Should You Insure Your Second-Hand Vehicle?

Every vehicle that you drive must have valid motor insurance. Without valid travel insurance it’s illegal to drive across the streets of India. Be it a plush new car or a second hand bike, third party liability insurance is mandatory. A motor insurance not just helps in keeping the legal liabilities at bay but also protects you from uncertain financial losses. If you are planning to buy a pre-owned vehicle, ensure all the documents are present. You also have to transfer the ownership of the vehicle and insurance as soon as you buy the vehicle.

If you have planned to buy a second hand car insurance India, it’s important to follow the below mentioned procedure for insurance transfer.

You don’t really have to look for brand new car insurance or hunt for multi-state car insurance when moving out of your existing state. Most of the coverage offered by insurance companies remains the same throughout India. If you have car insurance from another state, firstly you have to re-register your vehicle at the local RTO within 30-90 days of shifting. So the answer to the commonly asked question does car insurance transfer from state to state? Is yes, car insurance requires transfer from state to state, as every state abides by different rules regulations and policies to govern the motor traffic and regulatory. If you are still wondering on how to transfer second hand bike insurance or second hand car insurance?

Second hand car insurance transfer process in India

  1. 1. Obtain NOC (No objection certificate from existing RTO) informing about your transfer.
  2. 2. If you’re paying loan EMI for your vehicle, get a NOC from your bank.
  3. 3. Once you get the NOC’s you have to submit the below mentioned documents and declaration to the existing RTO office for initiating the transfer
  4. 4. Application requesting for NOC for interstate transfer.
  5. 5. Certificate of registration, insurance, tax, Pollution under control (emission test certificate)
  6. 6. Original Chassis Imprint of the vehicle
  7. 7. 3-4 Copies of CMV Form 28
  8. 8. You may also obtain and attach the no objection certificate from the police to speed up the process. Or else the RTO will give you a clearance form that you can get signed from the police department.
  9. 9. NOC from traffic police that there is no due of any fine for traffic violation etc.

Post receiving all types of clearances, you can now drive your vehicle or transfer it to another state smoothly. Once your vehicle reaches the new state, you once again have to re-register your vehicle with the new location RTO by providing all the transfer documents along with the main documents such as:

1.      Form 29-30 for re-registration of the number.

2.      Original RC copy

3.      Copy of Insurance of the car.

4.      Copy of the NOC you obtained in previous steps.

5.      Pollution under control /emission test certificate

6.      Original Chassis Imprint of the vehicle.

7.      Photo id and local address proof of the owner of the vehicle.

8.      Applicable fees like road tax charges.

Once the ownership is transferred just raise an endorsement request to the insurance company and transfer the insurance of the vehicle on your name.

Consequences of neglecting insurance transfer

  • In case the buyer’s vehicle gets involved in an accident, the seller will have to deal with the legal liabilities as policy is still on his name.
  • At the buyers end, if he/she met with an accident the insurance might not cover the medical expenses.

Never procrastinate on buying a second hand car insurance or bike insurance, instead buy it actively and safeguard yourself from financial losses.

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