Does Auto Insurance Need to Be Transferred When a Car Changes Ownership?
1 Answers
Yes, after the transfer of a used car, the original owner's insurance can still be used, but the insurance needs to be transferred. The transfer of used car insurance must be completed after the used car transaction and after the registration certificate owner information has been updated, along with obtaining the new license plate and vehicle registration certificate. Below is the relevant information: Methods for Handling Insurance Transfer for Used Cars: The original owner can cancel the insurance policy, and the unused portion of the premium will be refunded to the policyholder according to the insurance calculation (compulsory insurance cannot be canceled). After cancellation, the new owner can choose an insurance company. Cancellation requires the insurance policy and the original owner's ID, while new insurance requires the vehicle registration certificate and the used car transfer certificate. Transferring the existing insurance to the new owner requires the registration certificate, vehicle registration certificate, used car invoice, and the original IDs of both the buyer and seller. Process for Transferring Used Car Insurance: The insurance transfer must be processed at the original insurance provider. After completing the transfer procedures at the vehicle management office, the insurance must be updated with the insurance company. Bring the new vehicle registration certificate, IDs of both owners, and the original insurance policy, and fill out a car insurance transfer application, specifying the policy number, license plate number, names of the old and new owners, and the reason for the transfer, then sign or stamp it. Take the original insurance policy and vehicle registration certificate to the insurance company's business management department to issue an endorsement for changing the policyholder, which states the change in the insured party. This completes the car insurance transfer process.
