There are often cases where second-hand car owners claim insurance without transferring the insurance policy to their name. In such cases, it is not possible for the insurance company to payout 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 for this concern.
Car insurance – A mandatory requirement
The Motor Vehicles Act makes it mandatory to have a valid third party motor insurance policy for vehicle owners. This is true whether you have a car or a bike, for private or for commercial use; motor insurance is mandatory. Third-party car insurance is the minimum requirement for all car owners, however, it can be increased to a comprehensive policy. A comprehensive car insurance cover provides own-damage coverage along cover for 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, as well as, man-made calamities. Further, its coverage can be increased by selecting the right add-ons that offer significant coverage for a marginal price.
Transfer process of car insurance explained
Car insurance is a compulsory requirement and not an option. You need to get the policy transferred to your name as soon as the transaction of the sale is complete. As a buyer, you are not required to always purchase a fresh 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 fresh proposal form for transfer is required to be submitted to the insurance company. Along with it, documents evidencing the transfer like the sale deed, and the modified registration certificate are required to be furnished. On verification of these documents, the endorsement is passed by the insurance company.
Pointers to remember when transferring your car insurance policy
Make sure your policy is transferred within 14 days of transferring the title of your vehicle.
For that, you shall require to submit Form 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 registration certificate is in progress and is only paid once the transfer is complete.
How much car insurance coverage do you need?
With the digital revolution, now you buy comprehensive or third party car insurance online. There are myriad plans that 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 property of a third-person. On the contrary, a comprehensive policy offers coverage for your vehicle along with a third-party cover.
Keep these above pointers in mind and remember to get the insurance policy transferred to your name. Also, a car insurance calculator can help you in selecting coverage requirements to check your insurance needs.