
2. Protection from Risks – A comprehensive second-hand car insurance allows the car to be protected from natural calamities (fire, floods, earthquakes, etc.), manmade hazards, danger, and negligence. This also safeguards the insurer from a financial crunch in times of distress.
3. Protection from Theft – With a rising rate of car theft, it would be foolhardy not to protect yourself. In case of a theft, the insuree will be able to avail the declared value from the insurer which in turn protects from financial loss.
4. Third-party protection– In an unfortunate situation, if any third-party suffers damage because of your second-hand car, as an owner you are liable to pay for those damages. With insurance, you’re protected in every situation and the damage is taken care of.
5. Personal protection – Your car insurance will protect the car and yourself too! Second-hand car insurance shields the owner from the treatment expenses in case of an accident.
Insurance policies allow us to live easily, with more security and less worry. Remember, the protection of assets is as important as the asset itself.
As a second-hand car owner, there are few more things you should remember when insuring your car –
- If there is an existing insurance policy at the time of purchase, make sure to transfer the ownership of the Insurance policy in your name while transferring car ownership;
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2. In case the existing insurance policy expires, it’s necessary to get it renewed at the time of purchase.
In addition to this, do ensure to check all the available policies in the market and the benefits that can be availed. Some insurance companies provide full coverage on second-hand cars while other policies may not.
(Disclaimer: The article is sponsored and hence promotes some commercial links.)