How to Transfer Car Insurance Policy

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You choose to purchase a secondhand automobile. The car’s registration certificate is transferred to your name, and that’s it!

But hold on! You missed a crucial step! You overlooked the transfer of insurance from the prior owner.

For both the buyer and the seller, a seamless auto insurance transfer to the new owner is crucial when selling a vehicle. Sadly, the majority of customers require assistance when changing their old auto insurance policy. So keep reading to learn how to transfer auto insurance to a new owner.

Understanding Car Insurance Transfer

As you may know, four-wheeler insurance protects a vehicle financially from unforeseen dangers like theft, accidents, and more. Keeping the auto insurance coverage is therefore useless if you no longer own the vehicle.

So, you must ensure that the new owner’s four-wheeler insurance coverage is transferred to their name when you sell your automobile. In the same way, be sure the prior owner transfers the active auto insurance coverage to you if you’re purchasing a used automobile.

Car Insurance Transfer formalizes one party’s exit from an insurance policy contract with another party’s consent. Significantly, both parties are required to transfer their auto insurance policies within 14 days after their acquisition under Section 157 of the Motor Vehicles Act.

How do you Transfer Car Insurance?

You should, as a buyer, take the effort to get motor insurance coverage for your automobile or motorbike. Nonetheless, the seller is required to ensure that the insurance transfer to the buyer is made in accordance with the law set by the transport department.

It is easy to transfer auto insurance. But before that, it’s critical to comprehend the paperwork required to transfer the title when buying a secondhand automobile.

  • Registration Certificate.
  • Car insurance policy

To transfer an existing vehicle insurance policy from one person to another, submit a transfer request to the motor insurance provider.

Now that you are aware of the paperwork needed to change ownership of a car, let’s go over how to change your insurance to your name.

Step 1Download Forms 28, 29, and 30 from the RTO’s website or office.
Step 2Fill out the form and submit it to the RTO with all the relevant paperwork (if any).
Step 3Procure the Clearance Certificate from the RTO for the completed forms and proof of sale.
Step 4Provide all required documents to the insurance company.
Step 5Pay the applicable fee (if any).
Step 6Get the policy bearing your name via email or courier.

Documents Required to Transfer Insurance

The following papers are required for transferring auto insurance, in addition to a transfer fee:

  • New Registration Certificate/Form 29
  • Old Vehicle Insurance Policy Documents
  • Former policyholder’s No Objection Clause (NOC)
  • New Application Form
  • Inspection Report (carried out by insurance company)
  • No Claims Bonus Difference Sum

You can submit an application for a name change on your automobile insurance policy together with the other documents if your Regional Transport Office (RTO) permits ownership transfers in the registration certificate.

But, if an insurance provider can’t get their hands on the transfer of the registration certificate, they won’t pay claims. As a result, as soon as you have a new RC, you must email it to the insurance provider.

Fascinating Information: In 1897, the first motor insurance contract was written.

RTO Documents Required for Car Ownership Transfer

To transfer ownership of the car, the following RTO paperwork is necessary.

Form 28This form is an application to secure the NOC from the applicable RTO.
It also proves that the seller is no longer liable for the car, which could block the transfer of ownership.
Form 29It serves as a notice to the registering authority or RTO that the previous owner is selling the car. In addition, the seller has turned over all vehicle documentation to the buyer, including the registration certificate, insurance policy, and Pollution Under Control (PUC) certificate.
Form 30This form is an acknowledgment of Form 29 that the car’s ownership must be transferred. Furthermore, the seller has passed the buyer all legal rights and responsibilities associated with the car.
Clearance CertificateThis document is necessary if you transfer the car from one RTO to another inside or out of the state. It holds details about the buyer’s and seller’s credentials and vehicle details.

Reasons Why Transfer of Car Insurance is Required 

There are two significant reasons for the need to transfer the Car Insurance Policy-

  • To Avoid Any Prospective Liabilities 

If an accident with your used car leads to third-party liabilities, you cannot file a third-party claim because the previous owner did not transfer the policy to your name. As a result, you will be on your own to settle off your third-party liabilities.

  • To Keep Your No Claim Bonus 

The No Claim Bonus is critical from a seller’s viewpoint. A No Claim Bonus rewards prudent policyholders who have yet to file a claim in a calendar year.

NCB is available in the form of savings on your damage premium. The longer you go without a claim on your auto insurance coverage, the higher the premium discount you are entitled to.

Things to Consider When Changing Auto Insurance

  • The vehicle’s registration number code will not accurately represent the original RTO. For example, look at the back of the RC in the lower right corner, where the RTO is mentioned.
  • Every RTO can register new vehicles. However, the process for transferring ownership differs slightly. The transfer of ownership application should be submitted to the RTO for the buyer’s residence area.
  • Form 28, often known as a No Objection Certificate (NOC), is not required when transferring ownership inside the state. Instead, the seller’s CC is necessary. When transferring ownership between states, three originals of Form 28 are required.
  • Every second Saturday of the month, RTOs may be closed.
  • On Saturdays, cash desks at RTOs may close at noon.
  • It is critical to make copies of all documents and bring the originals with you. Organizing the documents as needed will save you much time.
  • Keep some stationary on hand, such as pens, whitener, glue, staplers, etc., for last-minute updates/corrections.


Transferring car ownership can be simple if you take the appropriate measures. However, whether you are the buyer or the seller, you should keep copies of any important documents for future reference.

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