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When you sell your car, you need to ensure that the ongoing insurance policy is transferred to the new owner. It is important to make sure that the car insurance policy is transferred from the previous owner’s name to that of the buyer. The buyer of a second hand car should immediately initiate the insurance transfer process on obtaining all the documents of the said vehicle.

The car insurance transfer process can be carried out by the buyer through the insurance company. The liability part of the policy is deemed to be transferred automatically; however, the own damage cover is no more valid once the policy is transferred in the name of the new owner. What this means is that in case the vehicle is held liable for causing damage to a third party, the latter will be entitled to benefit from the claim. However, the new owner will not be able to make any kind of personal claim as it will be deemed invalid.

So, most probably, while your used vehicle stays road legal even if you do not transfer the insurance policy in the buyer’s name, not having the policy in his/her name might prove problematic to the buyer.

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