There are often cases where second-hand car owners claim insurance without transferring the insurance policy to their name. The insurance company can’t pay in such cases since the policy has not been transferred to the new owner. With the increasing instances of such claims, it becomes necessary to address the question – Can you skip buying car insurance for pre-owned cars? While the short answer is no, let us look at other facets of this concern.
Car insurance – A mandatory requirement
Whether you have a car or a bike for private or commercial use, motor insurance is mandatory. The Motor Vehicles Act requires a valid third-party motor insurance policy for vehicle owners. Third-party car insurance is the minimum requirement for all car owners. However, it can be increased to a comprehensive approach. A comprehensive car insurance cover provides damage coverage and covers third-party losses. This way, any incidence of damage, whether to your vehicle or a third person, your insurance policy covers it. Apart from accidents and repairs, a comprehensive plan offers coverage against natural and human-made calamities. Further, its range can be increased by selecting the right add-ons that provide significant scope for a marginal price.
The transfer process of car insurance is explained.
Car insurance is a compulsory requirement and not an option. It would help if you got the policy transferred to your name as soon as the sale transaction is complete. As a buyer, you are not always required to purchase a new insurance policy. The previous owner can transfer their insurance policy to your name. This will ensure all rights and liabilities regarding the vehicle are now in your name. A new proposal form for transfer must be submitted to the insurance company. Also, documents evidencing the transfer, like the sale deed and the modified registration certificate, must be furnished. On verification of these documents, the insurance company passes the endorsement.
Pointers to remember when transferring your car insurance policy
Ensure your policy is assigned within 14 days of moving your vehicle’s title.
For that, you shall be required to submit Forms 29 and 30 along with your proposal form to the insurance company. These forms need to be signed by the seller of the vehicle.
At times, the new registration takes time to reach you. So, the above forms are sufficient to initiate the transfer process on your insurance document. Lastly, no claims are paid when the transfer of the registration certificate is in progress and is only paid once the transfer is complete.
How much car insurance coverage do you need?
You can buy comprehensive or third-party car insurance online with the digital revolution. Myriad plans do the job, but selecting one depends on your requirements. Thus, an insurance policy for your friend may not be suitable for you. A third-party policy only provides for coverage from injuries and damages to the property of a third person. On the contrary, a comprehensive approach offers vehicle coverage and third-party coverage.
Remember these above pointers and get the insurance policy transferred to your name. Also, a car insurance calculator can help you select coverage requirements to check your insurance needs.
