Used cars are becoming increasingly attractive as more people seek to own their own personal mobility. With financial constraints affecting many people in recent years, buying a pre-owned car provides exceptionally better value with little loss in utility or prestige.
There are some important steps that every used car buyer is well aware of when buying second hand cars. These include transfer of ownership and conducting a full inspection of the car before buying. However, there is one step that often gets missed and that is the transfer of car insurance from the previous owner to the current owner.
Also Read – Types Of Car Insurance Coverage
Why is car insurance required?
If you own a car, then you will need a valid car insurance for yourself and your car to legally be allowed to drive your car in India. Without a car insurance, you are liable to get hefty fines and penalties for driving without one.
Additionally, a car insurance will provide financial coverage for you and your car in the event of an accident. This includes protection from financial liability to pay for damage repairs and other expenses that arise as a result of the accident.
Why do you need to transfer car insurance?
Considering the importance of car insurance, it goes without saying that it is essential to transfer a valid car insurance from the previous owner. Transferring the car insurance to yourself can save you from incurring the additional costs of buying a new car insurance for your car.
When you purchase a used car, you must apply to transfer the car insurance from the previous car owner within 14 days of the purchase. During those 14 days, the third-party protection of the car insurance will be available to you
What happens if I don’t transfer car insurance?
Even though you are legally the owner of the car, the insurance only provides coverage to the policyholder. What this means is that in the event of an accident, you will be liable to completely pay the damages incurred. Without the car insurance transferred in your name, any claims filed by you will be rejected by the insurance provider.
Also Read – Comprehensive Insurance
What is the process for car insurance transfer?
Once you purchase a used car, you must ensure that you file for a transfer of car insurance within 14 days of the purchase. The steps for transferring the car insurance is detailed below.
Car Insurance Transfer for all Insurance provider
You will need to send the following documents to the insurer to transfer the car insurance:
- Application form from respective insurance provider
- Form 29: Notice of transfer of ownership of car
- Form 30: Application for intimation and transfer of ownership of car
- No Objection Certificate form existing policyholder
- Registration Certificate of the car or RTO receipt
- Any other document as sought by respective Insurer. The insurer may seek No Claim recovery as applicable or Pollution under control certificate etc.
- Few Insurers might request a physical visit at their nearest branch
Most private insurance providers require only an email from you to initiate the transfer of car insurance. You can download an email template to use here: Car Insurance Email Template
Also Read – Car Insurance
Will the No Claims Bonus transfer from the previous owner?
Unfortunately, the No Claims Bonus accrued by the previous insurance policyholder will not be transferred to you. However, since No Claims Bonus are applied to the policyholder, if you have the bonus from a previous car insurance, you can apply for the same to be carried over with your current car insurance.
Insurance endig lasting due date