Buying a Used Car with Active Insurance: Are You Still Covered? Find Out!

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If anyone is looking for a used car, it’s definitely an appealing option that can save you a lot of money.

However, buying a used car doesn’t stop at just selecting the right car and purchasing it. There are many other things to consider, especially if the used car you’re about to buy still has active insurance. Will you continue to receive coverage in this case? And if something unexpected happens, can you still file a claim? Let’s find out!

Do You Need Insurance When Buying a Used Car? What Are the Consequences of Not Having It?

Every used car comes with basic motor insurance (compulsory by law). However, if you don’t have additional car insurance, you might miss out on several benefits. While getting car insurance isn’t strictly necessary, having it definitely gives you peace of mind. If an accident or an unexpected event occurs, you won’t regret not having insurance in place. Let’s take a look at the potential drawbacks of not having insurance:

• If an Accident Occurs, You Pay Out of Pocket
  

If you’re involved in an accident where you are at fault, you’ll be responsible for all repair costs for your car and any damages to the other party. This is because there won’t be any insurance to cover these expenses.

• No Support for Accident Negotiations

If the accident is serious enough to require going to court, you’ll have to handle every step yourself, whether it’s paying bail or navigating the court process. There’s a lot to manage, and it can be incredibly stressful.

• Full Risk for Floods, Fires, or Theft

Even though it's a used car, there's no guarantee that it won't be stolen or damaged in a flood or fire. If any of these incidents occur, you’ll bear the full responsibility for the risks and costs involved.

If You Buy a Used Car with Active Insurance, Will the New Owner Still Be Covered?

This is an important question because many people may misunderstand that the insurance will terminate when a used car is purchased. In fact, the insurance can continue to provide coverage, but it’s essential to have a clear agreement with the previous owner and the seller. Additionally, you should thoroughly check the details in the insurance policy to understand what is covered in case of an accident.

It’s advisable to check the type of insurance that comes with the car with the seller, such as what level of coverage it is, how much time is left on the policy, and, most importantly, whether it’s a named driver policy. If it’s a named driver policy, you’ll need to ensure the name of the "policyholder" is updated to include the new owner. This will ensure coverage is extended to the new owner until the policy expires.

Even when buying a used car, there are many important details to know and check, especially if the insurance is still active, as this directly affects the benefits you will receive. To ensure that you can drive with peace of mind, it’s recommended to thoroughly review the insurance policy that comes with the car. If you need additional coverage, you can also purchase a new policy that better suits your needs. This way, you can enjoy driving worry-free on every journey!

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