It is not necessary to cancel old motor insurance after buying a new vehicle. Transfer is just enough..let us know how it can be done. What if you have motor insurance for your older vehicle and you bought a new one? Do we need to cancel the old policy and buy a new one? Can this wastage be avoided? Any solution for this..
Transfer of insurance to new vehicle…
If the new vehicle is similar type to the older one, we can just continue the policy. Company will decide the premium to be paid after adjusting the premium already paid. For this, you have to inform the company about the new vehicle, tenure of the policy and continuance, etc. if there is not much of a difference between the old and new vehicles, the insurance company will continue the old policy as it is.
In case of purchase of a second hand vehicle…
· The vehicle has to be transferred on your name and we make changes in registration as such. If the seller of the vehicle shows interest in transferring the insurance also, let us know how to do it.
· You have to apply to the insurance company about the purchase within 14 days of it.
· Vehicle registration details, transfer date, name of the old owner along with policy number and date of purchase of the insurance etc should be mentioned in the application. The company after making necessary changes in their records will issue a new policy in the name of the new owner.
No claim bonus not applicable…
The no claim bonus will not be applicable to the new owner. This benefit is limited to individuals and not vehicles and is an appreciation for driving the vehicle safely and the decrease in policy premium is possible only with no claim bonus. So, always get to know about this.
Own damage, transfer of package policy
· Permission from the old owner is required to transfer the own damage section to the new owner.
· The package policy is transferred to the new owner only after a duly filled and signed application with complete details is submitted. For this, the old insurance bond has to be surrendered to the company. If the original policy document is not given, a letter stating valid reason for it has to be written.
It is not a good decision to cancel insurance policy immediately after putting vehicle for sale. Always wait for the right time to cancel or transfer the insurance policy and you will know the right time by waiting.