Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Track & Policy DownloadLogin

Used Car Insurance/Second-hand Car Insurance

Used or Old car insurance, also called second-hand car insurance, is a type of insurance that provides insurance cover to used cars, second-hand cars and old/vintage cars. This insurance cover protects your four wheeler vehicle from the financial damages caused due to accidents, natural disasters, theft, and more. Similar to regular car insurance, old car insurance also includes third-party damage cover and coverage for your own car damages.

Motor Dots
Car Insurance starting from ₹6/day*
Car Insurance starting from ₹6/day*
  • Save upto 75%*
    Lowest Car Premiums
  • 11.5 Lakh+
    Happy Customers
  • Claim Support
    7 days a week

*TP price for less than 1000cc four-wheeler. All savings/offers are provided by the Insurers which are subject to modification. Terms and conditions apply

Top Car Insurance Plans

Comprehensive
Third Party
Own Damage
  • CASHLESS GARAGES 6,800
  • CLAIMS SETTLED 89%
  • ZERO DEP. CLAIMS UNLIMITED
Starting From 2881
Key Features:
  • Right Green Tick Maximum Cashless Garages
  • Right Green Tick Over Night Vehicle Repairs
  • Right Green Tick 24x7 Roadside Assistance
  • Right Green Tick Quick Claim Settlement
  • CASHLESS GARAGES 3,100
  • CLAIMS SETTLED 95%
  • COMPREHENSIVE CLAIMS UNLIMITED
Starting From 2396
Key Features:
  • Right Green Tick Towing Assistance (For Accidents)
  • Right Green Tick Coverage Outside India
  • Right Green Tick PSU Provider
  • Right Green Tick Quick Claim Settlement
See More Plans

According to the Motor Tariff Act, after buying a used car, it is necessary for the new owners to get the insurance policyOld/transfer to their name within the next 14 days of buying the car by contacting their respective insurance provider. It is important to note that only the third party section of the car insurance policy gets automatically transferred in the next 14 days of buying the car. While, for transferring the ‘Own Damage’ section, it is necessary to register the insurance policy under the name of the new owner.

What is Used/Old Car Insurance?

Used or Old car insurance, also called second-hand car insurance, is a type of insurance that provides insurance cover to used cars, second-hand cars and old/vintage cars. This insurance cover protects your four wheeler vehicle from the financial damages caused due to accidents, natural disasters, theft, and more. Similar to regular car insurance, old car insurance also includes third-party damage cover and coverage for your own car damages.

Why Is It Important to Insure Second-Hand Cars?

1. Protects Against Damages:

Comprehensive car insurance policies for used or old cars protects you from financial losses in case of any mishaps, like accidents, fire damage, or natural disasters.

2. Mandatory for All Vehicles:

According to the Motor Vehicles Act, every car in India should atleast have a third-party car insurance.

3. Third-Party Liability Coverage:

If your used car causes harm or injury in an accident to another car, the third party insurance policy will cover these damages.

4. Personal Accident Coverage:

A second-hand car insurance plan also provides coverage for injuries or accidental death of the owner/driver along with providing protection to your car.

5. Theft Protection:

If you insure your second-hand car, you are protected against theft.


How to Transfer Ownership and Insurance of a Second-Hand Car

When you purchase a used car, two crucial steps involve transferring ownership and transferring the existing insurance policy. Here are the steps to follow:

Step 1. Visit the RTO: Visit the nearest Regional Transport Office (RTO) and apply for vehicle ownership transfer.

Step 2. Submit Documents and Fees: Provide all necessary documents and pay the required fees for the ownership transfer.

Step 3. Contact the Insurer: After the RC transfer is complete, get in touch with the insurance company to transfer the policy to your name.

Step 4. Submit Documentation: Submit a new proposal form along with the necessary documents and pay the insurance transfer fees. The insurance company will then transfer the policy to your name.

