When you’re buying a car what your auto insurance options are should be your next thought--especially if you’re getting a used or repossessed car. Regardless of your vehicle’s state or status, having car insurance is a must.
Two Ways to Get Car Insurance Coverage for Your Vehicle
Here’s a car insurance guide quick-bite: There are two ways to secure insurance for your used, second-hand, or repossessed vehicle.
- Retain the insurance policy of the old owner; or
- Get a brand-new insurance policy for the car.
Retaining the Current Car Insurance Coverage
If you’re planning to retain the original insurance policy, tell the owner upfront immediately. Why? Read on.
- Once the sale of the vehicle is finalized, the original owner has to inform the insurance company that ownership of the car is changing. Transfer of ownership means that its auto insurance policy needs to also be updated (i.e., transferred) or voided, too.
- Getting approval from the insurance company to transfer the insurance policy to your name is next. Having your car and insurance policy under the same name (yours) is important, especially if you need to make any insurance claims. The original owner needs to get this approval so make sure you follow up on it as soon as the sale is finalized.
- After the policy has been transferred to your name, follow the company’s car insurance guide for your premium payment/s and other requirements.
Applying for New Car Insurance Coverage
If you do want to get a new insurance policy for your second-hand car, these are the general steps to getting one:
- Before the sale is finalized, start canvassing for an auto insurance provider that offers you the coverage you need at prices that fit your budget. For reference on car insurance prices, check out Assurance.Ph’s insurance calculator.
- Once you’ve made your choice, inform the insurance company. They will first have to check if your vehicle of choice is insurable.
- The company you pick will inspect the vehicle using a car insurance guide that includes criteria like:
- The age of the car (up to 10-12 years only)
- Vehicle condition (body, engine, etc.)
- Accident and damage history
- Modifications and upgrades
- After inspection and approval, you may now process your application (don’t forget to choose the coverage that you see is necessary to include in your insurance policy).
- Complete all the requirements such as your Official Receipt, Certificate of Registration, Vehicle Information, and car photos (depending on the insurance company) and send them through their email or address.
- Once completed and all the payments have been made, you may expect to receive your policy either through email or mail.
Assurance.Ph is your partner in providing protection for your vehicle, property, and passengers in the Philippines. Together with Automart.Ph and Motomart.Ph, we help car and motorcycle owners choose the protection package that suits their needs and budgets, and ensure easy and affordable access online and offline. Chat with one of your Assurance advisors via Viber (0956 302 9631) or email us at firstname.lastname@example.org to know more about the insurance packages that Assurance.Ph offers.