How To Deal With Used Car Insurance Policy
Buying and selling of second-hand vehicle also ensure to transfer insurance too. Failure to lapse of possession to the new owner will face severe consequences thereafter.
After a lot of research, you decided to buy a used car, buying a used car is been an absolute choice for a middle-class segment. Both buyer and seller should understand the policy terms & conditions precisely. Instances, of used car insurance policy frequent to insurance companies, new owner files a claim without transferring the insurance policy in his name. Here, a claim is invalid as there is no legal contract between the new owner and insurance company.
Steps to consider while buying second-hand car insurance policy
Nowadays used car sale on online increased tremendously, there are many pre-owned car showrooms and online portals to provide the best finance for used cars. Availing all these perils people are interested to buy used cars online.
Transfer of registration certificate (RC)
Submit Form 29& 30 at your RTO (Road Transport Authority), should be signed by the previous and new owner and avail NOC (No Objection Certificate) from the previous owner with duly signed, this helps to speed up the registration process.
Transfer insurance policy
If you RC is transferred and your used car insurance is not yet transferred; in this case, your right to claim for damages is nullified.
Possible instances to avail insurance
Change the name of previous policy owner- Transfer used car insurance plan in your name along with the RC take a copy of Form 29& 30 to assure the possession in your name. To make the whole process simple you can get assistance from the insurance companies online.
As per Sec.157 of Motor Insurance Policy used car insurance policy should be transferred within 14 days of the purchase. If the vehicle encounter with the accident, third party insurance is covered within 14 days of purchase.
The previous owner does not possess insurance plan- There are some instances where the previous owner does not get the insurance policy. In this scenario, a new owner has to get the new policy with the present insured declared value. The best way to buy used car insurance is to go online to check quotes for used cars on PolicyBachat.com and buy a policy online easily.
Transfer No-Claim Bonus
No Claim Bonus is given to the policy-holder transfer of possession does not mean the transfer of NCB. NCB discount can be used by the previous owner if he purchases the new vehicle. The new owner has to bear the difference amount of discount availed.
Getting car insurance for used cars is same as a new car but you need to handle the process of changing the name by submitting proper documents. Taking proper steps in transferring policy document in your name will have a benefit for your vehicle. We advise you to get the policy transferred within a specific time and to avail claim for any damages.