The documents required to transfer ownership of used car insurance are -

  1. Original Registration Certificate or RC with the previous owner’s name on it
  2. Form 28, 29 and 30 of the previous owner of the car
  3. Copy of the running car insurance policy
  4. Current car insurance policy document
  5. Certificate of Insurance
  6. New proposal form
  7. No Objection Certificate (NOC) from the previous owner
  8. Proof of RC transfer and payment of transfer fee
  9. New RC copy
  10. No Claim Bonus (NCB) difference amount

How to Buy/Renew Used Car Insurance Policy Online

Purchasing or renewing used car insurance online is a very easy process. Here's a step-by-step guide:

1. Visit the Website: Go to the website of the insurance company, or visit www.insurancedekho.com.

2. Enter Vehicle Details: You need to provide details of your car like model, registration date, registration number, fuel type, etc.

3. Choose Insurance Plan: Choose the type of insurance you prefer for your loved car, either third-party or comprehensive.

4. Provide Previous Insurance Details: Enter details of your previous insurance policy, including the policy expiry date, claims history, and No Claim Bonus details.

5. Receive Insurance Quote: You'll receive a quote for the insurance plans, along with their premium amount.

6. Add-Ons: If you choose a comprehensive insurance policy, you can enhance your coverage by buying add-ons for a small increase in premium.

7. Payment: Complete the payment process using available digital payment methods.

8. Receive Certificate of Insurance: Once the payment is confirmed, the Certificate of Insurance will be sent to your registered email.

Points to Remember While Buying Second-Hand Car Insurance

When purchasing insurance for a used car, it's essential to make informed decisions. Here are some key considerations:

1. Compare Insurance Plans: Before buying second-hand car insurance, compare plans offered by different insurers and thoroughly read their terms and conditions.

2. Determine the Value: Calculate the current market value of your old car to determine the Insured Declared Value (IDV), which directly impacts the insurance premium.

3. Depreciation Rate: Be aware of the rate of depreciation for your car, as it affects the claim settlement amount during repairs or replacements.

4. Add-On Covers: Inquire about available add-ons such as Engine Protect cover, Passenger cover, and consumables cover, as they can enhance your coverage.

5. Claim History: If switching insurers or renewing an existing policy, understand the claim history of the previous insurance policy. A no-claims history can lead to discounts through the No Claim Bonus (NCB).

6. Additional Discounts: Install anti-theft/security devices on your old car to reduce the insurance premium and mitigate the risk of theft.

7. Claim Settlement Process: Choose an insurer with a straightforward and hassle-free claim settlement process and a quick turnaround time for claim settlements.

8. Policy Transfer: Ensure you transfer the insurance policy within 14 days of purchasing a second-hand car or purchase a new policy according to your requirements.

9. Inspection: While buying insurance for your second hand car, you can either get the existing policy transferred to your name or get a new policy just for you. In either of the cases an inspection would be required to be done to determine the condition of the car

Factors Affecting Used Used Car Insurance Premium

Several factors influence the premium for second hand car insurance, including:

1. Make and Model: The make and model of the second-hand car significantly impacts the premium. High-end car models have slightly higher premiums due to their increased market value.

2. Current Market Value: The market value of the car, known as the Insured Declared Value (IDV), directly affects the premium. A higher car value results in a higher premium.

3. Mileage: The number of kilometers driven by the car affects the premium. Higher mileage may lead to a higher premium.

4. Geography: Where exactly does your car run also determines the car insurance premium. If you live in an area with poor roads or in an area where there are too many cars, your car insurance premium might be higher.

5. Inspection: Since an ownership changes while buying a used car, Insurance companies believe that the risk of the car also gets transferred. In lieu of that, used cars more often than not are required to undergo inspection to check for the condition of the car. The inspection can either be a self-inspection or through a third party inspection based on the choice of the user.


Calculate Your Car Insurance Premium Online

Select your car brand

  • Maruti
  • Hyundai
  • Honda
  • Toyota
  • Mahindra

Which city is your car registered in?

  • Ahmedabad
  • Bangalore
  • Chandigarh
  • Chennai
  • Gurgaon

When did you buy your car?

Benefits of Buying Used Car Insurance Policy from InsuranceDekho

Choosing to purchase old car insurance from InsuranceDekho offers several advantages:

1. Digital Process: InsuranceDekho is an online insurance company, enabling you to buy or renew old car insurance online without paperwork. Digital payment options simplify the process further.

