Does insurance also need to be transferred after a car title transfer?
4 Answers
Insurance also needs to be transferred after a car title transfer, otherwise the insurance will become invalid. Below are detailed introductions to two common methods for transferring vehicle insurance: 1. Apply for policy cancellation: This means canceling the original vehicle insurance and then applying for a new vehicle insurance policy. With this method, you can request the original owner to cancel the previous policy and deduct this portion of the value from the car price. When the new owner applies for insurance again, they will need to provide the new vehicle license or vehicle transfer certificate. 2. Make some modifications to the original policy elements: The key is to modify the insured and owner information, which requires specifying in the vehicle sales contract that the original owner must bring the policy and vehicle transfer certificate to the original insurance company's sales outlet to complete the process.
I've personally experienced the process of transferring car ownership, and it's crucial to transfer the insurance as well after the transfer. This is because insurance is tied to the owner's identity, not the car itself. If the new owner doesn't proactively handle the insurance transfer, the original owner's policy remains active, but if you get into an accident while driving, the insurance company might deny the claim, stating that the coverage doesn't include you. That could lead to major trouble, potentially leaving you to cover repair costs or legal liabilities. Remember to contact your insurance company promptly after the transfer is complete, bringing along the new vehicle registration and ID card to update the beneficiary information. Don't wait until an accident happens to regret it—safety is no small matter. Also, make sure to check both commercial insurance and compulsory traffic insurance to ensure full coverage. The entire process is simple and quick, usually completed on the same day, helping you avoid any potential risks.
I think handling the transfer of car insurance is quite necessary. Once the car is transferred and the ownership changes hands, the original insurance can't be used directly. The new owner needs to personally go to the insurance company to complete the procedures and update the policy under your name. Otherwise, driving on the road carries high risks, such as having no coverage in case of an accident. In terms of costs, the insurance premium may be adjusted depending on your driving record. The process isn't complicated—just submit the transfer proof documents. An additional reminder: it's best to first suspend the original owner's insurance before opening a new policy, ensuring seamless coverage without gaps. In the long run, this is a good habit to protect yourself and avoid legal fines.
After transferring car ownership, the insurance must also be transferred. Simply put, the policy is tied to the original owner, and if the new owner fails to complete the transfer procedures, it is equivalent to driving without insurance. In the event of an accident, claims will be difficult, and you may also face fines. Quickly contact your insurance company to update the information to ensure safe driving.
