Can the insurance remain untransferred after the car ownership is transferred?
3 Answers
Yes, as long as you drive normally, the insurance company will still process claims. However, since the beneficiary is different, it is recommended to transfer the insurance along with the car ownership during the transfer process. Below is relevant information about car ownership transfer: Definition: Car ownership transfer refers to the process of changing the registered owner of a car from the original owner to another person. This falls under the scope of used car transactions and must be handled according to used car transaction procedures. Required Documents: The documents needed for car ownership transfer include the original owner's ID card, new owner's ID card, vehicle license (original and copy), purchase tax certificate, vehicle and vessel tax payment proof, vehicle registration certificate, vehicle inspection report from the criminal investigation department, and insurance policy. All documents must be provided in original.
The car's ownership was transferred but the insurance wasn't? That seems a bit risky to me. For example, if you get into an accident while driving and the insurance company checks the policy only to find it's still under the previous owner's name, they might refuse to pay out because insurance is tied to the owner. That could spell trouble—you'd have to pay for repairs out of pocket and might even end up in a dispute with the original owner. I once knew someone who got burned by this: they hit another car, the insurance company denied the claim, and they had to cough up tens of thousands to cover the damages themselves. So, when transferring car ownership, it's best to transfer the insurance at the same time. Just visit the insurance company to fill out a form—it's quick. Nowadays, you can even do it online: download an app, upload the necessary documents, and it's sorted in no time. Much less hassle.
Not transferring the insurance is a no-go. Having driven for decades, I know that when a car changes hands, the insurance must follow suit. Car insurance covers the vehicle, but if the owner changes and the policy isn't updated, insurers can easily deny claims. For instance, my neighbor once sold his car without transferring the insurance. The new owner got into a minor scrape within two days, and the insurer refused to pay, citing mismatched policy names. It took months to resolve and nearly ended up in court. Beyond that, there's also the risk of fines in some regions because regulations require accurate insurance information. My advice: transfer the insurance immediately after the car title changes. Bring your vehicle registration and ID to the insurer or call them—don't cut corners to avoid future headaches.
