Few things about used car insurance
If you have finally decided to buy a used car, then be assured that you are not the only one in this endeavor. Car Insurance policies also play a crucial role in buying or selling a used car. Both buyer and the seller of the car must understand every detail of the car insurance policy, its terms, and conditions, during the time of transferring the policy, certificate of no claim bonus discounts etc. If you don't pay attention to these aspects while buying a used car then things can be really expensive and difficult for you in the future.
Here are a few things that are necessary to know regarding the insurance of a used car.
Transferring the insurance policy
First, it is important to know that the car you want to purchase has got valid insurance. Ask the previous owner to produce the insurance policy along with other required documents before purchasing the car. You can also verify if the seller has given proper information regarding insurance claims with the help of the policy.
Value of Sum insured
You will see that there will be an amount mentioned on the insurance policy which is called the sum insured. We all know that the value of a car depreciates with time. Sum insured is actually the present depreciated value of a car. When the insured value goes down, the insurance premium goes down as well. The value of sum insured actually gives you an idea regarding how much the car is worth as per its age. This would certainly help you get the car at a justified price.
So getting an insurance policy on a used car is nearly as simple as it is in case of a new car. The only difference is in a new car the entire paperwork is taken care of by the dealer while on a used car you have to deal with the processes yourself.