Auto insurance needs to be transferred; otherwise, in the event of an accident claim, the original owner must still be involved. There are two methods available for transferring or modifying auto insurance: 1. Change of Policy Holder: After the vehicle completes the transfer process at the DMV, the new owner can bring the transfer invoice, a copy of the vehicle registration, the original insurance policy, their ID card, and the original policyholder's ID card to the original insurance company. By filling out a transfer application form, the policy can be amended and transferred. 2. Apply for Policy Cancellation: When applying for cancellation, only the premium from the start date of the policy to the cancellation date needs to be paid, and the remaining premium will be refunded by the insurance company accordingly. After cancellation, the new owner can then purchase auto insurance from any insurance company. In the first scenario, the insurance company can only process claims after the used car insurance has completed the transfer amendment procedures. The effective date of the insurance policy is calculated from the date of issuance (i.e., the effective date of the transfer application). Additionally, transferring auto insurance does not necessarily incur a transfer fee. Generally, if there are no special changes after the vehicle transfer and there is no need to modify the insurance, the transfer can be done without any fees, requiring only a simple transfer procedure at the insurance company. However, if there are changes in the vehicle's usage or ownership nature, the insurance company may charge a certain fee.
