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- Used Car Insurance
- Need to buy used car Insurance
- Types
- Choose used/second hand car policy
- Key Features
- Used Car Insurance Premium
- Add-On Covers
- Coverages
- Used Vs New Car Insurance
- Factors
- Save Used Car Insurance Premium
- Buy Used Car Insurance
- Benefits
- Buy New Car
- Buy/Renew
- Transfer Ownership
- File a Claim
- Required to Insurance
- Download Policy
- FAQs
What is Used Car Insurance?
Used car insurance also known as pre-owned or second-hand car insurance is an essential protective measure for owners of pre-owned vehicles. It provides reassurance to used car drivers considering the purchase of a second-hand vehicle. It is important to understand the need of insuring your pre-owned vehicle, the range of insurance options available, and critical considerations in protecting your used car.
Why Do You Need To Buy Insurance for Your Used Cars?
Used car insurance is important for protecting your car and ensuring peace of mind on the road. The used car may have some wear and tear from previous ownership, or unforeseen events like accidents, thefts, or natural disasters. With the right insurance coverage, you can avoid heavy out-of-pocket expenses for repairs or replacement of spares for your used car.
What Are the Different Types of Insurance Policies for Used Cars?
The used cars insurance offers various coverage options which can be selected based on specific needs. The primary insurance types include
Third-Party insurance
Used car insurance covers property damage and any physical injury to a third party due to an accident involving the insured person’s vehicle.
Comprehensive insurance
Second-hand car insurance covers damages caused by accidents, theft, man-made and natural calamities, including third-party liability.
Own damage cover
This policy covers damage to your vehicle caused by theft, fire, collision, natural calamities
How To Choose the Right Used /Second Hand Car Insurance Policy Online?
It is mandatory to buy car insurance for a used car is to protect you from legal and financial liabilities. It is important to choose the right insurance policy for a used car.
Compare Insurance Plans
Compare insurance plans from different insurance companies and check their terms and conditions before purchasing.
Determine Car Value
Before buying a car understand the current market value of your old car to calculate the Insured Declared Value (IDV). The Insured declared value is the main factor to determine the insurance premium.
Depreciation Rate
The value of a vehicle gets depreciated with each year passing by. Thus, the depreciation value is deducted from the final claim settlement amount. So, it is better to be aware of the rate of depreciation for your car before buying an insurance policy.
Add-on Covers
Check with your insurer to see if they provide extra add-on covers such as Engine Protect, Passenger Cover, and Consumable Cover. Though the premium value will be slightly higher, it will be beneficial in the long run
Claim settlement process
Check if raising a claim process is simple and hassle-free. Make sure you choose an insurer who has an efficient claim settlement process
Transfer the policy or buy a new policy
After buying a second-hand car, you must transfer the car insurance policy within 14 days of purchase or buy a new car insurance policy as per your requirements.
Key Features of Shriram Used Car Insurance Online
Buying or renewing your car insurance policy online is made easy and simple with Shriram General Insurance’s digital platform. You can buy or renew your car insurance policy anywhere at your convenience. The key feature of Shriram’s used car insurance policy online includes the following,
- No paperwork
- Time-saving
- Reduces effort
- No claim bonus
- Avoid insurance break-ins
- Easy and quick process
Shriram Used Car Insurance Add-On Covers
Shriram General Insurance offers a variety of Car Insurance Add-ons to enhance its Comprehensive Car Insurance Plans. Notable options include
Roadside assistance cover
Roadside assistance (RSA) cover provides assistance during emergencies or breakdowns on the road. It offers services like towing, battery jump-start, fuel delivery and flat tyre assistance
Engine protection cover
The Engine Protect cover safeguards your vehicle against engine damages and breakdowns and provides protection against water ingression, lubricant leakage, and other engine-related issues.
Consumables protect cover
Consumables Protect Cover covers the expenses by covering the cost of consumable items such as engine oil, coolant, brake fluid and other components used during repairs.
