Do I Need to Repurchase Insurance After Vehicle Transfer?
4 Answers
Vehicle transfer requires re-registration of insurance. After the vehicle is transferred, you only need to provide the new vehicle license or vehicle transfer certificate to repurchase insurance. Below is extended information: Vehicle Transfer: Vehicle transfer refers to changing the name of the vehicle owner. Apart from checking the vehicle condition when buying a used car, the most important step is completing the transfer procedures. Introduction: Every vehicle has a fixed registration, similar to a person's identity. The vehicle registration mainly records the owner's name and address, as well as relevant vehicle parameters. A transferred vehicle proves that it belongs to the new owner and has no accidents or violations. Vehicles that are not transferred usually have issues, such as being involved in accidents, failing annual inspections, being stolen, or being smuggled, and cannot undergo normal transfer procedures. Vehicle Relocation: When a vehicle is moved from one city to another, the process of changing the registration to a different vehicle management authority is called relocation. Vehicle relocation requires changing the license plate and vehicle license, and the procedures must be completed at both the original and new vehicle management authorities, including the transfer-out and transfer-in processes.
I've been driving for over a decade and have transferred vehicle ownership three or four times. Every time after buying a car and completing the ownership transfer, the insurance must be repurchased. This is because auto insurance follows the owner—the original policy is tied to the previous owner's name and risk record, becoming invalid after the transfer. The new owner must apply for a new policy, including compulsory traffic insurance and commercial insurance, otherwise the vehicle cannot be registered for road use. Last time I bought a used car, I forgot to handle the insurance promptly and got pulled over by traffic police at an intersection, resulting in a fine and unnecessary hassle. So, as soon as the ownership transfer is done, head straight to the insurance company to get new coverage—don't delay and compromise safe driving. Nowadays, you can even buy insurance online—it's convenient, fast, and saves money.
When I bought my first car and went through the transfer process, I was also confused about whether I needed to repurchase insurance. A friend told me that it's definitely necessary to apply for new insurance because auto insurance is tied to the owner's identity, and the coverage becomes invalid once vehicle ownership changes. The new owner cannot continue using the original policy and must purchase a full set of coverage, such as compulsory traffic insurance, to cover legal risks. Otherwise, there would be no one to compensate for losses in case of an accident. After the transfer, I immediately applied for new insurance, and the whole process was quite simple—just updating the information with the insurance company. I also learned a little tip: the no-claims record of the original car might be transferable to help save on premiums. It's advisable to consult a professional advisor in advance to avoid unexpected risks. Remembering this can help beginners avoid trouble and ensure safer, more reliable driving.
From a cost-saving perspective, vehicle insurance must be repurchased after ownership transfer; otherwise, driving becomes illegal and compromises safety. However, new insurance doesn't necessarily mean high expenses. The no-claims discount from the original policy can be applied for continuation to reduce premiums. For instance, inheriting commercial insurance discounts can save hundreds. I often remind friends not to delay insurance matters during ownership transfer—handling it promptly maintains affordability while ensuring legal compliance. Otherwise, later fines would be more wasteful.
