Selling your beloved car is more than just getting a good deal. It does not simply end with handing over the car keys to the buyer and collecting the payment. There are a lot of legalities and formalities involved especially when it comes to car insurance.
Though these days there is a lot of awareness and information available through car insurance online portals, there are some aspects which are not well-known. Read on as we share some tips to make this process smooth and easy for you.
- You can transfer car insurance to the buyer: At the time of selling your car, you can also transfer the car insurance policy to the buyer. Not only may it help you to strike a good bargain but also help you get rid of any future legal problems.
- Insurance transfer can take place only after ownership transfer is complete: As per the process, one can initiate the transfer of car insurance only once the ownership transfer has been duly completed. The following documents are needed for the transfer of ownership.
- Signed and notarized Sale affidavit
- Delivery note with the buyer’s signature
- The government authorized ID Proof of the buyer
- Copy of cheque or DD was given by the buyer
- Complete the transfer process at the earliest: Many times, people do not complete the insurance transfer at the time of selling their vehicle, as they feel that the process is cumbersome. However, it is extremely important to ensure all the documentation is duly completed. If not done properly, the seller can be held accountable for any issues or accidents associated with that vehicle. So, if you do not wish to bear the expenses for any damage caused by the buyer, make sure you complete the insurance transfer process within a period of 14 days of sale.
Know the RTO Forms you need to fill
- Form 28 (NOC Application)
- Form 29 (Transfer of ownership of vehicle)
- Form 30 (Report of ownership transfer)
- Additionally, one needs to submit a Clearance Certificate to inform the RTO that the car has been sold to the new owner. This document should contain details about the previous owner, the new owner and the vehicle details.
- Retain copies: Once all the documentation process is complete, make sure to retain a copy of all the forms with you. This will help you to easily establish that you have legally and completely transferred the vehicle to the buyer.
- Don’t lose out on your “No Claim Bonus”: So, you have taken good care of your car and luckily have managed to steer away from all the lunatics driving on the road. As a result, you have not made any claims from your car insurance policy. But what happens when you sell your car?
- Do you know that you can still continue to reap the benefits of the NCB? All you need to do is to keep a copy of the insurance policy and claim your “No Claims Bonus” at the time of purchasing the next car. You would also need to show the vehicle transfer copy (which mentions the name of the new owner) and the note of delivery. All these documents will help you lower the price of the car insurance premium.
- A small and timely effort from your end can actually help you save a lot of money. Especially now when the car insurance prices are going up every day.
- Take help of specialists: Last but not least, seek help if you feel bogged down by the formalities or documentation. There are numerous car insurance online portals which can facilitate this process for you.
So, whenever you wish to sell your car, make sure to follow these tips and get not a good deal but rather the best deal!