Why is it necessary to secure your used car?

Why is it necessary to secure your used car?

Buying insurance helps avoid a financial crisis that can arise due to car damage. You must buy insurance even if your car is used. Read this article to find out why it is necessary to secure used cars.

Car insurance is the kind of financial protection you can get to protect yourself in the event of an accident related to your car. Property damage, injuries and even deaths may occur as a result of these incidents. Accidents can lead not only to physical harm and injuries but also legal action against car owners.

Depending on the policy coverage, there are two types of car insurance: third-party obligations and comprehensive car insurance. Car insurance may be purchased in a variety of ways, you can buy car insurance either online or offline. Currently purchasing vehicle insurance requires visiting the insurance provider in person or purchasing coverage through an agent or car dealer.

Why is it necessary to secure your used car?

Driving an uninsured car is illegal. The Automobile Act 1988 provides for the purchase of at least a third-party liability policy. However, compared to a comprehensive insurance policy on vehicles, it gives less coverage. Third-party liability insurance does not cover any damage to the insured vehicle. Choose a comprehensive vehicle insurance policy to ensure you get the most out of your car insurance policy.

If you have purchased a used car without comprehensive car insurance, you may be at the following risks:

1. Third-party risk: If you are causing any kind of damage to a third party, you are responsible for the cost of restoring the damage or compensating the injured person. Your insurance company will cover all third-party risks if you have car insurance.

2. Car theft insured: Car theft is one of the most well-known crimes. Car insurance is the best way to protect yourself from this type of crime. When purchasing insurance, be careful to provide the accurately insured declared value (IDV) so that you get the correct coverage from your insurance company in the event of theft.

3. Natural disasters: Natural disasters such as floods, earthquakes, landslides and rock slides often occur. They are unexpected and can cause irreparable damage to a car.

4. Man-made disasters: Disasters such as riots, vandalism and fires can also cause damage to your car.

Things to consider when buying a used car

When getting used car insurance, there are a few things to keep in mind. First of all, when purchasing a used car, you should make sure that ownership of the car is also transferred to your name. Here are some things to keep in mind if you're buying a used car:

1. Get an insurance transfer policy

Used car insurance must be transferred to the new owner's name. In most cases, changing the type and characteristics of vehicle insurance before the policy period expires is not possible. However, upon request, the insurance company may give the option of consent.

2. Check the date of the claim

If you buy a used car, it's a good idea to check the claim date with insurance to check the information provided by the previous owner. To learn more about the date of the vehicle's claim, contact the insurance provider and provide the policy number.

Take away

It is important to secure a used car in order to protect it from the many risks posed by uninsured vehicles. In addition to cash protection, car insurance also guarantees legal aid.

You may also want to read: 

Tips for maintaining road safety while driving

Reasons why car insurance companies can reject your claims

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.