Car Insurance for Used Cars
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What is Used Car Insurance?
Used car insurance is a type of insurance plan that covers second-hand or used cars. The policy protects a second-hand car against risks such as loss, damage, or legal claims from third parties. Car insurance for used cars is similar in design to a standard car insurance plan.
Importance of Insurance for Second-Hand Cars
Mandatory Requirement
It is compulsory under law for vehicle owners to purchase basic car insurance. Failure to do so may attract stiff penalties and also lead to impounding of your vehicle.
Coverage for Third-Party Claims
Legal claims may arise if you injure other people or damage their property while driving a second-hand car. These expenses are covered under second-hand car insurance.
Comprehensive Coverage
Any car, whether old or new, is exposed to several risks, such as accidents, theft, vandalism, natural calamities, etc. Suitable insurance coverage is required to protect car owners against such unforeseen events.
Personal Accident Coverage
Car insurance for second-hand cars also provides coverage to vehicle owners against accidental injuries, disability, and death
Types of Insurance for Used Cars in the UAE
Third-Party Car Insurance
It is mandatory under the UAE motor laws for vehicle owners to purchase third-party car insurance. It is the most basic type of coverage. It protects you against legal claims arising from third parties after an accident involving the insured vehicle. It includes medical expenses for treating injured people and compensation for property damages. It does not cover loss or damage to your vehicle.
Comprehensive Car Insurance
This plan covers both own-vehicle damage and third-party liabilities, where the car owner is responsible for any loss or damage. It protects against a host of risk factors, such as natural calamities and man-made disasters, such as riots, vandalism etc., and theft. Several add-on covers can be bought along with this plan to get specific coverage and enhanced protection.
How to Transfer Ownership and Insurance of a Second-Hand Car?
Please note the following aspects for a seamless transfer of insurance for used cars.
Second-hand car insurance can be transferred only after transferring the ownership of the vehicle. You need to produce proper documents in support of your ownership.
Both the previous owner and the new owner of the vehicle (i.e. the person who needs car insurance) should notify the insurance company in advance about the impending transfer.
The insurance transfer must be done within the specific time prescribed by the insurer. It is advisable to get this done immediately after the car ownership is transferred.
Submit the duly filled transfer forms along with the necessary documents.
The insurer may arrange for a vehicle inspector to check the condition of the vehicle.
The buyer can request changes or additional features in the plan as may be necessary. The insurer may also suggest the buyer to purchase some add-on covers to suit his/her requirements.
Auto insurance for used cars is successfully transferred after completing the above formalities.
List of Documents Required to Transfer Used Car Insurance
A copy of the existing car insurance policy
A No Objection Certificate (NOC) from the current vehicle owner
Duly filled car insurance transfer form
Proof of ownership of the new owner
Copies of the registration certificate (RC) and other vehicle documents
A copy of the car inspection report received from the RTA
Factors Affecting the Second-Hand Car Insurance Premium
Age & Condition of the Vehicle
The premiums are invariably higher for older cars or those not in ‘proper’ condition. However, newer cars with good maintenance are often charged lower premiums.
Usage of the Vehicle
Commercial vehicles with heavy usage suffer a lot of wear & tear over a short period. The premiums are higher for such vehicles. Personal vehicles are charged lower premiums as they are generally not subject to harsh usage.
Location of Usage
The risk is higher if the car is expected to be used in areas that are vulnerable to natural calamities, conflicts, or theft. Insurers levy higher premiums in such situations.
Safety Features
Installation of security features such as anti-theft devices enhances the safety of the vehicle and reduces the risk of theft. This, in turn, results in lower premiums
Buying Add-On Covers
Vehicle owners who opt for various add-on covers end up paying higher overall premiums. The total premium increases with the number of add-on covers you choose
Past Claim History
Used cars with a history of above-average claims can attract higher premiums as they are deemed to be risky by insurers
How to Buy Insurance for Used Cars in the UAE?
Step 1
Visit the official website of Prominent Insurance Brokers. Enter your details in the second-hand car insurance quote form.
Step 2
Once you provide all the required details in this form, click on the ‘Submit’ button.
Step 3
One of our executives will soon get in touch with you. You will be guided by our team of experts to buy the best car insurance for used cars in the UAE. You can make the payment online.
You can also click on the Whatsapp icon on this page and chat with our team members. You will be guided step-by-step to buy the policy online.
Frequently Asked Questions on Second-Hand Insurance
Buying a second-hand car provides you with several benefits, such as affordability, reduced insurance premiums, and lower repair costs as compared to a new car. Used cars are also ideal for newbie drivers and short-term requirements.
Used cars have lower insured declared values (IDV) or market values on account of depreciation charges. This results in lower premiums on insurance for used cars (for the same insurance coverage).
Buyers who fail to transfer second-hand car insurance to their names within the prescribed period shall not be eligible to raise any claims with the insurer in case of loss or damage.
No. The no-claim bonus benefit is provided to the policyholder and not the vehicle. So, the previous owner retains the no-claim bonus accumulated on the policy.
