Buying a second hand car has its own benefits. You can aquire a car within your budget as well as test out your ability to drive having a car or truck. Moreover, if you are looking to own a premium or a luxury car and not want to invest a great deal of profit exactly the same, you are able to possess a car or truck.

When you purchase a second hand car, you also have to obtain the car covered under a valid insurance plan. The Motor Vehicles Act, 1988 mandates a liability only used car insurance plan around the car prior to taking it out for a ride. So, let’s comprehend the policy in details –

What is a used car insurance plan?

A used car insurance plan is coverage that's allowed on used cars. The insurance policy comes in two variants of 3rd party liability only cover and comprehensive package cover. You can go for these second handcar insurance coverage when purchasing a used car.

Why in the event you opt for second hand car insurance?

You need a car or truck insurance plan because of the following reasons –

  1. Legally mandatory 

    Third-party coverage is legally mandatory. So, you need a minimum of a third party cover on the car before you drive it. If you are caught without a valid cover, you would suffer considerable fines and even imprisonment in severe cases.

  2. Comprehensive coverage 

    If you invest in a comprehensive old car insurance, you will get coverage for that damages suffered by your car. These damages might arise from natural or man-made calamities and can incur considerable repairs. Underneath the comprehensive policy, however, the repairs would be paid through the insurance provider removing an enormous financial burden out of your shoulders.

  3. Financial security 

    The third-party coverage provides financial protection against legal liabilities against third parties if your car causes them any harm. These liabilities could be considerable, especially in the case from the death of a third party. Even without the a second hand car insurance policy, the liabilities may cause a financial strain on you.

  4. Security in case of thefts

    If your car is stolen, you would get a lump sum payment claim underneath the car or truck insurance plan. This would provide you with the financial means to switch the stolen car easily.

  5. Easy claim settlements

    You can also enjoy cashless repairs at networked garages under comprehensive used auto insurance plans. This allows you to get the car repaired with no financial hassles.

So, for fulfilling the legal mandate and to enjoy financial security, a used car insurance becomes a must.

Transfer of car ownership and insurance

When purchasing a used car, there are two steps that you need to follow. The first is to transfer the ownership of the car in the previous owner for your name. The second reason is to transfer the insurance policy in the last owner’s name to your name. Here’s the best way to go about these two steps –

  1. Transferring car ownership

    The very first thing to complete is to transfer the ownership of the car before you can obtain a change in insurance. The ownership from the car can be transferred through the following steps –

    • You would have to inform the RTO from the alternation in ownership so that the RC book of the car is duly updated using the new buyer’s details.
    • To inform the RTO and apply for a big change of ownership, you would have to fill and submit three RTO forms. These forms are as follows –
      1. Form 28 is the form for the No Objection Certificate
      2. Form 29 may be the form for transfer of ownership
      3. Form 30 which is an intimation for transfer of the car

      Both the seller and also the buyer of the used car would have to sign these RTO forms before they are submitted to the RTO.

    • You would also need to pay a fee for that transfer of ownership in the RC book. This fee would depend around the RTO where the car is registered. 
    • Other documents would be also required to complete the change in ownership. These documents should be that come with the RTO forms and listed in the RTO. The documents are listed below;
      1. Registration certificate
      2. PUC certificate
      3. Tax certificate for the road tax paid around the car
      4. A declaration through the car owner proclaiming that he/she intends to sell the car
      5. Copy of the insurance policy
      6. An affidavit stating the change in ownership from the car
      7. Address evidence of the vehicle buyer

      Once the documents are submitted and also the application is made, the RTO would change the ownership and issue an up-to-date RC Book for the car.

  2. Transfer of insurance

    Once the ownership is transferred, you can transfer the insurance plan from the seller’s name towards the buyer’s name. Here’s the process –

    • The seller needs to inform the insurer of the change in ownership from the car. This information should be given in writing.
    • If the vendor has any No Claim Bonus to his name, the insurer would issue an NCB certificate to the seller before transferring the insurance policy
    • You would need to submit some documents to transfer the policy. These documents include the following –
      1. The updated RC book. If the RC book is incorporated in the procedure for being updated, you can also submit Form 29
      2. NOC from the seller
      3. Existing policy bond
      4. New proposal form for insurance
      5. Vehicle inspection report
      6. The difference premium payable

    Once the applying is submitted combined with the documents, the insurance policy would be transferred within the name from the new buyer.

Buying new car insurance for any used car

Rather than getting the ownership transferred in the existing policy, you may also opt for a new car insurance policy. To do this, you can purchase the policy online or offline. For buying offline, you would need to make contact with an insurance agent or perhaps a broker. Alternatively, you can go to the branch of the insurance provider and apply for a new policy.

The online mode, however, is less difficult. You can just visit the website of the insurance provider or an insurance aggregator and buy a new used car insurance plan. Provide the information on the car and the premium would be shown. Compare the premium and the coverage benefits and purchase the very best used car insurance policy.

Why choose Turtlemint for used car insurance?

Turtlemint is definitely an online platform that allows you to buy an old car insurance online without hassles. The reasons why Turtlemint could possibly be the best mode of buying a car insurance policy are as follows –

  1. You can buy the policy instantly online by following a simple process
  2. Turtlemint is tied up with the leading car insurance providers of India. You can, thus, get the best coverage benefits through Turtlemint’s portal.
  3. Turtelmint enables you to compare and choose the most appropriate car or truck insurance policy that provides probably the most comprehensive coverage benefits at the smallest car or truck insurance prices
  4. At time of claim, Turtlemint gives you complete help get your claims settled quickly and easily.

So, visit https://www.turtlemint.com/car-insurance/ and purchase the very best used car insurance plan.

Things to check before buying a second-hand car

If you are thinking of buying a second-hand car for your requirements, here are some things that you can examine –

  • Check using the car. Buy a car which has useful life left. Try to avoid very old cars his or her maintenance costs could be high
  • Opt for a model that matches your budget
  • Do an intensive inspection from the car to find if it's damaged anywhere and also to assess its present condition
  • Try and buy a second-hand car from reputed dealers, online or offline
  • Make sure the ownership is successfully transferred after buying the car

Do your quest and select the best car. Don’t forget to add the car or truck insurance policy whenever you purchase a second-hand car.

Frequently Asked Questions

  1. Within what duration must i get the insurance plan transferred once i purchase a used car?

    The change in the insurance policy should be done within Fourteen days in the date of sale from the car. During this time period, the third party cover would still apply. However, if the tenure of Fourteen days expires, the third-party coverage would cease.

  2. Where can I obtain the RTO forms for alternation in ownership?

    RTO forms obtainable online from the Parivahan website. The hyperlink is https://parivahan.gov.in/parivahan//en/content/download-forms. You can also obtain the forms in the RTO itself. 

  3. Can I opt for only 3rd party cover on the second-hand car?

    Yes, you are able to go for only 3rd party cover which is mandatory. However, if you do so, any damages suffered by your car would not be covered. Moreover, if your car is stolen, you'd incur a considerable loss. So, it is usually better to opt for a comprehensive policy.

  4. Would the used car insurance policy cover all types of damages?

    A comprehensive car or truck insurance policy covers most kinds of damages. However, there's a list of policy exclusions that you should check. This list states the damages which aren't covered by the policy.

  5. What add-ons can be found under comprehensive old car insurance plans?

    A selection of add-ons can be obtained under comprehensive old auto insurance plans. Some common ones include zero depreciation cover , roadside assistance cover, engine protection cover, NCB protection cover, etc.

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