Wednesday, May 18, 2022
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Role of Insurance In Buying or Selling a Used Car

Are you thinking of having a car, but unable to get your choice of the car within a budget? You can consider getting a used car instead of buying a new one.

Cars have emerged as a popular mode of commuting; buying a used one has become a rage now. However, when it comes to selling or buying a used car, one of the major elements to consider is the car insurance. There are many aspects related to the motor insurance such as policy terms, and policy transfer to consider.

The understanding of some nuances could prove to be extremely beneficial for both the seller and buyer of a used car.

In this short post, let’s understand some listed insurance elements during the selling and buying of a used car.

Things to know about the transfer of motor insurance

  1. Transferring the policy ownership

If you are a seller, ensure to double check if the policy has been transferred in the buyer’s forum. Ensure to obtain the no claim bonus certificate instantly after the transfer of the policy. If you are a buyer, the insurance policy ownership should be transferred into your name within 2 weeks of the vehicle purchase. Post two weeks, there is a high chance that a claim could stand to be rejected.

  1. Know about the no claim bonus (NBC)

The no claim bonus or the NBC is the bonus that a policyholder enjoys after the passage of such a policy via a claim free year. The advantage of the no claim bonus could be anything 20% to 50%, depending upon a number of claim-free years. Yes, you may transfer the policy, but the NBC can’t be transferred to any other name. You can claim the no claim bonus only within the first three years of purchasing a policy. The NBC can be transferred to another insurance company. It can only be done when an owner of the used car switches the insurer.

Motor insurance

  1. Always select a reliable motor insurance policy

Finding a trustworthy and steady insurance company is one of the major elements of buying 4 wheeler insurance. The insurance provider that you seek to subscribe to must have a vast network of service stations and garages offering cashless services. Also, the insurer should also have a decent and fast turnaround for claim settlement.

  1. Four wheeler insurance renewal

If you have not made any claims, you can enjoy the benefit of paying lesser premiums each year during the renewal. If you have not earned any NBC, the four wheeler insurance renewal premium will keep reducing. The other conditions for the premium will remain the same.

The Bottom Line

If you can keep the discussed aspects in mind while buying a used car, it will assist you to keep off all sudden surprises while going for a claim. Bajaj four wheeler insurance policy is one of the major car insurance service providers offering many services at lower premiums.

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