Car insurance
premiums have to be paid for both new and old cars. For a new car, car insurance premium depends on the
showroom price fixed on the car but if you purchase a second hand car, car insurance premium is calculated on
the basis of Insured Declared Value (IDV). IDV is the amortized value of the
car by the insurer and the policyholder. The IDV of the car reduces as the age
of the car increases.
When you sell
your old car and purchase a new one, you can get your car insurance
transferred. It is very important that you compare the car insurance premiums before transferring the insurance.
Transfer of car insurance premium needs a lot of
documentation to be done. Hence, it becomes essential to keep all your
documents safe and handy.
Summary: You
have the option of getting your car
insurance premium transferred if you plan to buy a new car when you have an
existing old car.
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