2. Quick Claim Settlement: Raising a claim with InsuranceDekho is straightforward, with minor claims being settled instantly and major claims typically resolved within hours or days, depending on the severity of the damage.

3. Best Car Insurance Plans: InsuranceDekho provides insurance plan quotes based on the ideal Insured Declared Value (IDV) for your old car. You can compare various insurance plans and add-ons before making your selection.

What is Classic Car Insurance and How Does it Work?

Classic car insurance is a specialized category of four wheeler insurance made for old or vintage cars. These vehicles must be certified by the Vintage and Classic Car Club of India (VCCCI) to be eligible for classic auto insurance. Similar to new car insurance, classic car insurance offers two main types of coverage: third-party and comprehensive.

A comprehensive classic car insurance policy covers damages to your vintage car, while a third-party policy provides mandatory coverage for damage or loss to third-party property or life. Although comprehensive insurance costs more, it covers repair and replacement costs for vintage car components.

How to Buy/Renew Classic Car Insurance

To purchase or renew classic car insurance, follow these steps:

  • Determine Vehicle Value: Determine the current value of your vintage or classic car.
  • Check VCCCI Certification: Ensure your vintage car is certified by the VCCCI.
  • Share Vehicle Details: Provide all vehicle details to the insurer, along with the necessary documents.
  • Agree on Insured Declared Value: Come to an agreement with the insurer regarding the Insured Declared Value (IDV) or sum insured amount.
  • Choose Insurance Plan and Add-Ons: Select your insurance plan and any desired add-ons.
  • Get Insurance Quote: Receive a quote for your classic car insurance policy.
  • Payment: Pay the premium, and collect your vintage car insurance policy certificate.

Car Insurance Companies Reviews & Ratings

What users are saying
  • Fire Damage Claim

    A short circuit in my car's wiring lit a small fire which damaged the dashboard till some extent. Bajaj Allianz was my insurer and handled the claim process ideally. My car was repaired at a cashless garage and I just had to pay the pre-agreed deductibles and rest was covered with my car insurance. The quality of repair was excellent, and I didn't face any out-of-pocket expenses. InsuranceDekho's suggestion to go with Bajaj Allianz for comprehensive coverage proved beneficial to me.

    C
    Bajaj Allianz car Insurance
    By Charlie Daniels
    On: 12th July, 2024
  • Theft Recovery

    My car was stolen from the office parking in the middle of the day. I instantly called the police and made my next call to Digit, whose car insurance I had purchased. They very calmly handled the conversation and guided me throughout the police complaint process. Unfortunately, police could not find my car and issued a non traceable certificate after which I got my claim from Digit. I'm thankful to InsuranceDekho for recommending Digit for its efficient working and sympathetic customer support.

    G
    Digit car Insurance
    By Gulfisha Ahmed
    On: 12th July, 2024
  • Flood Damage Repair

    My car was damaged due to the floods last month in my state. Fortunately, I had Acko car insurance and it helped me financially to get my car repaired. My claim was approved after a smooth process and my car was repaired at a cashless garage. I have no complaints with the services provided by Acko. Although the condition of my car before repairing was really bad, Acko claim settlement process returned my car in 4 days and it looks brand new now. Thanks to InsuranceDekho for suggesting Acko for their reliable services.

    N
    Acko car Insurance
    By Nilutpal Das
    On: 12th July, 2024
  • Accident Claim Settlement

    I was involved in a minor accident where the front bumper of my car was damaged. HDFC ERGO's claim process was smooth and efficient. My claim was approved within 24 hours and car was repaired at one of their network garages. I'm grateful to InsuranceDekho for recommending HDFC ERGO for their hassle-free claim settlement.

    A
    Hdfc Ergo car Insurance
    By Arundhati Raj Gupta
    On: 2nd July, 2024
  • Smooth Third-Party Accident Cl...

    Last week my car hit a pedestrian by accident, and it injured him severely. After taking him to the hospital emergency, I was quick with my action to inform ICICI Lombard, who was my insurer. They handled the whole case from start to end and settled the third-party claim efficiently. I’m thankful for their support during this stressful time and I'm glad that I sought advice from InsuranceDekho while selecting ICICI Lombard as my insurer.

