Whether it’s brand new or second hand, a car is always precious to its owner, and no matter what, we know that you want to add an extra layer of protection in the form of an insurance policy to your car so that in case there is an accident, you aren’t forced to go beyond your financial means.
The insurance policies that are applicable for second-hand cars are known as used car insurance. The biggest benefit of getting insurance for a used car in comparison to a brand new car is that the value of a used car is much lower than a brand new car and so, the insurance policies are cheaper.
If you want to find out more about used car insurance and check out the best deals in Calgary, then you should definitely check out Surex, which is one of the leading insurance advisors in Canada.
Why Do You Need Used Car Insurance?
In most countries, getting your car insured is not an option but a compulsion. By law, you are required to get your car insured, whether it is brand new or second-hand. Apart from this, there are a couple of other reasons as well
- Just like regular auto insurance, used car insurance will help you in case your car gets into an accident
- Whether it is brand new or used, every car needs comprehensive coverage from theft, natural calamities, and animal attack. This insurance will take care of your car in case any damage is caused by the above-mentioned factors.
- Your car can be damaged at any time. You do not even have to be on the road for that. Vandalism and car damage during transit is pretty common, this insurance will cover the fixing charges in case either of the two cases happens.
Things To Know Before Getting An Used Car Insurance
You will have to get your car insured, you don’t really have a choice in that but it’s also wise to keep a few things in mind before you get started on this journey
Transfer The Policy Or Buy A New One
The first thing that you need to do is transfer the policy or buy a new one as soon as possible. Considering that the procedure for changing the policy before the tenure is over is a little complicated, (although the insurance company will do it at your request), it is better to buy a new policy.
Check The Claim History Of The Previous Owner
When buying a second-hand car, it is also important to check the claim history of the previous owner and then cross-check it with the insurance company to get complete details about the car and the insurance policy especially in case if you are planning to transfer the same policy under your name
The Premium Of A Second-Hand Car Will Be Less
The value of a second-hand car is lower than a brand new car. Naturally, the premium associated with the car will also be lower, so make sure that you know the current value of the car in the market so that the insurance company cannot fool you.
Get The Car Inspected Properly
Before buying a second-hand car, it is very important that you inspect the car properly for the previous insurance claims, its age, and the miles that have been covered by the car. This information will come in handy for you as a new owner, especially when you are dealing with the insurance company and deciding the approximate premium for your car.
Are all Auto Insurance Transferable?
When you are buying a second-hand car from someone, only the third-party portion of the insurance gets transferred to you. For the collision and comprehensive part, you will need to write an application to the insurance company and get it transferred and registered under your own name.
However, if the policy has only a few months till its expiration, it is always advised to purchase a fresh policy. This would mean you would be able to modify the terms and level of coverage provided by the policy. You could also secure a lower premium in the process.
What Is The Deadline For Getting The Insurance Policy Transferred To The New Owner
Once the documentation and inspection process is over and the car has been successfully transferred to your name, you should transfer the insurance to your name as well as soon as possible. The window for transferring the insurance to the new owner is 14 days, which means once the car has been registered under your name, you have 14 days to transfer the policy as well.
Once the period of 14 days is over, any damage caused to the car due to any reason whether it’s an accident or a natural calamity, you will not receive any coverage from the insurance company.
Is Used Car Insurance Worth It?
Apart from the fact that getting insurance for your car is absolutely mandatory under the law, used car insurance is completely worth it. This insurance policy works like any regular auto insurance under which when your car is damaged in an accident, natural calamity, animal attack, or vandalism the company will take care of the expenses of fixing it.
So you are not only adding an extra layer of protection to your car but you are also ensuring that you do not burn a hole in your pocket by trying to fix the car in case it is damaged for any reason.
So that was all about used car insurance and everything else that you need to know about it. One of the most important things when it comes to buying a second-hand car is to check the condition of the car, the previous documents, the ownership, and other important documents so that in the future you do not end up in any legal problem or face any problem with the car itself.