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How To Buy Insurance For Used Car?

Updated On Oct 14, 2023

Get all your queries related to the insurance for your second hand car here!

Buying a used (second hand) car lets you fulfil the dream of owning a car at a relatively lower cost. Now, since the car belongs to you, the responsibility for its insurance also rests with you. The India Motor Tariff 2002 mandates every car owner to have at least a third party car insurance which insures him/her against all third party liabilities which may arise due to his/her car.

How Do I Buy Insurance For Used Cars?

When you buy a used car, either of the following two scenarios can be there:

  1. The used car has an active insurance policy
  2. The previous car insurance policy of the used car has expired and the break-in period of 90 days (the window in which an insurance policy can be renewed after inspection of the car) has also ended.

Let’s discuss in detail about the processes which you need to follow to get an insurance policy for your used car in the above-mentioned scenarios.

Scenario 1: The used car has an active insurance policy

In such a case, you need to get the old active policy transferred to your name from the previous owner’s name by following the steps below:

Step 1: Transfer of Registration Certificate (RC): The first and foremost step is to get the Registration Certificate (RC) of the car transferred in your name. The RC can be transferred by filing an application at the nearest (Regional Transport Office) RTO. This is important as a car’s RC serves as proof of its ownership.

Step 2: Filing of an Endorsement Form: The second step involves filling up of an endorsement form with the insurance company which has issued the policy, specifying all the details which need to be changed in the policy document. The details generally include the policyholder’s name, contact details, residential address, registered email id, etc. In case your RC transfer is in process, then you also need to submit the proof regarding the transfer along with the endorsement form.

Step 3: Transfer of Policy: After verifying all the submitted details by the new and old car owners, the insurance company will issue the policy document in your name (the new owner).

Scenario 2: The used car has an expired insurance policy

In case the previous policy of your used car has expired, follow the steps below:

Step 1: Transfer of RC: The transfer of RC is mandatory in this case too as it will serve as a proof of ownership of the new car owner.

Step 2: Purchase of a New Policy: Since the old policy has been expired, the new owner is required to purchase a new insurance policy under his/her name for the used car.

Important Points to Keep in Mind While Transferring Policy

Here are a few things that the new, as well as the old car owner, must not miss out:

  • The car insurance policy has to be transferred within 14 days of the transfer of RC in case the previous car insurance policy has not expired. The third party liability cover gets transferred automatically, whereas, the own damage part of the policy (if opted) needs to be transferred manually by the new car owner.
  • In case the policy is transferred before the transfer of the RC itself, the insurance company will put the claim amount on hold and will sanction it when the RC gets transferred successfully.

For further reading:

Everything About Insurance For Second-hand Car!


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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