When you buy a two-wheeler or a four-wheeler, it is urgent to assess how its price will depreciate in the coming years. In effect, you should keep suitable insurance covers to avoid abrupt losses. Always keep in mind that when you propose to sell the car, it will come under used car category, and the price will naturally become low. You should be well-versed with the different types of insurance and what the insurance companies have to offer. Keep the insurance premium calculator handy for used car valuation.
The best coverage
Intelligent buyers go for comprehensive coverage; knowing that accidents and damages are distinct possibilities. Here, you get thorough coverage for any loss and even in case of theft. In addition, you are also reimbursed for any loss incurred by the passenger. Premiums are reasonable in case of comprehensive coverage. If you wish to raise the bar, you can go for zero depreciation car insurance. Here, you will get the pre-determined amount for any dents, scratches or distortion that has occurred to the body of your car. In any event, once the car leaves the showroom, its price automatically depreciates by 10%. You can go for platinum insurance that will get you even the road tax and extra charges like daily allowance.
Preconditions to care for
It is necessary to take care of your car irrespective of your plans of selling it. Its framework, bumpers, fibers and exteriors should not incur more than average dents. The interiors should be in good condition and the seats, facilities and air condition should be working fine at the time of selling the car. Your car should be well-serviced and it is your duty to keep the working records. In absence of these parameters, your car will experience major depreciation. In any case, the used car valuation goes down by 20% when the second party sells it and by 40% when the car is sold any further.
How to evaluate used cars
The formula is almost similar for petrol vehicles vis-à-vis diesel variants. Used car valuation is such that new cars that have already covered 12000 kilometers (15000 kilometers for petrol vehicles) will depreciate by 15%. After having traveled for an average of 30000 to 50000 kilometers, the value of the same car will go down by almost half its original price. Evaluations differ in case of Fiat cars and utility vehicles. You will find that the insurance premium calculator algorithm corresponds with this formula.