Know About the Used Car Ownership and Insurance Transfer

Many of us buy a used car for various reasons. For some it is because of financial constraints that they cannot afford a brand new car. For others a used car fulfills a second mode of conveyance as they already have one car. Moreover, used cars let us buy premium model of a car at lower rates too. Buying a used car has also been simplified as dealers have gone online where you can select a car of your choice from the comfort of your own home. You also get used car loans for buying a used car. Though buying a used car is easy, do you know the formalities involved in getting the ownership and insurance on the car transferred?

Buying a used car is not that simple as you have to take care of the technical and legal matters too. You have to get the car transferred in your name on paper and also get the car insurance policy transferred. Do you know how to go about transferring the ownership and insurance of a used car?

Transferring the ownership: After you buy a used car you have to get your name in the Registration Certificate of your car. To do this you have to get the changes done from your local RTO. You have to inform the RTO, submit proof of purchase of the car and the registration transfers in your name and you become the owner of the car.

Transferring insurance: When you buy a used car, the third party insurance cover of the car automatically shifts in your name. It then continues for the remaining period of the existing insurance policy. However, for the own damage cover, you have to get it transferred in your name. To do so, here are the necessary steps:

• The existing owner of the car would have to make a declaration stating that the vehicle had been sold.
• You, after getting your name added in the Registration Certificate have to approach the insurance company to apply for the own damage cover. This should be done within 14 days of getting your name added to the Registration Book.
• You would have to submit the old Certificate of Insurance, the Registration Book and pay a fee for the transfer.
• If the existing premium of the own damage cover was discounted due to the old owner’s NCB, you would have to pay the proportionate NCB discount as you are not entitled for the NCB which the old owner enjoyed. However, if you have a NCB in any existing vehicle in your name you can use the NCB to reduce your premium.
• After you have followed these steps, a fresh insurance policy would be issued for the remainder of the period.

This is how you get the pre-owned car transferred in your name both in terms of its ownership and also the insurance cover associated with it. So, the next time you buy a used car know the formalities associated with transferring the car’s ownership and insurance so that you don’t get entangled in legal hassles later on.

Choose wisely!

Also read: Difference Between Own Damage and Third Party Car Insurance Policy

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