Can Insurance Be Transferred to the New Owner for Use?
3 Answers
Insurance can be transferred to the new owner for use. The following is a detailed introduction about vehicle transfer: 1. Overview: Vehicle transfer refers to changing the name of the vehicle's owner, which is an essential procedure in the process of buying and selling used cars. If there are issues such as car accidents, failure to participate in annual inspections, stolen vehicles, or smuggled vehicles, the transfer cannot be processed through normal procedures. 2. Precautions: When a vehicle is transferred from one city to another, the registration process required to change the affiliated vehicle management authority is called transfer of registration. Vehicle transfer of registration must involve changing the license plate and vehicle registration certificate, and the procedures should be handled separately at two vehicle management authorities, including the transfer-out procedure and the transfer-in procedure.
As a seasoned driver with over a decade of experience, I often get asked if car insurance can be transferred to a new owner when selling a vehicle. The truth is, it can't. Insurance is tied to the specific policyholder, so once you sell the car, the policy must be terminated. The insurance company will refund you for the remaining coverage period. The new owner needs to purchase their own insurance, providing documents like their ID and vehicle registration. Skipping this step to save trouble could lead to being pulled over by police—a few hundred yuan fine is minor, but driving uninsured in an accident could mean huge losses. I've seen many procrastinate and end up with major headaches, so I recommend contacting your insurer to cancel the policy on the sale day, and arranging new coverage immediately when buying. Don't count on policy transfer—that's just a misconception. Safety first, save time and worry.
As someone with some insurance knowledge, let me explain this matter. Insurance cannot be directly transferred to the new owner for use. After selling the car, the original owner needs to apply to terminate the policy and may receive a refund; the new owner must purchase new insurance and submit documents such as the vehicle registration certificate. The insurance company will assess the new owner's risk factors, such as driving record, to determine the premium. If not changed in time, the old insurance becomes invalid, leaving the new car uninsured, unable to claim in case of an accident, and possibly facing fines. The entire process can be handled online easily. It's best to prepare all documents before selling the car to improve efficiency and avoid problems. Additionally, some misleading advertisements claim that insurance can be transferred, but the actual operation is complicated and impractical. Buying new insurance directly is the right way to go.
