When you decide to buy a used car, maybe the transaction you do will not be complicated. But most people often miss the transfer of insurance policies from the previous car owner to you.
Then can car insurance be transferred to the new owner? Of course, you can, but it must be within 14 days of purchase. A car insurance transfer is a transfer of an insurance policy from the previous owner, who has ownership rights to the car.
The insurance transfer to the car owner must be made in 14 days. If within 14 days, there is no transfer of the insurance policy, the transfer of automatic insurance will be canceled by the insurance company.
So that you, as the next car owner, will not be able to claim an insurance policy that the previous owner previously paid.
How to Transfer a Car Insurance Policy to a New Owner
As a seller, transferring the insurance to a new owner is a crucial step.
Because this is also regulated by the law of the transportation department, which states that the seller must be responsible for transferring the insurance policy to the buyer or new owner.
If you are a used car buyer, ensure the insurance policy has been transferred to your name. Here are the steps you must follow to transfer insurance to the new owner:
- Verify all documents before transferring the insurance policy
- After transferring ownership of the car is complete, immediately apply for the transfer of car insurance according to the specified period.
- Choose a comprehensive insurance package.
- Submit all documents and forms 30 and 29. Also, submit the sale deed so the insurance policy transfer process can run quickly.
- The insurance company will survey to assess the vehicle you have sold to its new owner.
- After the assessment process is complete, the policy is immediately transferred to the buyer’s name.
Documents Required for Car Insurance Transfer
Can car insurance be transferred to the new owner? Of course, you can as long as all the documents are complete. This is why you should buy a used car with complete documents.
Here are some documents that need to be prepared in the insurance policy transfer process:
- Car Registration Certificate
- RTO term signs of writing forms 30, 29, and 28 must be signed by both the seller and the buyer as proof of the transaction.
- Certificate of no objection made by the previous car owner
- Buyer’s address
- Photocopy of seller’s and buyer’s passport
- Insurance policy documents
- Survey reports provided by insurance companies
If the above documents are complete, immediately apply for the insurance policy transfer to the new owner. If there is a question of whether the transfer of insurance policies is necessary for the seller, then the answer is necessary.
Because the insurance transfer is not only useful for buyers or new owners, if the insurance transfer process is not carried out immediately, the previous car owner must pay some of the insurance premium costs.
Purpose of Transferring Car Insurance Policy to New Owner
The process of buying and selling used cars is not simple. Because not only is the car given to someone else, but you also have to transfer all documents related to the car.
The transfer of this document must be done legally. This is the purpose of the insurance policy transfer process:
1. Future Protection
If damage to a third party, the insurance policy must be in the new owner’s name to file an insurance claim. If the policy has not been transferred, the new owner cannot claim and be held legally responsible.
2. Defending NCB
If you are a seller and have not submitted any claim during the policy term, the insurance company can give a bonus in the form of a discount for the next premium.
You can redeem NCB certificates which can give you a discount when buying new insurance.
That’s the answer: can car insurance be transferred to the new owner? The policy transfer process must be initiated immediately so the seller and buyer can feel the benefits.