    P
    Icici Lombard car Insurance
    By Padmashree Saini
    On: 2nd July, 2024

Used Car Insurance FAQ

  • Why should I need an insurance policy for used car?

    You should buy an insurance policy for a used car as according to the Indian Motor Tariff, it is a mandatory requirement for every car owner for being able to drive the vehicle legally in the country. Besides legal compliance, a car insurance policy also provides you with financial stability if your car meets an accident in the future.

  • How is the second hand car insurance premium calculated?

    The car insurance premium of a second-hand car mainly depends upon the Insured Declared Value of the car which is further dependent upon the car's age. If it is more than 5 years old, then the IDV is set based upon the mutual consent between the concerned parties.

  • How do I renew my second hand car insurance?

    A second-hand car owner has two choices either they can continue with the existing policy or purchase a new policy. In case they wish to continue with the existing plan, they need to transfer the ownership to their name. On the other hand, if they wish to buy a new plan, then it is the same as buying a new car insurance plan. The process is as follows:

    • Step 1: Visit InsuranceDekho. Compare the car insurance plans online and get the quote.
    • Step 2: Choose the insurance plan you want i.e Third party or comprehensive or standalone own-damage car insurance policy.
    • Step 3: Choose the additional benefits to enhance your coverage.
    • Step 4: Make the payment using a debit/credit card or net banking facilities.
  • Why should you get a second hand car insured?

    You should insure your second-hand car due to the following reasons:

    • Third-party liabilities.
    • Damage to your car due to manmade calamities.
    • Damage to your car due to natural calamities.
    • Damage to your car due to theft or hijacking.
  • What will be the ncb for second hand car insurance?

    No Claim Bonus (NCB) is attached to the car and not the policyholder. Thus, in case of purchase of a second-hand car, if you are continuing with the existing car insurance policy, the NCB will remain the same.

  • How much is the insurance premium on a used car?

    IDV of a second-hand car is generally on the lower end and consequently results in a lesser premium amount. The premium for a second-hand car is based on current insurance plan details, past claims (if any) and NCB.

  • Is it mandatory to get insurance for second hand car?

    Yes, it is mandatory to have insurance for a second-hand car in India, just as it is for a new car. The primary purpose of mandatory insurance is to ensure that every vehicle owner has financial protection in case of accidents, injuries to third parties, or damage to third-party property.

  • Can I buy gap insurance on a used car?

    Certainly, you can typically obtain gap insurance for a used car. Gap insurance, an abbreviation for Guaranteed Asset Protection, is a form of coverage designed to bridge the difference between the outstanding balance of your car loan or lease and the actual cash value (ACV) of your vehicle, particularly in cases of a total loss, such as due to an accident or theft.

    Although gap insurance is frequently associated with new cars, it can also be a beneficial choice for individuals purchasing used cars. This is especially significant if you've obtained financing for the acquisition of the used car, and the outstanding loan amount surpasses the car's present value. Such a situation may arise due to factors like a high-interest loan, an extended loan term, or a quicker depreciation in the car's value relative to the rate of your loan payments.

  • Which insurance is better for an old car?

    A comprehensive insurance plan is generally better for an old car as it offers coverage for both third-party liabilities and own damage.

  • Can I insure a 15-year-old car?

    Most insurance providers do not offer package insurance plans (combining third-party and own damage cover) for cars over 15 years old due to higher risk factors. It's best to inquire with insurers about your specific requirements.

  • Can we insure an expired car?

    You can insure a car with an expired insurance policy within the 90-day grace period after the policy's expiration. After this grace period, you must purchase a new policy.

  • How can I lower the cost of old car insurance?

    To reduce the cost of old car insurance, transfer any No Claim Bonus (NCB) benefits, if applicable, and consider installing anti-theft/security devices on your car to receive discounts.

View More Questions

Contact Details

For any assistance or query, call us on

Car Insurance News

FIND RTO OFFICES BY STATE IN INDIA

FIND RTO OFFICES BY CITY IN INDIA

#Applicable on non-inspection cases i.e. existing policy has not expired or when buying a policy for a new vehicle.