Insurance is a pretty complex term and you cannot expect every individual to understand all of its terms in one go just by reading through the policy document provided by the insurer. Sometimes, these terms require you to go practical and live one or more scenarios to understand the need for an insurance policy – be it health insurance, travel insurance or even auto insurance.
Auto Insurance – Give it a Go!
Truthfully, when it comes to your beloved car, it is essential to have a comprehensive auto insurance policy. However, the decision to buy a comprehensive policy is not as easy as it may sound. You must give auto insurance comparison a go to end up taking a wise decision. Such a policy provides you with an assurance that your car will be taken care of even in extreme eventualities, such as fire, theft, accident, or certain other effects of natural and manmade calamities.
Significance of Insurance for an Old Car
There are times in life when you prefer buying an old car. One of these events might be that you did not have much of liquid cash or you had some other thing on your priority list. While transferring the Car Registration in your name, you must not forget Insurance since it’s mandatory for motor vehicles owners to have a valid auto insurance policy to legally ply on the roads nationwide. In fact, make sure to you get insurance transferred in your name right away so as to avoid the odds of any out-of-pocket expense,in case an eventuality occurs.
Transfer Insurance in Your Name
When it comes to transferring auto insurance in your name, there is a proper process that you need to follow. You need to identify the particular reason for which the vehicle is getting transferred. In fact, there can be many reasons. And, the following are the ways in which the ownership and insurance of the car can be transferred:
Ownership and Registration
You need to provide a set of documents in order for processing the transfer in your name. The ownership and insurance are not transferable without these documents. Therefore, you need to arrange these documents properly. In order to avoid any trouble, it is suggested to create a file or folder and keep all of your car documents.
Documents Required for Ownership Transfer
· A copy of the address proof of the buyer
· Original RC (Registration Certificate)
· Original Insurance Papers
· Seller’s affidavit and ownership transfer documents
· NOC (No Objection Certificate) from RTO (Regional Transport Office)
· Form No. 29 and Form No. 30
Documents Required for Insurance Transfer
· Application for TitleChange
· Original Insurance Papers
· Registration Certificate of the transferee (the new buyer)
Transfer Car from One Person to Another
The seller of the car needs to provide the original purchase invoice of the car. You can say, once the transaction is successful, the cargoes to a new garage and the money goes to a new bank account. Both the parties (seller and buyer) must sign the title.
Transfer Insurance from Old Vehicle to New
If you are willing to transfer your existing insurance from your old car to a new one, you need to inform your insurer about the same. In that case, you need to repeat the entire steps to make sure insurance is transferred successfully. At the same time, you keep the benefit of NCB (No Claim Bonus), which you receive from your insurer for every claim-free year.
No Claim Bonus Transfer
You need to transfer the NCB while transferring the insurance policy. For this, you will have to submit the agreement form signed by both buyer and seller with the request letter of NCB transfer enclosed. The NCB certificate issued by the insurer issues is valid for 3 years, which you need to submit to your new insurer. If you need to switch the while renewing insurance, you will need to provide your previous policy document.
Note: NCB is associated with the vehicle owner and not the vehicle. In other words, you do not lose on your NCB if you sell your old vehicle and transfer the insurance policy in the name of its new owner.
Shruti Gupta is a writer, marketer and outreaching expert .She writes about technology, startups & other niches. She has contributed to a number of famous websites like Thenextweb, Deccanchronicle and Crazyegg. Stay tuned with her at:@shruti_gupta01 or via Skype : shrutigupta2811