Can Insurance Purchased at a 4S Store for a New Car Be Refunded?
2 Answers
No. According to Article 16 of the "Regulations on Compulsory Traffic Accident Liability Insurance for Motor Vehicles": The policyholder may not terminate the compulsory traffic accident liability insurance contract for motor vehicles, except under the following circumstances: the insured motor vehicle is deregistered in accordance with the law; the insured motor vehicle is suspended; the insured motor vehicle is confirmed lost by the public security authorities. Below is relevant information: As stipulated in the contract: Before the termination of the compulsory traffic accident liability insurance contract for motor vehicles, the insurance company shall bear the insurance liability in accordance with the contract. Upon termination of the contract, the insurance company may collect the insurance premium from the date the insurance liability begins to the date of contract termination, and the remaining premium shall be refunded to the policyholder. If ownership of the insured motor vehicle is transferred, the compulsory traffic accident liability insurance contract shall be modified accordingly. Relevant requirements: The insurance company may compensate the insured or directly compensate the victim. However, as the rescue of injured persons requires the insurance company to pay or advance rescue expenses, upon receiving notification from the traffic management department of the public security authorities and after verification, the insurance company shall promptly pay or advance the rescue expenses to the medical institution.
When I bought my car at the 4S dealership, I also purchased insurance there. Later, I found out that it could be canceled, but there are conditions and time limits to consider. Generally, there is a grace period of about 10 days after purchasing the insurance. If you cancel within this period, you can almost get a full refund without needing to provide a reason—just contact the insurance company directly. The 4S dealership might not proactively inform you about this. If you cancel after the grace period, the insurance company may charge a handling fee or deduct the risk coverage costs, resulting in a smaller refund. To cancel, you’ll need to fill out an application form and provide the insurance contract and ID proof. Some companies may also require the original policy receipt. I recommend reading the policy terms carefully as soon as you receive them, especially the cancellation rules, to avoid being misled. Also, if you cancel the insurance, remember to purchase a new policy promptly to avoid driving uninsured—otherwise, the losses from an accident could be much greater. Additionally, canceling insurance leaves a record, which might lead to being assessed as a high-risk customer when buying insurance in the future. In short, cancellation is possible, but act quickly and don’t delay.
