Transferring Car Insurance

The used or second-hand car market is getting a lot of ups in India attracting buyers and dealers to go with the used vehicles. Going with a second-hand car is a smart choice when comparing the price factor between a new and an old car. The biggest reason for buying a used car is a price consideration, attracting the used car market to be transparent and organized. Although, for buyers and sellers the process of purchasing and selling a used vehicle is quite intimidating.

While purchasing a used car, the insurance is an important consideration which saves the vehicle from helpless and unpredicted situations and incidents. As assumed to pay less insurance for a used car is a misconception of the purchasers. There are many factors which affect the price of car insurance comprising the sort of coverage of a vehicle, type of purchased car, the driving experience and more. There might be a question in your mind that the cost of insurance and insurance coverage can really affect while you buying a second-hand car. So, here we are to clear it that what are the things before buying used cars.

Buying A Used Car

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It is essential to understand that it is necessary to transfer the insurance to the buyers’ name else it will invite unwanted problems while making a claim. If the insurance policy is not able to move to the buyer, it will undoubtedly become invalid for buyers.

Types Of Insurance:

One expects to get similar coverage for a used and new car. Depending on the value and age of the vehicle, a decision involves multiple coverage such as comprehensive or third-party coverage to cover the cost of repair to the car when it comes to damage. It is better to discuss the matter with a licensed broker who can help you in comparing in scout the coverage and car insurance costs in a particular situation.

Car Insurance

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With little knowledge and awareness about the insurance, it leads to the grievances when a loss occurs in India. Therefore, it is essential to understand that the transfer of insurance is a significant aspect when you are buying a used car, and ignorance can result in a liability to the purchaser or owner. To ignore such legal hurdles, it is also the responsibility of the individual to make sure that the car insurance transfer to the name of the new owner.

Here is the procedure of insurance policy transfer to make your future ready for any such requirements:

  • It is the responsibility of the car purchaser to make sure that the insurance policy has been transferred to the name of the owner within 14 days.
  • To make all the process to go smoothly and to further help the policy transfer, the purchaser is required to furnish a fresh insurance proposal and submit the proof of sale. The previous owner signs Forms 29, 30, registration certificate, and send the transfer fee along with the last copy policy to the insurance company. The insurance company will provide a of the transfer endorsement.
  • The documents mentioned above are enough to start with policy transfer to the new owner. When you submit the copy of the original registration certificate, it will assist in escaping any hurdles while claiming after it is supported by the RTO, as generally possession transfer take some time at the RTO.
  • At the time of claim, if the insurance policy has been transferred to the new owner successfully but the registration certificate copy does not include complete transfer process indication, or the insurance company doesn’t have proof available, then the new owner will have to give the evidence or transfer of registration copy to the company to make sure that the claim is completed.
  • The claim cannot be refused in case the transfer of insurance is in progress. Although, it is possible that it is only compensated when the proof of transfer in registration certificate is given to the insurance service provider.