Can Insurance Be Transferred to the New Owner?
4 Answers
Commercial auto insurance can be transferred to the new owner after the used car is transferred. Transferring a used car without insurance: If the transferred vehicle has no auto insurance or the insurance has expired, the owner should purchase insurance as needed. Terminate the original owner's auto insurance contract and arrange new insurance for the new owner. Precautions for transferring auto insurance: When transferring auto insurance after a used car is transferred, both the buyer and seller need to bring the original insurance documents to the insurance company to change the policyholder information. Compulsory traffic insurance (CTPL) does not allow the original owner to cancel the policy but can only be transferred. Vehicles without CTPL cannot be transferred.
Yes, the transfer is possible. I personally handled it when I sold my car last time. After a used car transaction, the insurance must be transferred to the new owner's name, otherwise it will be troublesome in case of a claim. The process is actually quite simple: compulsory insurance can follow the car, and both the buyer and seller need to bring their ID cards, the new vehicle license, and the insurance policy to the insurance company to complete the modification procedures. Commercial insurance is a bit different—the original owner needs to cancel the policy first to get the remaining premium refunded, and then the new owner has to repurchase it. Remember to check the car's claim history before the transfer. My neighbor learned this the hard way—after taking over the car, they found out the previous owner had three unsettled claims, and the premium increased by 30% directly.
When I was dealing with used cars before, I handled the insurance transfer process. The fastest way is to go directly to the insurance company with the new owner, bringing the original vehicle registration certificate and ID card. The policyholder's name can be changed on the spot. Here's a money-saving tip: Transferring the insurance with the car is more cost-effective than canceling and repurchasing, because the original owner's no-claim discount coefficient can still be used. However, it's important to note that if the car has been involved in a major accident, the new owner may face increased premiums even after the transfer. After completing the transfer, remember to request the endorsement slip, which serves as proof of the insurance contract modification and may be needed for future claims.
From a risk perspective, not transferring the insurance poses significant hazards. Last year, I helped a friend deal with this issue—the original owner thought simply handing over the policy to the buyer was sufficient. However, during the vehicle annual inspection, the system flagged the insurance as untransferred, causing delays, and the car was even fined during a roadside check. The most critical practical point is the timing: the insurance change must be completed within 48 hours after the vehicle's ownership transfer is registered, otherwise, it's equivalent to driving uninsured. I recommend having the original owner contact the insurer in advance to confirm transfer eligibility, as some heavily discounted special policies may have restrictive clauses. During the transfer, the new owner should carefully check whether the policy continues the original owner’s value-added services, like the free towing service included in my car insurance, which was almost overlooked during the transfer.
