How To Transfer Car Insurance While You Buy A Second-Hand Car For A Smooth Ride?
With the hike in vehicle prices, many individuals are becoming less adamant about owning a first-hand car. These soon-to-be car owners may prefer to invest in second-hand cars instead. According to sources, at present, the valuation for the used car market is 1.2 times more than the new car market.
So, if you are choosing to buy a used car, remember that along with all other necessary formalities, you need to purchase car insurance for the used car.
3 things to consider while buying a second-hand car
Investing in a second-hand car has its fair share of benefits as well as complexities. In fact, many people tend to overlook various accompanying requirements of a used car before the purchase.
Therefore, here are a few aspects that require crucial consideration while buying a second-hand car:
● Inspections: Inspect the car thoroughly for damages and all the documents that come with it.
● The registration certificate: This document will help prove one’s ownership of the car after purchasing it.
● No Claim Bonus: Remember that the No Claim Bonus is awarded to the policyholder and not the vehicle and therefore, is not transferable to the new car owner.
Transferring vehicle insurance details after buying a used car
After purchasing a second-hand car of your choice, ensure that your car is protected against damages. Be it a new car or a used one, there are no exceptions when it comes to the law that requires every car owner to have a car insurance policy. Whether the policy is a simple third-party cover or a comprehensive cover is a matter of choice. It is necessary that the new owner transfer the insurance from the previous owner to his/her name. Car insurance companies carry out a full inspection of the second-hand vehicle.
*The other requirements include: *
● Original registration certificate: According to the Insurance Regulatory and Development Authority of India, the name and address of the RC and insurance policy must match the new owner. Therefore, one should first produce the registration certificate, Form 29 and Form 30 - the last two signed by the previous car owner to get the ownership of the car transferred in their name.
*● The current policy: *A copy of the current car insurance policy in the name of the previous owner should be procured as well.
● NOC: The new owner will also have to prove the previous owner’s compliance with the sale. The previous policyholder, therefore, needs to provide a No Objection Certificate.
● Application form: The insurance company will also issue a new application form that will be required to be filled.
*● NCB: *The new car owner will not get the NCB benefits of the existing car insurance policy, as the NCB discount is awarded to the individual and not the car.
● Identity proof: Address proof and passport size photographs of the buyer are also required as identity proof.
*Why should you transfer the car insurance? *
Car insurance creates a safety net that will help the policyholder during an unfortunate accident that involves the insured car. The previous car owner and the new car owner involved in the sale and purchase of a second-hand car are equally responsible for insuring the car.
The law states that the transfer of policy should take place in a span of 14 days after the purchase of the used car. After the 14th day if the policy has still not been transferred and if the new owner has to claim damages, they are not eligible to do so. Therefore, there is no chance of receiving monetary assistance from the company. The previous owner will also be liable to pay for the damages incurred as stated by the Motor Accidents Claims Tribunal. Renew your 4 wheeler insurance online with Tata AIG
Tata AIG offers a range of vehicle insurance policies that provide security to your car. An individual looking to invest in a policy can visit the Tata AIG website to understand how quick and transparent the process of buying and renewing a car insurance policy can be.
In addition to this, the Tata AIG settlement ratio is exceptionally high, sitting at around 96.01% in 2020. This marks the company’s commitment towards settling their customer’s claims efficiently and on time.
Apart from having the car insurance policy for a second-hand car transferred to your name, you could seek more options online through various car insurance providers. TATA AIG also has several options in policies when it comes to buying appropriate four-wheeler insurance for your second-hand car.
A quick recap with a few commonly asked queries
1. Can insurance be transferred to the purchaser of the vehicle?
Insurance is one of the more crucial documents that can undergo a transfer from the previous owner to the new one. The process of transferring insurance is preceded by the creation of a new registration certificate followed by the standard protocol.
2. How do I transfer insurance when buying a used car?
The process of transferring the benefits of an insurance policy to the new owner takes place after following the steps given below:
● Copy of old RC to apply for RC transfer at RTO ● Procuring a copy of the previous policy ● Receiving a Non-Objection Certificate from the previous owner ● Filling an application form at the insurance company of one’s choice ● Transfer of No Claim Bonus to the new owner’s name ● Identity proof using address proof as well as passport size photos ● The inspection report provided by the insurance company ● Payment of a small fee
3. Is insurance mandatory for RC transfer?
The presence of an insurance policy is essential to apply for the transfer of the RC. The RTO demands the vehicle insurance policy to be produced in order to ensure the transfer of the RC.
4. What is the procedure to transfer car insurance?
The documents needed to transfer car insurance are the same as transferring insurance when buying a used car.