When you sell your old car and purchase a new one, you can get your
car insurance transferred. 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. It is very important that you compare the car insurance premiums before transferring the insurance,
especially with the option of getting your car
insurance premium transferred. The IDV of the car reduces as the age of the
car increases.
Summary: 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.
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