The Importance of Insurance in Buying a Used Car

The Importance of Insurance in Buying a Used Car

If you are on the lookout for a used car, then you are not the only one in this league. Purchasing a used car is becoming a favorite choice for many people in order to save money while getting a good deal on whatever they spend. Insurance plays a major role in buying or selling a used car. Both seller and buyer need to understand the insurance policy of the car, the different terms and conditions, retaining the no-claim bonus discount, if applicable etc. Not paying enough attention to these can lead to a cumbersome experience when transferring ownership of the car.

Used car dealers make this process much easier for you. Searching for Used cars in Carrollton if you are from this area will fetch you a list of reputed dealers.

  • Policy Transfer

The buyer needs to ensure that the policy is transferred in his/her name by the seller. The seller can claim the No-Claim bonus from the insurance company if this is applicable. The bonus can also be transferred when the buyer assumes ownership of the policy. The presence of a no-claim bonus in the policy is also an indicator, although not absolute, that the car hasn’t undergone any substantial repairs during the initial ownership period.

Used cars in Carrollton

  • Components of Insurance

A motor insurance policy mainly comprises of two types:

  1. Comprehensive policy that also includes third party damage cover and own damage cover. This is usually more expensive than the type listed below.
  2. Liability only policy or third party motor insurance – In this case the policy will not cover damage against your car.

As a buyer, you have to inspect the insurance papers to determine which type of policy is applicable to the car you intend to purchase.

  • Knowledge of Sum Assured

The sum assured is the amount of money an insurance policy guarantees to pay up barring any bonuses. In other words, it is the guaranteed amount the policyholder will receive. You have to be aware of this value as it generally indicates the depreciation graph of the vehicle you intend to purchase.

  • Selecting an insurance company

In the event that you have to take out a new policy when you buy a used car, it is important to choose carefully. Policies come with fine prints, so watch out for those. A good insurance company should typically cover a wide network of service stations and garages, and support cashless payments. In addition, they should also have record of quick claim settlements.

If you are a used car buyer living in the Carrolton area, all you need to do is search for Used cars in Carrollton, to find the best used car dealers.

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