A lot of people suffer financially when it comes to car insurance, especially the ones with second-hand cars. The reason being that the new car owner didn’t transfer the insurance to the name of the person he/she sold their car to. And if the new owner does not have their name on the insurance, it means that there is no valid contract between that person and the car insurance company. Hence, the new owner is unable to claim any damage done to the car or if an accident takes place!
After you purchase a car, you must get the insurance done within 14 days for full protection of your valuable asset. According to car insurance lake Charles based firms, if the same is not done under 14 days, the insurance company will not be held accountable for the losses incurred by the current owner of the car. They will neither be held responsible for third party damages nor their injuries.
What are the problems faced in the newly-purchased second-hand cars?
If the transfer of insurance is not done within 14 days, the first owner can send you a court order. That order will be for you to compensate for any damage done as the new owner. This becomes very problematic since the car is now yours but is insured under someone else’s name. Hence, it is best for both parties to get the second-hand car insurance transferred at the earliest.
Process of transferring the policy
Ensure that the insurance is transferred under the first 14 days of you being the second-hand car owner. Here are a few things that you must know:
- A fresh proposal needs to be made for the new owner and some forms are to be filled as well. These are to be filled and signed by the first owner of the car along with a copy of the transfer papers and the transfer fee. They are then sent to the insurance company who then passes the endorsement for the transfer to take place.
- A copy of the new RC given to you by the RTO will help you in resolving all the queries during the time of the claim in the future.
- In case the change of ownership does not show in the RC copy after all the formalities have taken place, you need to provide the proof of transfer to the RC at the time of filling the form to get the final claim.
- If the process of transfer of insurance goes on, the claim will not be repudiated. Instead, it will be paid after you provide the proof of transfer in the RC to the insurance company.
People think quite a lot before they decide to buy a second-hand car. Car insurance lake Charles situated professionals suggest that since many people do not transfer proactively, it leads to financial as well as legal troubles and you would want to avoid that. Hence, people who do agree to buy a second-hand car, select and analyze a lot of different car insurance policies. They also make sure that the transfer takes place in the stipulated period.
To find the best insurance company and the suitable insurance policy for second-hand cars, thorough research is of the utmost importance. This can be now done online nowadays by going through different plans and selecting the right one that suits and fits your coverage. Go on and make your process more comfortable and remove all the hassles by associating with a professional firm offering car insurance services. Only well-experienced experts can help you solve your case even with the minimal resources that you have.