What to note in Insurance while buying or selling a used car?
A reason behind purchasing a used car is that modern cars are made with high durability, which is why purchasing one could be a smart choice. Thus, buying a pre-owned car may require a little bit of homework from your side.
Purchasing/Selling any second-hand car requires one to make note of the following things:
Evaluate the condition of the car as a buyer:
This is certainly a vital step to know whether the car you are interested in is worth buying or not. For this, you can take it for a spin outside and test its engine’s workability, transmission, etc. This will help in evaluating all the key attributes of the car and get a good idea of its overall maintenance.
Do note that when you are going to see the car at the seller’s garage, make sure you keep a note of every visible component on the car. This is important as sellers sometimes show you something and then later replace parts with other cheaper ones without your awareness. To have a better chance of avoiding exploitation, click some pictures of the car you are looking forward to purchase.
Make sure to have a written agreement as a seller:
Finalizing a deal for selling your used car should not just be based on a verbal conversation. You need to have proper papers prepared for the agreement to finalize for transferring ownership to the buyer. This ensures that everything is carried under legal measures.
Keep track of all your car expense records as a seller:
Any maintenance and expenses that have been implemented on your car should be properly stored so that on selling it you can show it to the buyer and get a better price on it. Such records will support all your claims that the vehicle you are selling has been well-maintained.
Check for the registration papers as a buyer:
Getting a used car may require you to be extra careful about the paperwork related to it. In India, there are chances that the seller is selling a car to you that may not even belong to him/her. Who knows that the car might be a stolen property? So, to avoid any such mishaps, carefully check the registration documents and learn about the authentic owner of the car before buying it.
Also, check if the invoice and RC and other papers are all original copies. Once you have seen them all, you and the previous owner will have to do some signature work to transfer the authority of the car to its new owner.
Track the Car Insurance papers as a buyer:
Just like the car ownership documents, car’s insurance papers are also of vital importance to learn about various parameters such as NCB claims, premium rates, and dues, etc. This will give you and your car insurer a better idea at evaluating the premium rates for a new auto insurance policy under your name. Also, make sure that you buy a new policy as soon as possible after purchasing the used car to start with your claim benefits.
Stay protected, save big
With these tips, you can be better guided on how to save via insurance on your used car purchase. Take note of these things and make sure to carry out these steps before you make the payment on your pre-owned car.