Transfer car insurance policy: Things you need to know
Buying a used car instead of a brand new car can help you save a lot of money. In the excitement of buying a car, do not forget your duties as soon as you receive the car keys. Many people are not aware of the fact that car insurance has to be transferred to the buyer’s name, once the car is sold. Not transferring the car insurance to the buyers name can lead to many problems in the future. If the insurance policy is not transferred to the buyer, it will be invalid.
Many people think that the job of transferring the policy falls on the sellers. Being a buyer of a second-hand vehicle, you must also get involved in the process. So, if you are planning to buy a second-hand car, there are certain things that you need to keep in mind, vis-a-vis vehicle insurance transfer.
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1. It is well known that a motor insurance policy covers 2 types of damages, they are third-party damage and own damage. In case of third party damage, damages caused by your vehicle to the third party will be covered. On the other hand, own damage covers the injury caused to you and damage to your vehicle.
When you buy a second-hand car, you need to apply for transfer of the insurance policy in your name within 14 days. If you do not apply for the policy transfer within 14 days, then the insurance company is not bound to bear any losses caused to you and your vehicle.
2. If you meet with an accident and the insurance of your vehicle is still in the previous owner's name, than the insurance company will not bear any losses caused to your vehicle or the third party. The court has all the right to send a notice to the previous owner to pay for damages caused to the third party by you.
To transfer the car insurance policy from the previous owner's name to your name, you need to contact the exiting insurer and you will have to submit certain documents.
a. Car insurance transfer form
b. Proof of sale which includes registration certificate Forms 29 and 30 signed by the previous owner.
c. Copy of previous policy
d. Transfer fee
The insurance company will then start the transfer process. Once you submit the application form along with the requisite documents and fees, the insurance company will then commence the transfer process and send the updated policy with a change in name.