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HomeFeatured ArticlesGoMechanic InformativeHow To Transfer Car Insurance Policy For A Second Hand Car

How To Transfer Car Insurance Policy For A Second Hand Car

Massive surge in second hand car sales

The market for second-hand vehicles has been booming since last year. It has been thriving so much that a Frost & Sullivan report stated that the sale of second-hand cars in India is higher than the sale brand new cars. In fact, buying a second-hand cars can be a smart move. Keeping in consideration that durability is one of the perks of modern technology cars. Over the course of this blog, you will read how to execute a hassle-free transaction with the seller keeping in mind all the paperwork. Mainly, talking about how to transfer car insurance policy for a second hand car.

Must Read: Second Hand Car On Your Mind | Here’s What You Should Know

4 questions you should ask before buying a second hand car

These are 5 questions you should check before buying a second hand car:

  1. Whether the owner has all the car documents?
  2. Are all those car documents original and not falsified to rev up the vehicle’s rate?
  3. Is the seller, the original owner of the car and is not reselling it for the second time?
  4. Has the owner paid all the dues including road tax?

Be doubly sure that the owner provides all the documents including:

  • The original invoice, NOC (No Objection Certificate) from the car loan provider
  • The road tax receipt.
  • The car’s transfer is in effect when you and the seller sign on RTO (Regional Transport Office) Form 29 and Form 30.
  • Further, the seller must submit Form 28, which is the NOC for the transfer of the car.

Also Read: Car Insurance | Everything You Need To Know

What are the documents you should check before buying a second hand vehicle?

  1. IDV of the Car: Check the car’s Insurance Declared Value or IDV in the policy, it will help you to estimate the price of the vehicle when being resold. This, in turn, can help you negotiate with the seller if he/she is hindering the price for a higher profit.
  2. No Claim Bonus (NCB): Be sure to track the No Claim Bonuses over the past 2-3 years, doing so can help you know if the car is in good shape or not. The higher the NCB percentage the better. As frequent claims of the insurance would mean that the vehicle has been frequently in accidents and is requiring repair.
  3. Original Invoice: Check whether the owner is providing you with the original invoice of the car or not. As the original invoice will help you determine the purchase date and hence the corresponding date of buying the insurance.
  4. Form 32 & 35: Check form 32 & 35 to ensure that there are no pre-existing pending loans on the second-hand car you are buying.

How do I transfer the ownership of a vehicle?

Getting name changed on your insurance policy is as important as getting ownership transferred in your Registration Certificate. If your name changes on the RC and not in the insurance policy then claiming policy is useless. The process to transfer the insurance policy should be done within 14 days after the transaction. A few documents are required to transfer the ownership of the insurance policy –

  • Proof of sale of car: Original invoice and copy of receipts 
  • Proof of delivery of the vehicle to your possession: Transferred Registration Certificate in your name.
  • Cancellation of previous ownership: Make sure that the previous owner has cancelled or requested a cancellation of the previous policy. In order to issue a new one in your name.
  • Form 29/30: The photocopy of the receipts/form 29/30 can be used to apply for the name transfer on the second-hand car’s insurance policy. 

Any insurance company, an agent of the company or a broker can execute the process for you

Can you transfer a vehicle without insurance?

In some cases, the owner does not possess the insurance and the buyer has to get a new one issued. In such cases, the buyer has to fill an application for a new car insurance policy as it is mandatory, there’s no way around it. Before issuing a new car insurance policy the company would do a quick inspection of the vehicle. Then give out the insurance policy according to the condition of the vehicle.


We hope the above insights have proved helpful to you. So before buying or renewing your insurance policy, do your homework by making use of online and offline resources and service providers. Do not just rely on your common sense to deal with the seller while buying a used car. Therefore, ensure that you have the right insurance to safeguard the vehicle, yourself, and those who may ride in your automobile.

Dhiren Chhikara
Dhiren Chhikara
Content Strategist at GoMechanic | Delhiite | Love Football | OnePlus Fanatic | Know a thing or two about cars.


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