I will be buying a used car and want to know what kind of car insurance is available for such cars. Is the premium higher than that for a new car?
Rajit Mehta, Gurgaon
Motor insurance is mandatory to be able to drive your car on roads. There are two options available to you when you are buying a used car. First, if the insurance is being sold by the current owner of the car along with the car. In such a case, the policy will have to be transferred to your name. All you have to do is inform the insurance company and ensure that the policy is transferred as per relevant terms and conditions of the insurer. Second, you could buy a new insurance policy for the car when you are buying the car. In this case, the insurer will evaluate the condition of the car to arrive at the value of the car, which may be lower than the price at which you bought it. But, the value that the insurer arrives at will be the basis on which you will be issued a new policy. As the premium on a car insurance is based on the value of the car being insured, the probability of premiums on an old car is lower than that of a similar new car.
