When you buy or sell a car, you should be aware of what you need to do with your existing car insurance cover. Not many people know that the policy can be transferred from one vehicle to the other. So, don’t sell your car without getting the insurance work done first. Read on to know more.
What happens to car insurance when vehicle is sold?
Let us assume you are selling your vehicle. You have to get the motor insurance plan transferred. The plan will get transferred to the new owner’s name, but you can use any bonus that you have on it. This is important to, especially if you have a lot of NCB lying in your kitty. You can get the applicable discount on the new car insurance online policy when you use your accumulated NCB. The NCB is a reward you get for being a responsible driver. This is the reason why it is allowed to be transferred from the insurance plan of one vehicle to the insurance plan of another vehicle, driven by the same person.
What happens when you buy a used vehicle?
The car insurance policy can be transferred between vehicles. So, when a car is sold, the policy continues with a change in ownership. As the new owner of the vehicle, you must complete the formalities between 14 days of purchase of the vehicle.
How to transfer car insurance?
You can transfer car insurance online. The process is very simple. As the new owner of the used vehicle, you can complete the formality online. Just inform the insurance provider about your willingness to continue with the same plan. You will be asked to submit some documents to prove your ownership. You will then have to pay the fees and updated premium and the plan will be transferred to your name. If you have some accumulated NCB lying, tell the insurance provider about it and get the rates adjusted accordingly. You can then continue with the cover and renew car insurance when needed. Note that different insurance companies might have a different process for this activity.
Points to remember when transferring car insurance
· Evaluate the cover: Insurance needs differ from person to person. So, the old car owner’s insurance plan may not suit you or your requirements. Evaluate the plan and its features carefully to understand how well the policy will cover your vehicle and your other needs. If you feel its insufficient, cancel it and get a new car insurance plan.
· Compare: Before you buy a new plan, compare your options, and check car insurance quotes. You must look for a good plan that offers comprehensive cover at an affordable rate. Compare the different motor insurance plans online to see which insurance has the best deal on offer. Remember to compare even when you renew car insurance to ensure you have the best cover at all times.
· Transfer the bonuses: If you have some bonuses like an NCB in your account, do get it transferred to your new plan. You can transfer your NCB to an existing plan or a new plan.
· Renew on time: Never forget to renew your car insurance plan when you buy a vehicle. You need to have an active motor insurance cover for as long as you have a vehicle. So, renew on time and stay protected always.
The final word
Keep the points mentioned above in mind and get set to have a smooth car insurance transfer when you buy or sell a used car. The process is simple. However, you need to be cautious and ensure you have the best possible cover. Evaluate, compare, check car insurance quotes, and then make a final decision. This will help you to have the best plan at the best rate.