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What Happens to Your Car Insurance When You Sell Your Car?

By Finserv MARKETS - Jan 30,2019
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What Happens To Your Car Insurance When You Sell Your Car?

If you are planning to purchase a new car and sell your old one, you need to keep a number of things in mind. You will need to carry out market research to estimate the market value of the car and then pick the place where you want to sell it. You would also need to figure whether you want to advertise it or sell it to a dealer? If you want to sell it to a local mechanic or to a pre-owned car market? One of the crucial factors to consider at the time of sale is the car insurance plan.

Car insurance is very much mandatory when you buy a car. Both the parties need to be aware of the existing car insurance policy before they make a deal. An insurance plan can make or break your deal.

For a seller, the policy should be transferred in the name of the buyer at the time of sale of the car. The seller should make it a point to claim the certificate of no claim bonus at the time of transfer. The NCB certificate is non-transferable from the seller to the buyer. It is valid for a period of three years and will be applicable to the new policy bought for a different car during this period. It remains applicable even when you switch to a new insurance company. You can buy car insurance online by simply comparing the quotes offered by different insurance companies.

For a buyer, it is important to apply for the transfer of ownership of the car insurance plan within 14 days of the purchase of the car. If delayed, there is a possibility that the buyer’s claim may be rejected.

What is the procedure for the transfer?

In order to transfer the policy, the seller is required to inform the insurance company in writing that he is willing to make a transfer. There will be a nominal fee applicable for the transfer, along with the recovery of the no claim bonus form from the date of transfer to the expiry of the policy.

If the buyer is keen on buying a fresh insurance policy instead of continuing with the one that was transferred, it is advisable to compare insurance quotes and choose the one that offers the most competent coverage.

We, at Finserv MARKETS, offer comprehensive auto insurance policies at affordable premiums. We also provide an easy no claim bonus transfer and a cashless claim settlement to ensure that you have a rewarding customer experience.

“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522