You may wonder how to sell a car without car insurance if you aren’t going to drive it, are selling it, and aren’t too keen on investing the time and money to insure it because selling your car involves a transfer of ownership. And in this case, a certificate of insurance is essential.
According to the Parivahan website of the Ministry of Road Transport and Highways, transferring ownership of a vehicle typically happens in one of the following three ways:
- During a typical sale
- If the owner passes away
- When it comes to public auction
In these three instances, the vehicle’s Certificate of Insurance is mentioned under the Required Documents section. Therefore, the transfer of insurance is an essential component of the transfer of ownership. As a result, selling an automobile without a current car insurance policy is not advised.
Reasons To Sell A Car With A Current Insurance Certificate
- Legal Aspect
Technically, an automobile is considered sold when the new owner’s name appears on the Registration Certificate. The transfer of ownership cannot be performed without insurance, as was stated in the section before this one. You require current insurance coverage in order to be able to transfer property legally. *
- Transitional Period
The organised used car market has made selling a car easy and convenient, but selling your automobile all at once might only sometimes be feasible or profitable. Before signing the contract, you should assess a few potential purchasers and determine where you can receive the most excellent offer.*
- Insurance Protection
Let’s say you make the decision not to drive and not to renew your car insurance. The buyer will be invited to your garage, where the car is kept, and you will sell it. Let’s assume, unfortunately, that your neighbourhood floods, aside from your garage. Now, there will be some car damage occurring. It would help if you bore the repair costs out of your pocket because there is no insurance coverage.*
- Road Test:
A potential customer comes up to you for a test drive. You comply. You drive outside in the car with the buyer. Unluckily, the potential buyer causes a collision. The insurance provider will not cover the costs of the repairs because your vehicle is uninsured. Therefore, even considering selling your car, be sure you have adequate insurance coverage.*
- Financial Sanctions:
Consider a scenario where you are taking your car to a licensed used car dealership to sell it without insurance. You ignore the traffic signal while travelling. A police officer approaches you and requests the standard documents, including your insurance, pollution under control (PUC) certificate, and registration certificate.
- The Balancing Act:
You are now aware of the risks of not renewing your auto insurance before and during your vehicle’s sale. But since you will be using the automobile less frequently than you formerly did, you also want to make sure you spend less on insurance.
A car insurance premium calculator is a tool you may use online to determine the amount of coverage needed based on your requirements.
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
