In the present day and age, insurance holds great importance as it offers financial support in the time of need. People are increasingly inclined to buy insurance for every possible thing. The trend is no different in the case of cars. Your car is one of the biggest assets you earn and is much closer to your heart as you create and cherish numerous memories with it. Even if it is a second-hand car, it has an important place in your life. Car insurance helps you to deal with financial crises that might occur if your car meets an accident and gets or causes damage. It takes away a lot of mental and financial hassle in such cases and saves you money and time. You can get car insurance services in Australia by looking around the market or searching the Internet. You can find online portals which help you compare and buy the right insurance plans. Buying insurance is already a task that people are not very confident of, when it comes to buying it for your used car, several apprehensions cloud your vision and blur your decision. Here we provide the necessary information that you need to make the call.
Why you should buy insurance for a second-hand car
The most straightforward reason is that driving uninsured cars in many states and countries is legally not allowed. You need to have insurance even if you are on the road with your used car. You can buy comprehensive or third party insurance based on your choice and needs. Third-party insurance will provide lesser cover for the insured vehicle but can give you protection to a certain extent and make your driving legal. Choose comprehensive insurance for wider coverage. Whenever you buy a car, be it second hand, it is susceptible to several risks and threats which can be covered under insurance.
Third-party risks
If you meet an unfortunate accident and injure somebody or cause damage to somebody’s property, you have to bear the cost of treatment or repair. It may also lend you in legal troubles.
Theft
Many people do not have a car shed in their houses and park their vehicles on street sides. These vehicles are an open invitation to the thieves. Having insurance with proper insured declared value can save you a big amount.
Many people do not have a car shed in their houses and park their vehicles on street sides. These vehicles are an open invitation to the thieves. Having insurance with proper insured declared value can save you a big amount.
Natural threats
Insurance can also help you in case of damages because of natural calamities like floods, storms, hurricanes, etc.
Man-made threats
You also get protection if there is any damage to your used car due to man-made calamities like vandalism, fire, etc.
Things to keep in mind while getting insurance for a used car
Insurance for a second-hand car comes at the time of the purchase of the car. Here are a few things you need to bear in mind.
Policy transfer
When you buy a used car, the ownership of the car should also be transferred to your name. This process includes the transfer of insurance in your name. Make sure that you get the insurance transferred. Mostly, insurers do not allow you to change plans or features during transfer. However, it differs for different providers and you can take a chance and request the insurer about it.
Claim history
The seller would give you the claim history of the car which tells you about the vehicle’s condition and benefits of insurance you can avail. However, check these details with the insurer before closing the deal.
