Do I Need to Transfer Insurance When Transferring Vehicle Ownership?
2 Answers
According to policy regulations, compulsory traffic insurance follows the vehicle, not the owner. Only when the compulsory insurance is within the validity period can the vehicle ownership transfer procedure be processed. Therefore, the insurance must be transferred. Risks of not transferring insurance: If the owner fails to transfer the insurance, in the event of an accident, the owner's losses will not be covered by insurance and will have to be paid out of pocket. Methods for transferring insurance: There are currently two common methods for transferring vehicle insurance. The first is to apply for cancellation of the existing insurance and then purchase a new vehicle insurance policy. The second method involves making some amendments to the existing policy, primarily changing the insured and the owner. This requires specifying in the vehicle sales contract that the original owner must bring the insurance policy and the vehicle ownership transfer certificate to the original insurance company's service outlet to complete the procedure.
When transferring car ownership, the insurance must absolutely be transferred as well. This is because the insurance policy is tied to the original owner's name, not the vehicle itself. Therefore, once the ownership is transferred, the original policy becomes invalid, and the new owner must either obtain new insurance or transfer the existing one. Otherwise, if the new owner gets into an accident while driving without proper insurance, it could lead to legal disputes, and the original owner might still share the risk. Having dealt with similar situations before, for safety's sake: the seller should notify the insurance company to cancel the policy before the transaction, while the buyer should arrange for new insurance on the day of the transfer. Don’t take chances—driving without insurance is illegal, and the fine could cover years of insurance premiums. Also, check the vehicle’s history to avoid risks from gaps in coverage. In short, ensuring a seamless transition is key—don’t let small oversights turn into big problems.
