Transfer of insurance is a must while buying an used car

The market of used car in India is thriving of late. There is an array of reasons that have triggered such rapid growth. Most importantly, used car market helped middle-class and lower-middle class people achieve their dream of buying a car. Furthermore, this market also helped people purchase expensive luxury cars at an affordable price.

A recent survey revealed that an increasing number of people are on the lookout for used vehicles these days. The demand for used motor is a whopping 1.5 million every year in India. Automobile manufacturers also have realized that the market of used vehicle is booming and have enough potential to generate high revenues.

If you are seeking an used motor in good condition, there is a good chance that you get a good deal if you can shop around. However, you should also be aware of the downsides of buying pre-owned vehicles. These automobiles, more often than not, don't come with OEM parts or necessary documents regarding taxes and insurance and warranties.

Certified used car showroom

In a bid to curb this issue, automobile makers have not only called for certified used car outlets all over the country but they have also made it essential for dealers to come up with used motor showrooms. These showrooms have proved to be highly beneficial for both vehicle sellers and buyers. These outlets provide sellers with many value-added services.

• They get the best price available in the market.
• Experts examine their motors intensively
• They are also entitled to choose any other vehicle from the car-maker range.

Buyers on the other hand, are also provided with a lot of services as well. They receive insurance, warranty on the used vehicles that are minutely checked by experienced and trained technicians.

If you are planning to buy an used car, the present scenario will surely make you feel delighted. With the advent of certified used car outlets you can always fancy buying a previously owned vehicle in good condition and at a much-reduced price. Wait, are you aware of the laws regarding the transfer of policy while buying an used motor?

A valid policy is mandatory for any vehicle in India because, should any accident occurs insurance companies pay the repair charges only if there is an authentic policy on the vehicle. If the concerned vehicle is not insured at the time of a claim the insurance organizations can rightfully deny claims regarding repair costs. And the same goes for used automobiles as well. Transfer of car insurance needs to be done within 14 days after the transfer of ownership. New owners will not receive any claim if the policy remains in the name of the previous owner. New owners need to be mindful of the fact that policy does not automatically transfer at the time of ownership change. And, it is the responsibility of the new owners to check and ensure that the policy is transferred in their names. The policy transfer can take place parallel with ownership change because new owners can provide same set of documents to the Insurer.

An incident in the capital of India has proved the significance of car insurance transfer of used vehicle. The new owner, residing in South Delhi bought an used car but didn't have the policy transferred in his name. When the vehicle met an accident the insurance company denied his claim since the policy was in the name of the ex-owner at the time of mishap. After a long legal battle, the State Commission found the new owner guilty of not transferring policy in his name within 14 days of ownership change and finally the new, suffered owner didn't get any claim whatsoever. By now, you must have realized that any negligence regarding car insurance transfer can proved to be very costly.

You need to gain some information on how used motors are sold and bought in India so that you can avoid any legal issue in time of any mishap. In simple words, an owner sells out his or her used vehicle to the dealer and receives either a new or an used motor in return. However, dealers usually are reluctant to be the owner and they generally waits until the vehicle is sold again so that the policy can be shifted to the current owner. Hence, all buyers and sellers need to streamline the car Insurance formalities. This will help both of them avoid any complication due to the negligence of dealers.

Most motor owners in India tend to overlook the importance of having an authentic insurance. And this kind of negligence and over-dependence on agents can proved to be fatal because agents do take advantage of unsuspecting customers. An increasing number of people are nowadays on the lookout for used vehicles. Hence, they should be aware of the correct information pertaining to car insurance so that they can take necessary action at the time of buying an used vehicle and avoid unwanted legal hazards and financial loss.