Purchase and sell of used car is a very old and still popular trend in India. Every year, the market of used car is increasing which can be seen from the data of the year 2014 in which a used car was sold for every new car. Most of the people go for a used car to save the cost of depreciation on the new car. While opting for a used car can be an economical deal, but there are many things which you need to keep in mind before going for a used car and one such important thing is the car insurance.
What to do with Car Insurance While Buying a Used Car?
If you are buying a used car then it is important to transfer the ownership of the insurance policy within 14 days of purchase. If you miss the initial 14 days of purchase then there are chances that your claim might get rejected. According to the norms of IRDAI, no claims will be accepted by the insurance company till the registration and insurance of the vehicle come out to be in the same name and address.
What to do with Car Insurance While Selling a Used Car?
If you are selling a used car then it is important to transfer the insurance policy in the name of the buyer after the vehicle has been sold. After the policy has been transferred to the buyer, the seller should claim their certificate of no claim bonus which is a discount offered to the policyholder for making no claim in a particular policy year. The NCB certificate will be valid for three years and will give you a discount on the insurance policy bought for any car.
What is the Process of Transferring Car Insurance?
For transferring the car insurance policy, the seller has to inform the insurance company in writing and a nominal fee along with pro-rata recovery of No Claim Bonus from the date of transfer to the date of expiry of the policy is charged from the seller.
But due to wrong perception and unawareness, many policyholders face hassle at the time of claim settlement. Therefor it is important to go through the below mentioned aspects of car insurance for a hassle-free and smooth claim settlement and management of your policy
Components of Motor Insurance
Comprehensive policy or package policy which includes third party or own damage cover. You can compare various car insurance online and can choose the best one. And it is very much important to compare car insurance policies so that you can get maximum benefit from the policy in the most cost-effective way possible.
In a Third Party Car Insurance, damage to your own car is not covered while own damage covers the cost of repairing damage or replacing the vehicle.
How Sum Assured is Calculated?
The sum assured in car insurance is calculated on the basis of IDV which is based on the present value of the car and rate of depreciation. Declaring a correct IDV is very important because this will be the amount which you will be getting in case of total loss or damage of your car. Less IDV attracts less premiums.
How to Choose the Best Insurance Company?
Choosing the best car insurance company is very much important to avail maximum benefits from your car insurance policy. There are various parameters on the basis of which you can judge your car insurance company like, large network of garages, good claim settlement ratio, better service quality, etc. A good car insurance company will ease your process of buying and managing the policy and will give you an easy and quick claim settlement process.
What Affects the Premium Amount of Car Insurance?
There are various car insurance policies available in the market and the premium amount of different car insurance policy is also different. The factors which affect the premium amount of car insurance policy are as follows:-
- Your Credit score
- Your age and gender
- Your location
- Your profession
- Car manufacturer
- Age of the vehicle
- Engine capacity of the vehicle
- Your driving record
- Add on covers
- Type of insurance policy
- Deductible amount
- No claim Bonus
- Your marital status
When You Renew Your Policy
- If you make no claim, then the premium of the present year will be lesser than that of last year.
- If the policyholder earns no claim bonus, then the premium gets reduced according to the condition of the last year’s paid premium.
So understand the various aspects of car insurance before selling or buying used car so that you don’t have to face any hassle in the future. If you have any query regarding the transfer of car insurance premium while selling or buying used car, then you should get it resolved as soon as possible. Go through the above mentioned aspects of motor insurance and take advantage of your policy.