Awareness is a positive attitude towards success
You shall never miss to transfer the insurance while going cheap second hand cars for sale as you don’t want to leave any loop holes. You might get yourself in a hassle if you don’t get it done as soon as possible.
Some insurance companies deals with the claims of second-hand car insurance where you as the owner of the car files a claim with transferring the insurance policy under your name. However, if there is no contract between you and the insurance company then the claim becomes inadmissible.
You can always get cheap second hand cars for sale with cash at hand purchase and even on lease. But this is another case. Here we are talking about the insurance policy associated with the second hand cars. It’s not just about purchasing it but also managing the insurance policy that comes along with it. When you don’t transfer the insurance policy under your name then you have no right on the claim.
Insurance policy and the contract
As mentioned before they will only pay your claim when they transfer the insurance policy completely. The insurance policy of a car is an agreement between the you and the policyholder. When there is no name of the new vehicle owner on the insurance policy then there will not be a valid agreement between the insurance company and you. So, any damage suffered by the you, is not cover up under the previous policy.
Insurance awareness for cheap second hand cars for sale
You must be aware of the insurance policy and the claims are necessary especially when you are about to purchase a second hand car. In the process of purchasing cheap second hand cars for sale, you would have to be very vigilant. It is important for people who are going to purchase a second-hand car to be careful about the transfer of insurance as it is a critical part of buying any vehicle. You cannot ignore this aspect as it is one of the major things that help you purchase a car.
If you have to sell your vehicle, even then you would have to fulfill the responsibility of transferring the insurance to the new owner. Doing this will make sure that you are not involving in any kind of legal hassles that might occur in the future if you do not go through the transfer process.
Get to know the insurance policy structure
Before you get into the insurance policy transfer, Make sure you know the insurance policy structure. It consists of two parts; third party and own damage. The third-party section covers up the damage caused to the third person by your vehicle as mandated by the law. However, the own damage section bears the expense of your vehicle from an accidental mishap.
After purchasing cheap second hand cars for sale, you get the insurance policy transferred under your name. You need to apply for the insurance policy transfer within 14 days of the exact purchase date. It is transferred to the third party section only.
The automatic transfer only applies to the third party section. When the new owner will get the policy registered under his name, only then the damage policy will be transferred. After 14 days, the insurance company will not bear any incurred losses; this applies for both parts of the policy.
Here are some points you keep in mind before transferring the insurance policy:
- You must transfer the policy under the new owner’s name within 14 days.
- Start with a fresh proposal and submit the sale evidence with registration certificate transfer, so the insurance company can approve the endorsement of transfer.
- The registration certificate transfer takes time for the change of ownership. You need to submit a copy of the Regional Transport Office (RTO) to avoid any mistakes during the time of claim.
- The registration certificate transfer proof takes longer to submit to the insurance company during the time of the claim.
- You cannot disclaim if the transfer is still in process. However, your claim will be made when it is complete.
Transferring the insurance policy can have a huge impact on the entire purchasing of cheap second hand cars for sale.
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