Planning a buy second-hand car is not that a difficult task. You wish to buy a second-hand car that would help you save money. Irrespective of whether you are buying or selling the car, car insurance policy is vital. It should be updated properly. Both the parties involved in buying the second-hand car should read the agreements of the policy properly. This would help them to know about what losses would be included by the insurance company. Not paying value to this can be expensive both for the buyer and seller of the car.

In this regard, the seller is responsible for checking whether the insurance policy and related papers are transferred in the name of the buyer. After the policy has been transferred, the ‘no claim bonus’ should be claimed by the seller. It is the responsibility of the insurance company to provide the seller with the claimed bonus. This is given to seller in case of a claim free year. The percentage of the claimed bonus would depend on the number of claim free years. But this bonus cannot be transferred to the new buyer of the car by the seller.

However, in this relation, you can take a chance with used Ford Endeavor for sale in Bangalore.Even for a second-hand car, the insurance policy would play an important role.

Transfer of insurance policy

For insurance transfer, the seller should inform the matter to the concerned car insurance company. It should be notified in writing. For going through the insurance policy, the insurance company will ask for nominal fees. In addition, no claim bonus will be given from the date of insurance policy to its date of expiry.

Elements of motor insurance

  • Car insurance policy includes the following items.
  • Package policy that would include third party damage problems
    Any damage in the car will be included under liability policy or third party insurance policy

Therefore, under the own damage section, coverage will be given to expense of either replacing the car or repairing the car.

Calculation of assured money

In the case of car insurance policy, estimation of assured money will depend on both actual worths of the vehicle and the insured declared value or IDV. Moreover, the IDV of the car will be calculated on the basis of the depreciation of the vehicle and its current value.

Selection of right motor insurance company

Finding the right car insurance company might seem to be a daunting task. But by following some factors, you can ease the task of getting in touch with the right company. Before finalizing the company, try to know about the good characteristics of the company. By this,you will get to know about the offers that you can avail from the insurance company. In addition, the company should have an excellent network of service centers and garage services. The garage services should be given free of cost. Moreover, you have to check whether the car insurance company has proper quick claim settlement records or not.

What factors can affect car premium

Apart from the above-mentioned factors, the premium paid to the car insurance company also plays an important role. The payable insurance amount will vary from one company to another. You should check that within the premium amount to be paid; the company should include personal accident losses, IDV estimations, discounts, and others. The information details given in the car insurance policy should be the same as the one given in the registration certificate of the car. It should also be the same as mentioned in the clearance certificate, and it would include factors like model type, fuel type, seating arrangement, and others.

In order to reduce premium value, some insurance payee tries to lower the IDV. This seems to be profitable for the insurance payee for a short period of time. When they lower IDV, it would also reduce the claim amount. Therefore, in this way, it would reduce the total amount of the car. For all insurance companies, the premium amount to be paid is almost the same.

Things to consider at the time of insurance renewal

Insurance renewal is one of the important parts that would help in the proper maintenance of car insurance policy. There are certain things that need to be considered at the time of policy renewal.

  • In case of ‘no claim’ issue, the premium amount of the current year will be less than the previous year.
  • In case the policyholder is not able to get ‘no claim bonus,’ the premium value of the car will reduce depending on the conditions of the car as has been mentioned in last year’s premium.

Therefore, the no claim bonus can be transferred in the name of the new buyer of the car within three years from the date of purchase of the car.