Never miss out 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 deal with the claims of second-hand car insurance where the owner of the car files a claim with transferring the insurance policy under his name. However, if there is no contract between the new owner of the second hand car and the insurance company then the claim becomes inadmissible.

You can always get cheap second hand cars for sale with a 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 the claim is not paid unless the insurance policy does not get transferred. The insurance policy of a car is an agreement between the insurer 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 him. So, any damage suffered by the new owner will not be covered under the previous policy.

Insurance awareness for cheap second hand cars for sale
Creating awareness on the insurance policy and the claim has become 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 involved 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, it is very important for you to know the insurance policy structure. A usual insurance policy consists of two parts; third part and own damage. The third-party section covers up the damage caused to the third person by your vehicle. It is usually 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, the new owner is supposed to get the insurance policy transferred under his name. The process starts by applying for the insurance transfer to the insurance company. If you have purchased a second-hand car then you need to apply for the insurance policy transfer within 14 days of the exact purchase date. Within the 14 days, the insurance policy gets transferred for the third party section only.

The automatic transfer only applies to the third party section of the policy not the damage section. When the new owner will get the policy registered under his name, only then the damage policy will be transferred. If after 14 days, the new owner somehow fails to get the policy transferred under his name then the insurance company will not bear any incurred losses. This includes no bearing of neither the third party section nor the damage section of the policy.

Here are some points you need to keep in mind before transferring the insurance policy:

⦁ Make sure you transfer the policy under the new owner’s name within 14 days.
⦁ Complete the entire process with ease. Start with a fresh proposal and submit the sale evidence and the registration certificate transfer as well so the insurance company can approve the endorsement of transfer.
⦁ The registration certificate transfer might take time for the change of ownership. Make sure you submit a copy of the new registration at the Regional Transport Office (RTO) to avoid any mistakes during the time of claim.
⦁ You will always have to wait for the registration certificate transfer proof to submit to the insurance company during the time of the claim.
⦁ The claim will not be disclaimed if the transfer in still in process. However, the claim will be made after the proof of registration transfer.
Transferring the insurance policy can have a huge impact on the entire purchasing. This can leave a huge impact on the purchase of cheap second hand cars for sale which is why you always need to be vigilant about purchasing a second-hand car and the policy transfer as well.