5 Factors You Should Consider While Buying Insurance For A Second-Hand Car

With more cars entering the market, people are always looking for a change and are looking to upgrade their cars. It is one of the major reasons people are more inclined to go for second-hand cars rather than brand-new ones. Since there is a demand for second-hand cars, there are many facilities that are easily available that revolve around buying and selling a second-hand car. One of the things that have become relatively easier is purchasing second-hand car insurance, which can be done online. 

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Getting second-hand car insurance is just as important as insuring your new car. Either way, the primary goal is to protect your assets and ensure you do not get caught up in a financial liability that dents your savings. Another reason why it is essential to invest in second-hand car insurance is to stay on the right side of the law. 

If you have insurance, then you can get damages repaired without much fuss and with very little to no payment from your pocket. This is why picking the correct insurance for your second-hand car is extremely important. Here are the factors you should definitely consider while deciding. 

Things to look for while buying insurance for a second-hand car

1. Look for Relevant Add-Ons – It is not enough to just buy the insurance and let it get renewed. You can customize the policy according to your wants and needs and make the best use of the policy you are buying. If you are picking comprehensive insurance, you get the option to buy add-ons and make your policy more robust. Check which add-ons are in your favour, and you may need them. Here are some add-ons that you can benefit from while buying second-hand car insurance.

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• Zero depreciation cover – If you are planning to use a secondhand car, then it has already seen some wear and tear, and there will probably be more. To avoid paying for the depreciation difference from your pocket when a part needs to be replaced, buy this add-on and become stress-free. 
• Roadside assistance – If you are an adventurer and like to go on long drives, this cover is a must. Use it to get roadside assistance in case your car breaks down. 
• Passenger cover – This cover is essential whether your car is new or secondhand. It ensures all the passengers in the car are covered under insurance in case of an accident. 
• Return to Invoice – When your car is damaged beyond repair, the insurance company will compensate the amount mentioned in the invoice. 

2. Check the Insurer’s Reputation & Claim Settlement Ratio – When you are searching for insurers online, remember to look at the ones suggested by friends and family first. If they have a good reputation, then their credibility instantly increases. Read the reviews and ratings online to check their authenticity. You can gauge how happy the customers are by reading the comments online. Looking at the claim settlement ratio is a must. It gives you an idea of how many per cent of claims have been processed out of the total ones received. The claim settlement ratio indicates how sincerely the cases are considered and how minutely they are evaluated. 

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3. Understand the Inclusions & Exclusions – When you are buying an insurance policy, it is essential to know what you are paying for. It is equally important to know what is not included in your package. The exclusions are important as you may get a rude shock when you apply for a claim and it gets rejected due to the exclusions. Most people look at the inclusions and assume they are applicable in all scenarios. Read the fine print and understand the exceptions as well. 

4. Focus on the Coverage – A lot of times, when you are trying to save money, you get stuck on the premium and forget to look at the coverage. However, the right way is to look at coverage and premium. For example, if you want a low premium, then you can go for third party insurance for car, but the catch is your car will not be covered. It only covers the damages caused to the third party in a collision. 

So, in case, there is an accident, you will have to pay for damages to your car out of your pocket. On the other hand, if you go for comprehensive insurance, the premium is bound to be more, but the coverage is much better, and you can even buy add-ons to improve the policy. 

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5. Look for Policies with Affordable Premiums – When you look at comprehensive insurance policies, there are various levels and packages that you can buy. You may not need the best package in the market, but you can definitely choose the one that ensures you are not caught off-guard in a commonly occurring situation like a damaged part. Suppose you want to make the premium affordable further. In that case, you can adjust the voluntary deductibles and choose to keep the option open for paying from your pocket whenever you are filing a claim. 

These important factors should be considered seriously while buying second-hand car insurance. Whether a brand-new or a second-hand car, it is still your pride and a product of your hard-earned money. By using this guide, you will be protecting your asset to the best of your ability. 

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