How to Buy Insurance Policy for a Used Car

1. How to Buy Insurance Policy for a Used Car Nowadays, demand for premium used cars has grown in leaps and bounds in Malaysia. Car insurance plays a major role in buying a used car. If you are also purchasing a used car, then you need to understand the insurance policy of the used car, terms and conditions. When you buy a used car in Malaysia, there are certain things you should know to purchase insurance for your car. Read on to know more on this. Check insurance papers: When you buy a car directly from a seller, make sure you check the insurance papers. Both buyer and seller should ensure that the insurance is transferred in the new owners’ name, to avoid any legal hassles in the future. Please note that only third-party insurance is transferable. As a buyer, it’s your responsibility to check car insurance validity and previous claims made. When you purchase the car, ask the seller to transfer the policy in your name. If the previous does not have one, then you can negotiate car price further down. Transfer insurance policy ownership: Buyers must transfer the ownership of the car insurance policy in their name within two weeks of purchasing the car. To transfer the policy, ask the seller to convey this to his/her insurance company in

2. writing. Remember, if car is registered in your name, but the insurance policy has not been transferred, then your insurance claims will not be settled in future. Buy a new insurance policy if previous owner does not have one: It may happen that the previous owner didn't hold a valid insurance at the time when you bought his/her car. Once you transfer car registration to your name after the purchase, you must apply for a new insurance policy. When you will contact a reliable insurance company, a new policy will be issued to you after a quick vehicle inspection. You can save some money on auto insurance premiums as the value of the used car is less than a new car. You will likely pay lower insurance premiums because used cars are less valuable. Additionally, the used car's model and history may have additional impact on your rates. If you’ve had a car in the past, and you hold a no claim bonus (NCB) discount, then you can transfer the NCB amount to discount the new policy you buy. Remember, you will also be required to purchase liability coverage. Whether you are buying used car from a known person or using any online used car market, get car insurance policy transferred to your name or buy a new one. Note that proof of auto insurance is required by law in Malaysia, so make sure you have a valid insurance to drive the used car.