Does Insurance Need to Be Transferred After Vehicle Ownership Transfer?
3 Answers
Insurance also needs to be transferred after vehicle ownership transfer. According to the motor vehicle insurance policy terms, during the validity period of the insurance, if the insured vehicle is sold, transferred, gifted to others, or its purpose is changed, the policyholder must notify the insurance company in writing and apply for policy endorsement. Otherwise, the insurance company has the right to refuse compensation. Insurance transfer process: After the vehicle ownership transfer is completed at the vehicle management office, the new owner should bring the transfer invoice, a copy of the vehicle registration certificate, the original insurance policy, their ID card, and the original policyholder's ID card to the original insurance company to fill out a transfer application form to complete the policy endorsement transfer. Applying for policy cancellation: To apply for policy cancellation, only the premium from the start of the insurance period to the cancellation date needs to be paid. The remaining premium will be refunded by the insurance company accordingly. After that, the new owner can reapply for vehicle insurance with any insurance company.
After I bought a car, I didn't transfer the insurance, and then I had a minor accident only to find out the insurance was invalid. The new owner must update the insurance information promptly; otherwise, if something happens to the vehicle, the original insurance company won't cover it because the policy is still under the previous owner's name. After the transfer, bring the vehicle registration certificate, ID card, and transfer proof to the insurance company to update the details—it's very straightforward. If you don't make the changes, the new owner assumes all risks and might even face difficulties when purchasing insurance next time. I recommend handling the insurance matters immediately after the car transaction—don't wait until an accident happens to regret it. Safety comes first. For specifics, you can consult the DMV or the insurance company—it's low-cost and hassle-free.
As someone who has been dealing with vehicles for years, I can tell you that insurance must be transferred after the ownership change. The insurance policy is tied to the vehicle owner, and if the new owner doesn't update the information, any accident claims may be denied. When handling the transfer, bring the new owner's ID, vehicle certificate, and transfer documents to the insurance company—usually, this can also be done online. Delaying this process can lead to potential risks such as fines or additional fees, especially in high-traffic areas where vigilance is crucial. Different vehicle types like sedans and trucks have similar insurance requirements, but the transfer should be done quickly—I've handled many cases that emphasize the importance of prompt action. Remember, insurance without transfer is like buying no protection at all, and the new owner bears significant responsibility.