Zero depreciation cover
Zero depreciation cover ensures you to receive the full claim amount without deducting for depreciation. This add-on provides comprehensive coverage, particularly beneficial for new or luxury vehicles.
Key Replacement Cover
Key Replacement Cover offers financial protection by covering the cost of replacing lost or stolen keys, including reprogramming of keys if necessary.
Shriram Second-Hand Car Insurance Policy
Shriram General Insurance offers comprehensive coverage for your second-hand cars, which includes the following,
- What is Covered?
- What is not Covered?
Third-party Liability coverage
It is mandatory by the Motor Vehicle Act of 1988. It covers damages or injuries caused to third parties or their property, whichinvolve your vehicle during an accident.
Own Damage Coverage
It protects your vehicle against damage caused by accidents, thefts, man-made and natural calamities like floods, earthquakes and fire.
Personal Accident Cover
Personal accident cover provides financial assistance in case of accidental death or disability of the owner-driver of the insured vehicle.
Add-on covers
Optional add-ons include zero depreciation cover, roadside assistance, engine protection cover, consumables protection cover and key replacement cover.
Accidents due to external factor
It is mandatory by the Motor Vehicle Act of 1988. It covers damages or injuries caused to third parties or their property, whichinvolve your vehicle during an accident.
Other accidental loss
Consequential loss, depreciation, wear and tear, mechanical and electrical breakdown or any sort of breakage will not be covered.
Extended territory and invalid license
Loss or liability incurred when the vehicle is operated beyond its designated usage limits or driven by an unlicensed individual.
Policy Deductibles
Policy deductibles, as per IRDAI regulations, represent a mandatory amount that the insured party is required to contribute towards their claim. These deductibles are not included in the coverage provided by Shriram Car Insurance policy.
Used Car Vs New Car Insurance
| Parameter | Used Car Insurance | New Car Insurance |
|---|---|---|
| Cost | Usually cheap due to lower vehicle value | Often more expensive due to higher vehicle value |
| Depreciation Value | Higher | Lower |
| Coverage options | Similar option available | Similar option available |
| Condition and History of the vehicle | May influence the rate | May affect premium |
| No claim Bonus | NCB cannot be availed for first time buyers | NCB can be availed during renewal to reduce the premium |
How Should You Buy Used Car Insurance Online?
Benefits of Buying Shriram Used Car Insurance
How to Buy New Car Insurance for Your Second-Hand Car?
If your second-hand car does not come with a car insurance policy, then it is mandatory to get a new insurance policy, to avoid financial liability and ensure peace of mind. It is advisable to get a Comprehensive insurance policy to get maximum coverage for your used car.
Before buying a new insurance policy for your used car:
- Start to research different insurance providers to find maximum coverage at a reasonable premium value.
- Gather necessary documents, such as the car's registration certificate.
- Digitalize through website for quotes and compare policies to ensure you get the right coverage for your needs.
- Once you select a policy, provide the required information and make payment to activate your insurance.
- Review the policy details carefully and keep your insurance documents handy for future reference.
How to Buy/Renew Used Car Insurance Policy Online?
Renew your Used car insurance to ensure continuous protection of your vehicle. Begin by carefully reviewing your policy details and verifying any eligible No claim bonus (NCB) in the renewal premium. Many insurers provide convenient online renewal services. Access the renewal section on the website, provide your vehicle details and use the premium calculator for accurate renewal premium estimation. Complete the process by making the renewal premium payment through the online payment gateway, thus renewing your car insurance policy for a Used car.
How to Transfer Ownership and Insurance of Second-hand Car?
When you buy a used car, it is essential to transfer the car insurance policy to ensure your car insurance coverage aligns with the new owner. The process is simple by notifying your insurance provider about the change in ownership. The insurance provider will guide you through the necessary documents to initiate the transfer of policy. Additionally, the new owner has to submit few identification documents to confirm the transition. With these few steps you can confirm that the insurance coverage aligns with your ownership of the used car.
