Does Commercial Insurance Not Being Transferred Affect the New Owner?
3 Answers
Commercial insurance not being transferred will affect the new owner. After the second-hand car transfer, the original owner's insurance can still be used, but the insurance needs to be transferred. Here are the detailed information: 1. Handling method: The original owner can cancel the insurance, and the insurance company will refund the unused portion of the premium according to the insurance algorithm. After cancellation, the new owner can independently choose a new insurance company. Cancellation requires the insurance policy and the original owner's ID card, while new insurance requires the vehicle registration certificate and the second-hand car transfer certificate. 2. Notes: Generally, the place where the insurance is purchased and the place where the insurance is transferred need to be the same; if the vehicle insurance is purchased in another city or province, with complete documentation, the local insurance company staff can assist the customer in contacting the relevant department of the out-of-town insurance company for modification.
I've bought used cars several times and found that the issue of commercial insurance not being transferred is quite common. I remember the last time I helped a friend buy a car, the seller said the insurance policy was still valid and we could just drive it on the road. But a month later, when we got into a rear-end collision, the insurance company directly refused to pay, citing the reason that the policy name hadn't been changed to the new owner. The new owner had to pay for the repairs out of pocket, losing nearly ten thousand yuan. Actually, car insurance policies are the personal assets of the original owner and don't automatically transfer with the car. Nowadays, transferring ownership is much more convenient and can be done on a mobile phone. Never skip this step to save trouble. Both the buyer and seller need to bring their ID cards and the transfer certificate to the insurance company to change the policy. Otherwise, the insurance premium is just wasted, and you'll be responsible for any accidents yourself.
I've seen many insurance disputes when handling traffic accidents. If the commercial insurance is not transferred, the new owner cannot enjoy the coverage at all. After a traffic accident occurs, the insurance company checks the policy and finds that the insured is still the original owner, and will refuse to settle the claim. This is a typical issue of inconsistency in the subject of the insurance contract. I know someone who had to pay over 50,000 yuan in repair costs because of this, and it also affected the renewal discount the following year. Remember to get a paper endorsement when transferring the insurance, and the electronic policy must also be updated simultaneously. After the vehicle changes hands, it's best to immediately contact the insurance company to update the information to avoid a coverage gap.
