Does Compulsory Traffic Insurance Need to Be Transferred to the Second-hand Car Owner?
4 Answers
Yes, it is required. If the compulsory traffic insurance purchased by the original car owner follows the vehicle, the insurance will be transferred to the new owner when the vehicle is transferred. If the compulsory traffic insurance does not follow the vehicle, the owners will need to go to the insurance company to complete the transfer procedures for the vehicle insurance. The owner needs to prepare the vehicle registration book, the new owner's driving license, copies of the new and old owners' ID cards, the invoice issued during the second-hand car transaction, and the amendment application form provided by the insurance company to complete the transfer of the compulsory traffic insurance. Important Notes Once you purchase a second-hand car, promptly complete the transfer procedures for the compulsory traffic insurance and other insurances. Otherwise, if an accident occurs, the beneficiary will still be the original owner, and the new owner will not be able to receive compensation. Compulsory Traffic Insurance for Vehicles: The full name of compulsory traffic insurance is "Compulsory Motor Vehicle Traffic Accident Liability Insurance." It is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, and property losses of victims (excluding vehicle occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limits. The premium is based on the nationally unified standard rates. However, the price of compulsory traffic insurance varies for different vehicle types, with the main influencing factor being the number of car seats. Compared to the more than 20 exemption clauses in commercial third-party liability insurance, the exemption scope of compulsory traffic insurance covers losses caused by intentional actions of the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses caused by accidents, with a much broader coverage. Moreover, regardless of whether the insured vehicle is at fault in the accident, compulsory traffic insurance will provide compensation within the liability limits, with no deductible or exemption. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software and enterprise digital certificates that comply with the PKI system, featuring the electronic signature of the insurance company. An insurance policy, abbreviated as a policy, is the formal written proof of the insurance contract between the insurer and the insured. The policy must fully record the rights, obligations, and responsibilities of both parties to the insurance contract. The content recorded in the policy serves as the basis for both parties to fulfill the contract. The policy is proof of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources, eliminating the need to print insurance proof labels; Saves time and is convenient, not restricted by time or location, with information universally accessible online anytime, making it quick and easy; Allows for reissuance and resending, eliminating worries about losing it. If a paper version is needed offline, it can also be printed or mailed; Facilitates management, as electronic standardization makes it easier for insurance companies and traffic police departments to manage the insurance information of various vehicles.
I dealt with this when I bought a used car last time - compulsory traffic insurance absolutely must be transferred. It's like part of the vehicle; when ownership changes, the insurance needs to follow, otherwise the new owner would be driving illegally. Insurance companies check if the policy matches the vehicle registration, and discrepancies can result in fines over 200 RMB. The transfer process is actually simple: both buyer and seller bring their ID cards and vehicle registration to the original insurance company, fill out an application form, and it's done in minutes. If not handled promptly, in case of an accident, the new owner would face difficulties claiming compensation, and the original owner might still be held liable. From my experience, this should be discussed clearly during purchase to avoid future disputes. I recommend consulting reputable dealerships or insurance companies to ensure everything complies with regulations before hitting the road.
As a first-time buyer, I was particularly concerned about the transfer process. The compulsory traffic insurance must be transferred—it's not optional but a mandatory requirement because the insurance follows the vehicle, not the owner. If you don't handle it, the new owner won't have legal protection on the road, and traffic police can impose fines and deduct points if caught. The process was quite smooth: the original owner and I met at the insurance company, provided our IDs, and completed the registration. Don’t forget to check the insurance validity period to ensure there’s no gap. Handling this step properly can prevent many unexpected issues, such as claim rejections or additional expenses. I recommend finalizing this detail during the transaction to avoid post-sale complications.
When selling a car, I always emphasize the transfer of compulsory traffic insurance. It follows the vehicle, so the new owner must have the policy under their name. Otherwise, the insurance becomes invalid, the buyer can't drive the car, or in case of an accident, I as the original owner might still be held liable. Simply complete the transfer process by filling out a form at the insurance company—it doesn’t take much time. This protects the rights of both parties and minimizes future risks.
