In the modern world, owning a car insurance policy is necessary. This is due to the numerous safety hazards present on the roads. This has anything to do with the rise of vehicles and resulting traffic. Unexpected accidents are covered by insurance coverage for both your vehicle and the third party’s vehicle. *

It’s crucial to remember that third-party car insurance is required in India for all vehicles, new or used. In addition, there are various insurance policies available in addition to the one that is required that provides comprehensive coverage with add-on options to tailor your protection to your unique needs. It is also important that you do not forget to follow the process for your car insurance renewal.

While purchasing motor insurance coverage online for a brand-new car is simple, there is a procedure in India for insuring used cars, which also lets you know what is covered in car insurance.

What is insurance for used cars? 

A type of motor insurance policy called used car insurance coverage is designed to safeguard pre-owned vehicles. It shields a car against sporadic dangers and difficulties that could potentially result in significant harm or loss.

It is crucial to remember that moving states necessitates re-registering the used car with the (new) neighbourhood RTO within thirty to ninety days of the move. The actions required to transfer ownership and buy motor insurance for your used car in India are described in the sections that follow.

Indian procedure for transferring used-car insurance *

  • The current RTO must issue you a No-objection certificate (NOC) confirming your transfer. 
  • You must also get a NOC from the bank if the vehicle has any bank obligations. 
  • Then, to start the transfer procedure, deliver the required papers to the current RTO: 
  • Application for the transfer of the NOC between states 
  • Certificates for registration, insurance, taxes, and pollution under control (PUC) 
  • The vehicle’s original chassis imprint 
  • CMV form 28 in four copies. 
  • The procedure might go more quickly if you get a NOC from the police. 
  • Additionally needed is a NOC from the traffic police confirming “no culpability.” 
  • You can drive your car to the new state without any fear if you follow the aforementioned approach. After presenting all the transfer documentation, you must re-register the automobile with the neighbourhood RTO.

Again, these are the primary documents you will need: 

  • To register the number, use forms 29-30. 
  • A duplicate of the genuine RC. 
  • A copy of the car’s insurance coverage. 
  • A duplicate of the NOC that was acquired from the prior RTO. 
  • A duplicate of the PUC or emission test certificate. 
  • Vehicle’s original chassis imprint. 
  • A copy of the id card of the new owner and documentation of the local address. 
  • Receipts for applicable fees. 

Once the ownership has been transferred, you must submit an endorsement request to the vehicle’s insurance provider in order to change the policyholder’s name to yours. 

Consequences of not transferring insurance when purchasing a used automobile 

  • Only the policyholder may file an insurance claim in the event that the vehicle is involved in an accident. This means that unless the insurance policy is in your name, the insurance company will not consider your claim. 
  • Again, because you are not the legitimate policyholder, you would not be able to obtain medical expenditures coverage from the insurance policy covering the vehicle. 

“Tomorrow is a mystery,” they say. Therefore, it is advisable to follow the proper procedures after buying a used car. Furthermore, there is no more expensive outcome for this process than having to pay for a future accident out of pocket. To protect yourself against financial losses, don’t put off purchasing a used car insurance policy.

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.


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