Smart Moves: 5 Considerations Before Buying A Used Car And Insurance Insights

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Smart Moves: 5 Considerations Before Buying A Used Car And Insurance Insights

Buying a used car can be prompted by reasons like practice driving, financial constraints, or a desire to own a vehicle. Despite the motivation, a car holds sentimental value. In the thriving used car market, caution is crucial when dealing with brokers, companies, or individual sellers.

  1. Examine The State Of The Vehicle:

Thoroughly inspect a used car for potential hidden issues. Consult a reliable mechanic to assess critical components, including the engine. Examine upholstery, electronic devices, exterior, framing, tyres, engine health, and mileage. A comprehensive test drive provides insights into performance, acceleration, suspension, and manoeuvrability.

  1. Records Of Maintenance:

Understanding the vehicle’s maintenance history is vital. Some owners maintain detailed service records, while others may rely on mental notes. Discussing the maintenance history with the seller can provide insights into the car’s care and potential future servicing needs. Verifying the service records and obtaining a verbal history can guide decisions on whether the vehicle has been well-maintained.

  1. Examine The Certificate Of Registration:

Verify the car’s registration certificate for authenticity, checking engine and chassis numbers. Detect duplicates (DRC) and ensure updates for changes in colour or engine displacement. Thoroughly examine additional paperwork: pollution certificate, road tax receipt, insurance, and the original purchase invoice.

  1. Car Insurance:

Transferring the previous online car insurance policy to the new owner is essential. Please do so to avoid legal complications in case of accidents. Verify the extent of insurance coverage and consider adding relevant car insurance add-ons during renewal. Driving without valid third-party car insurance is illegal in India, emphasising the importance of securing the minimum required third-party coverage or opting for comprehensive coverage. Claims are subject to terms and conditions set forth under the motor insurance policy. *

When renewing your car insurance, consider opting for a zero dep in car insurance to ensure comprehensive coverage without factoring in the depreciation of your vehicle’s value over time. You can use a car insurance premium calculator to estimate the costs of premiums to be paid. Claims are subject to terms and conditions set forth under the motor insurance policy. *

  1. No Claim Bonus Transfer:

No Claim Bonus (NCB) is a valuable benefit linked to the driver, not the vehicle. While it can be transferred from an owner’s previous vehicle to their current one, it cannot be transferred from a seller to a buyer. When dealing with used cars, understanding the NCB and its potential savings during comprehensive insurance renewal is crucial for sellers and buyers. * ##

Why Is It Good To Transfer Ownership Of A Car?

Ensuring the vehicle’s registration certificate includes the new owner’s information is essential. Following the established protocol by the Regional Transport Office (RTO) or relying on a broker or used-car company for ownership transfer is crucial.

Extensive Analysis:

Considering the age of the vehicle is crucial. After five years, maintenance costs may increase, and the availability of replacement parts might be a concern. Balancing the initial cost with potential long-term expenses is essential. Thorough financial planning, encompassing loans, interest rates, and repair/customisation costs, should precede finalising a used car purchase in India. A thoughtful approach, addressing aspects like vehicle condition, maintenance history, documentation, and insurance, along with long-term factors like age and financial implications, ensures informed decisions in the thriving pre-owned car market.

*Standard T&C Apply

##All savings are provided by the insurer as per the IRDAI-approved insurance plan

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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