Top 5 Things to know about Insurance When Selling your Car

You have been driving your present vehicle for quite a few years and around the corner there is a fresh model Or you want to upgrade to a Sedan or SUV from a Hatchback. These are some prevalent thinking procedures that are regularly faced by many vehicle owners. They would like to maintain it with them for those who have an extra parking lot and someone else to use the current vehicle. Others, the only choice is to sell the old car well.There is plenty of scope for second-hand vehicles in a fast-developing nation like ours. If you’re willing to sell your existing car, finding a buyer for the same wouldn’t be too hard. There are numerous vehicle selling services on the market, which makes buying the vehicle simpler for you. However, while selling a current vehicle, there are a few things you need to maintain in mind.Things like transferring the records to the new proprietor or the dealer, the vehicle’s registration certificate, etc. However, your insurance is the most significant element of selling your car insurance. Whether selling the old car is the excitement of having your fresh vehicle or a feeling of urgency, we tend to overlook the insurance portion of it.

Here are the top 5 things you need to understand about your old car’s insurance.

• Insurance Transfer

When you sell your old car, the insurance goes along with it. Since the insurance is linked to the car’s owner, the same must be transferred to the new owner. While this has nothing primarily to do with you, you can always ask the new buyer to transfer the policy to their name. Depending on your insurer and the rules and regulations they have set, you may need to write a letter to the insurer requesting the transfer.The customer of the new vehicle may have to pay a nominal insurance transfer fee. He or she can use NCB on a pro-rata basis from the date of the transfer until the expiry of the policy.

• Type Of Policy

The type of policy you had for the previous car is also an important factor to consider. Being aware of the type of policy will make things easier during the process of selling. You can buy two distinct types of policies, either a third-party liability or a comprehensive policy.A third-party liability policy is barebones car insurance covering any damage to third-party persons or property. The plan includes either property or individual damages or accidents. Whereas a detailed plan involves a cover for third parties and adds its own element of harm.

• NCB

No Claims Bonus is a discount offered by insurers as smooth drivers to policyholders. If a policyholder fails to assert the policy within a policy period, they can take advantage of discounts beginning at least 20 percent for a year and up to 50 percent for five years. It is important to note that the driver is awarded the NCB, not the vehicle.Therefore, you can retain your NCB when you sell your old car. Then you can use this on the insurance of the new car and bring down its premium. You just need to ask your insurer for a NCB certificate. A few things to remember are, you can’t transfer NCB across different car categories, i.e. you can’t transfer the NCB from your hatchback to your fresh SUV.You can also maintain your NCB for 2 years. But as stated above, you need to get your insurer’s NCB certificate.

• Duration

You can pass the policy to the buyer when you sell your old car. However, for you to get the policy transferred, there is a brief duration. The transfer window stays open from the date of sale for 14 days. The dates that are regarded for the transfer are the dates on which the RTO has transferred the registration.

• Premium Calculation

The calculation of your vehicle insurance premium relies on a number of variables. In reality, if they see distinct quotes for the same vehicle from distinct insurers, one should not be amazed. Some variables that decide the premium are the insured declared value of the vehicle, any discounts on offer, personal accident cover, etc. 

The above are some of the stuff you need to understand about selling your vehicle insurance.

To know more about Mutual Fund, you can visit our website http://www.jayantharde.com or contact our representative at +91 712 2282029 or meet us at 51, Gurukripa, Old Sneha Nagar, Wardha Road, Nagpur – 440015.