How to Transfer Bike Insurance from One Person to Another?
Are you thinking of selling your old bike to purchase a better model? Newer bike models arrive in the market every year, boasting impressive features and specifications. If your ride needs an upgrade, investing in a new vehicle might be the best option.
However, before heading to the market to hunt for a perfect two-wheeler to replace your current one, you must consider whether you want to sell your older vehicle. Selling a bike is always beneficial, as it allows you to recover a part of your considerable expense for the new ride. Further, you can always find consumers looking for second-hand bikes at reduced prices.
While selling your older two-wheeler, do not forget about transferring your insurance policy to the bike’s future owner. While most people remember to transfer their vehicle registration, they should also keep in mind the importance of bike insurance transfer.
Avoiding undertaking such a transfer can lead to significant legal hassle for both you and the bike’s new owner if the concerned vehicle is involved with accidents in the future.
What is Bike Insurance Transfer?
Bike Insurance transfer refers to transferring your bike insurance policy in the name of the bike’s new owner. Generally, such transfers are necessary when you are about to buy or sell an older two-wheeler.
You must alert your insurance company of such transfers of ownership. Doing so allows the insurer to update their paperwork accordingly to reflect that this bike in question has a new owner.
Why Should You Transfer Your Bike Insurance Policy?
Bike insurance transfer is vital because, without it, a new owner would be susceptible to litigation. Further, if the vehicle in concern is involved in a road mishap in future, your insurer will decline claims from the new owner if his/her name is not present on the policy papers.
If you are buying a second hand bike, make sure that its previous owner completes all insurance transfer formalities.
Without insurance payout, the new owner would need to bear the entire financial liability arising from such accidents.
Before proceeding to insurance policy transfer, you should officially transfer the ownership of the vehicle to its new owner.