Insurance tips for buying or selling a used car
In an age where newer, bigger and smarter is better, we can never settle for what we have. It’s always about the next big thing and automobiles are no different. Those who wish to buy a new vehicle end up selling their used vehicle which others who simply want to get from point A to B end up buying for a competitive price that is far lesser than the market rate of the car. This is a win-win situation for both parties and so it’s no surprise that the used car market is booming.
Where there is money, the shifters and scammers are not too far away. Most people who are out to sell their cars aim to do so honourably but the used car market also has many sketchy people in the mix. Therefore, it becomes important to exercise due diligence while buying and selling used cars. Also, people are of the misconception that once the payment is made and the keys to the vehicle are handed over, the transaction is complete. There are several crucial things like car insurance for the used car that need attention. Let us go over a few pointers for sellers and buyers of used cars.
Pointers for buyers
Assess and ascertain the condition of the car with the help of a trusted mechanic.
Request and inspect the validity of documents like RC book, original voice, previous insurance policy, NOC from loan providers and road tax receipts.
With regard to insurance, check the used car’s insured value. Also, cross-check this with the used car insurance premium calculator that you can find on HDFC ERGO’s webpage.
Take a look at the NCB history or claim history of the car to get an idea of its condition. For instance, a car which has seen many claims must have gone through some significant damage and consequent repair resulting in an overall reduction of product life.
Ensure that the previous insurance policy is transferred to you through the car insurance name transfer procedure in all relevant documents. Alternatively, you can purchase used car insurance online for the vehicle within 14 days.
To ensure completion of transaction, ensure the availability and validity of the following documents – proof of sale, proof of delivery, new RC book issued in your name, request from seller for cancellation/transfer of policy and your application for transfer of policy.
Pointers for Sellers
Ensure that the car is in ready-to-drive condition and take photographs for records.
If your car is insured for a period beyond the sale of the vehicle, you can get a proportion (for the period the buyer will enjoy the benefit of coverage) of the premium during vehicle insurance transfer from the buyer.
Ensure that you retain the NCB that you have accrued on this vehicle by producing the original policy letter, certificate of insurance and application for retention of NCB. This is keeping in view that NCB discounts are for drivers and not for cars.
Make sure you take the steps mentioned above while buying or selling a used car so that you do not get duped in the process.