Old/Used Car Insurance

Ensure protection for your old/pre-owned vehicle. Check all the details about buying a car insurance policy for pre-owned cars.
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3 min
30-March-2024

Old car insurance, also known as used car insurance, provides essential coverage for pre-owned vehicles, safeguarding them against various risks. Whether you're purchasing or already own a second-hand car, insurance is crucial for protecting your investment and providing financial security.

What is used car insurance?

If you are buying a pre-owned car and want to buy an insurance policy to secure it from damages, accidents, theft, and other unforeseen events, you need a used car insurance policy. It works just like a standard car insurance policy and provides you with the peace of mind while owning a pre-owned car.

Why should you get a second-hand car insured?

Insuring a second-hand car is essential for several reasons, including:

  • Protecting your investment: Insurance safeguards your vehicle against potential financial losses due to accidents, theft, or damages.
  • Legal compliance: In many regions, including India, it's mandatory to have insurance coverage for all registered vehicles.
  • Peace of mind: With insurance, you can drive with confidence, knowing that you're financially protected against unexpected events.

How to transfer ownership and insurance of second-hand car?

Transferring ownership and insurance of a used car involves several steps:

  1. Obtain the necessary documents: Both the buyer and seller must provide specific documents, including the original RC book, insurance documents, and Form 29 and 30.
  2. Visit the RTO: The buyer needs to visit the Regional Transport Office (RTO) to initiate the ownership transfer process.
  3. Submit the required paperwork: Complete the necessary paperwork, including the transfer of ownership form and insurance transfer documents.
  4. Pay applicable fees: There may be fees associated with the ownership transfer, including transfer charges and road tax.
  5. Receive new documents: Once the transfer process is complete, the buyer will receive updated RC and insurance documents reflecting the change in ownership.

Documents required to transfer ownership of a used car insurance policy

When transferring ownership of a used car insurance policy, the following documents are typically required:

  • Original RC book
  • Insurance policy documents
  • Form 29 and 30 (for ownership transfer)
  • Valid ID proof of buyer and seller
  • Address proof of buyer and seller

How to buy new car insurance for second-hand car?

Purchasing insurance for a second-hand car involves the following steps:

  1. Evaluate your coverage needs: Determine the type and level of coverage required for your vehicle.
  2. Research insurance providers: Compare quotes and policies from multiple insurers to find the best coverage at a competitive price.
  3. Provide vehicle details: Provide accurate information about your car, including its make, model, year of manufacture, and usage.
  4. Choose coverage options: Select the appropriate coverage options, such as comprehensive, third-party liability, or add-on covers.
  5. Complete the application: Fill out the insurance application form and submit any required documents, such as vehicle registration details and ID proof.
  6. Make payment: Pay the insurance premium to activate your policy.

How to buy used car insurance from Bajaj Finance Insurance Mall?

Bajaj Finance Insurance Mall offers a convenient platform for you to buy or renew car insurance plans for your used car. Choose from plans offered by leading insurance partners and buy the policy in just a few clicks. Here’s how:

Step 1

Click on 'Get Quote' to open the online application form.

Step 2

Enter the vehicle type, car registration number, mobile number, and residential PIN code. Check the terms and conditions and click on the 'Get Quote' button below.

Step 3

Choose the IDV, NCB value, add-on covers, and plan type to get a list of relevant car insurance policies. You need to update your current policy expiry date here.

Step 4

Click on the ‘Buy Now’ button. You will need to add owner-driver personal accident cover mandated by the RTO. Click on ‘Next’ to proceed.

Step 5

Confirm the vehicle registration date and the previous policy type (comprehensive/third-party). Click on 'Proceed'.

Step 6

Enter the vehicle owner's name, date of birth, residential address, and contact number. Also, enter the vehicle engine and chassis number (as mentioned in RC) and previous policy details.

Step 7

Review your previously filled details and make the payment through your preferred online payment mode. You can use net banking, UPI, or credit/debit card to complete the application process.

Things to check before buying a used car in India

Before purchasing a used car, consider the following factors:

  • Vehicle history: Obtain a detailed vehicle history report to check for past accidents, damages, and ownership details.
  • Mechanical condition: Have the car inspected by a qualified mechanic to assess its mechanical condition and identify any potential issues.
  • Legal documentation: Verify that all necessary documents, including the RC book, insurance papers, and pollution certificate, are in order.
  • Ownership transfer: Ensure that the seller has cleared all outstanding dues and taxes and is willing to facilitate the ownership transfer process.

Old car insurance plays a vital role in protecting your investment and providing financial security for pre-owned vehicles. By understanding the importance of insurance, transferring ownership correctly, and purchasing the right coverage, you can ensure peace of mind while driving your second-hand car on Indian roads.

Frequently asked questions

Can I get insurance for an old car?

Yes, insurance is available for old cars, also known as used car insurance.

Which insurance is best for an old car?

The best insurance for an old car depends on factors such as coverage needs, budget, and insurer reputation. It's essential to compare policies and choose one that offers adequate protection at a competitive price.

Can a 15-year-old vehicle be insured?

Yes, some insurers may offer insurance for 15-year-old vehicles, but the coverage options and premiums may vary.

Which insurance is best for a 10-year-old car?

Similar to the previous question, the best insurance for a 10-year-old car depends on various factors. It's advisable to compare insurance policies and choose one that meets your specific needs and budget.

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Disclaimer

*T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, The New India Assurance Company Limited, Cholamandalam MS General Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.

Note – While we have made all efforts and taken utmost care in gathering precise information about the products, features, benefits, etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective product’s sales brochures before concluding their sale.