How do you raise/file a car insurance claim for Used Cars?
Filing a car insurance claim for your Used car is now simple by following these steps.
Contact your Insurance Provider
Reach out to your insurance company after an incident.
Provide Information and documentation
Share all the details about the incident and submit the supporting documents like photos and receipts.
Complete Claim Form
Fill out the provided claim form to start the assessment process.
Assessment by Insurance Representative
An insurance representative will assess your claim
Claim settlement
Once assessed, your claim will be resolved and eligible settlements will be made.
Documents Required to Transfer a Used Car Insurance Policy
The necessary documents are required to transfer ownership of a pre-owned vehicle along with its insurance policy.
- The vehicle's registration certificate (RC)
- Identification papers of both the previous and new owners
- A duplicate copy of the sales agreement
- Copy of the current insurance policy papers
How to Download Your Used Car Insurance Policy Copy?
Step 01
Visit the SGI website /MYSGI App home page and scroll to the top to access your Shriram Car Insurance account.
Step 02
Enter your car insurance policy and click "Download" to get your policy document.
Shriram Car Insurance in Major Cities in India
Delhi
Chennai
Mumbai
Ahmedabad
Gurgaon
Bangalore
Agra
Bhopal
Pune
Indore
Jaipur
Dehradun
Shriram Car Insurance for Popular Car Brands
Road Tax by States
- Road Tax for Delhi - 4-12.50%
- Road Tax for Tamil Nadu - 12-20%
- Road Tax for Haryana - 4-10%
- Road Tax for Maharashtra - 7-14%
- Road Tax for AP - 12-14%
- Road Tax for Kerala - 7-17%
- Road Tax for Karnataka - 13-18%
- Road Tax for Punjab - 6-8%
- Road Tax for Gujarat - 6%
- Road Tax for Rajasthan - 5-10%
- Road Tax for Uttarakhand - 4-5%
- Road Tax for Uttar Pradesh - 7%
Frequently Asked Questions
What is used car insurance?
Used car insurance provides coverage for pre-owned vehicles against various risks such as accidents, theft, damage, and third-party liabilities.
Do I need insurance for a used car?
Yes, insurance is mandatory for all vehicles, including used cars, as per the Motor Vehicles Act. It provides financial protection against unforeseen events and legal liabilities.
How is the premium for used car insurance calculated?
The premium for used car insurance is calculated based on factors such as the age and make of the vehicle, its market value, the insured declared value (IDV), the location, and the coverage options selected.
Can I transfer the existing insurance policy to my name when buying a used car?
Yes, you can transfer the existing insurance policy to your name when buying a used car. You need to submit the necessary documents and pay a nominal transfer fee to the insurance company.
What are the types of coverage available for used car insurance?
The types of coverage available for used car insurance include third-party liability insurance, comprehensive insurance, which covers own damage as well as third-party liabilities, and various add-on covers for enhanced protection.
Can I get a no-claim bonus (NCB) on my used car insurance policy?
Yes, if you haven't made any claims during the previous policy period, you are eligible for a no-claim bonus (NCB). This can be transferred from your previous policy to your new used car insurance policy.
What documents are required to purchase used car insurance?
The documents required to purchase used car insurance include vehicle details, registration certificate (RC), previous insurance details, seller's and buyer's identity proofs, vehicle inspection report (if necessary), and payment details.
How can I renew my used car insurance policy?
You can renew your used car insurance policy online through the insurance company's website. Alternatively, you can visit the nearest branch office or contact the customer service helpline for assistance.
Can I customise my used car insurance policy with additional coverage?
Yes, you can customise your used car insurance policy by adding optional add-on covers such as zero depreciation cover, roadside assistance, engine protection cover, consumables protection cover, etc., for enhanced protection.
What should I do in case of an accident or claim with my used car insurance?
In case of an accident or claim, immediately inform your insurance company and file a claim online or through their customer service helpline. Provide all necessary details and documents to support your claim and follow the instructions given by the insurer.
