Understanding The Car Insurance Transfer Process

Due to the increased demand for personal conveyance these days, used cars markets witness a consistent growth alongside new car markets. While the reasons to buy a car may differ from person to person, there are some things that every buyer must consider while going for a pre-owned car. The most important of all is insurance transfer. Vehicle insurance being a government mandate, you must ensure that your vehicle is adequately insured, irrespective of whether it’s a new car or a used car. So the transfer of car insurance is as essential as the transfer of registration certificate.

How to transfer the car insurance in a few simple steps

As per the existing norms, the insurance of a car should be transferred to the new owner’s name within 14 days from the date of transfer of registration. The failure to do so will affect the claim process and the new owner will not be able to recover the costs involved in repairs. The following documents are to be submitted along with a nominal fee of Rs.50 for car insurance transfer:

• Old policy document

• Form 29 or copy of new registration

• No objection certificate from the previous owner

• New proposal form

• Vehicle inspection report

• Documents to support no claim bonus recovery

Choosing the insurer

You can choose to insure your car with any of the insurers after purchasing it from the previous owner. With a plethora of offers and benefits available on car insurance, you must always compare the products before settling on any single policy. To make side-by-side comparisons of car insurance products, you can login to any of the comparison portals such as BankBazaar. The online broking firms also provide excellent customer support services to ensure that you get the maximum out of your plan.

Main points to consider while transferring vehicle insurance plan

• The insured declared value or the IDV of your vehicle is a key component in determining your premiums. The higher the IDV, higher will be the premiums.

• Check the discount and offers of different insurers before finalizing the insurance transfer.

• You will not be eligible for no-claim bonuses if you have purchased a used vehicle, since you will start afresh as a new owner.

• You can avail discounts if you are a member of the Automobile Association of India.

• Installing vehicle protection devices can often help you get a better deal on your car insurance.

• Choosing a higher deductible can reduce your vehicle insurance premiums.

• Check the claim settlement ratio of the insurer to know their market position and to have a better understanding of their after-sales services.