Importance of Buying Car Insurance for Your Second-Hand Car

blog-img

27 Jul 2023

A car is considered to be an important asset one can own, be it new or second hand.

A car is considered to be an important asset one can own, be it new or second hand. The second-hand car market in India has seen exponential growth over time. We keep several factors in mind while purchasing a second-hand car, and buying a car insurance policy for it should also be a significant factor to consider. Second-hand car insurance holds equal importance as compared to the insurance of brand-new cars. The idea and purpose behind it are the same, to secure your asset from any unforeseen accident.

According to the Motor Vehicles Act 2019, driving any vehicle, New or Second-hand, without at least third-party insurance is illegal. Apart from the legal mandate, having a car insurance policy is also vital to secure yourself from possible mishaps.

Let us take a look at why is it important to buy car insurance for your second-hand car?

• PROTECTION AGAINST RISKS:

A comprehensive car insurance policy acts the same way for used cars as it does for new cars. Hence, when you buy a second-hand car, you should get it insured to protect it from all kinds of risks and troubles, such as damages from accidents, natural and man-made calamities, theft, or repairs etc. It does not cancel the chance of a mishap, but you will have a safety shield to cover the expenses you may incur afterwards.

• THIRD-PARTY RISKS:

If your car meets with an accident and damages the third-party vehicle, you are liable to pay for the cost of repairing damage and/or paying for injuries out of your pocket unless you have a valid third-party car insurance policy. With third-party car insurance or a comprehensive insurance policy, the insurer will take care of the expenses you owe to a third party as per the policy terms.

• NATURAL CALAMITIES:

A comprehensive car insurance policy will safeguard your car and cover any damage caused to the car by natural disasters like earthquakes, storms, floods, volcanic eruptions etc.

• SECURITY AGAINST THEFT:

Car theft is a frequently seen crime everywhere. Car insurance is the solution to protect yourself from this crime. Your insurer will compensate you for the car's value in case of theft, according to the Insured Declared Value (IDV) fixed at the time of policy purchase.

• PROTECTION FROM MAN-MADE CALAMITIES:

These include riots, vandalism, fires, etc. Similar to natural calamities, man-made disasters can put a car in an unusable state.

• USEFUL ADD-ONS AND BENEFITS:

Car Insurance policies comprise of many useful add-ons and benefits; it is crucial to look out for them with the right insurance company. Right add-on covers may provide extra service and benefits in case of emergencies. One of the benefits is No Claim Bonus (NCB), which is the insurer's reward to the policyholder, for not making any claim during the policy year, may prove to be beneficial for the car owner. Some useful car insurance add-on covers are Engine Protection Cover, Roadside Assistance Cover, Passenger Cover, Consumables Cover, Return to Invoice Cover etc.

To sum it up, the above factors will tell you how significant it is to buy car insurance for your second-hand car. It provides financial security against the expenses you may incur due to an unexpected car accident. It is also mandatory to have a valid third-party car insurance policy to drive your car on Indian roads.

Waste no time and ensure a protective cover for your car, brand new or second-hand and invest in a car insurance policy with Kotak General Insurance.


author-img
Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.