Does Insurance Transfer with a Used Car?
3 Answers
Compulsory traffic insurance transfers with the vehicle, but commercial insurance must be changed separately. According to insurance regulations, after the transfer of a used car, commercial insurance requires modification procedures for the original insurer to continue covering the insured vehicle. In other words, if commercial insurance is not updated after the transfer, the insurer may refuse claims in case of an accident. Here are key points to note for used car transfers: 1. Verify the legality of the vehicle registration certificate: Pay special attention to the embossed number, engine number, and registration date, ensuring no alterations. 2. Check for traffic violations: The vehicle must have no outstanding violations and valid compulsory insurance to proceed with the transfer. Vehicles with violations typically cannot be transferred until cleared. 3. For vehicles past inspection expiry: Submit proof of valid safety inspection and compulsory insurance. 4. Clarify insurance ownership: Commercial insurance can be canceled or transferred based on buyer-seller agreement.
I just went through the process of buying a used car and transferring ownership, and I realized that insurance doesn't automatically transfer with the car. The original owner and I had to go to the insurance company together to complete the transfer procedures, bringing along the vehicle registration certificate, both parties' ID cards, and the original insurance policy. If this isn't handled, the new owner would be driving without insurance, and any accident could result in significant losses. I took care of it immediately after the ownership transfer, and the whole process took only half an hour, with just a small service fee. Don't skip this small step—safety on the road comes first, and it also saves you from future hassles. Regularly checking your vehicle's status also helps keep your insurance valid, making your driving experience more secure and worry-free.
During car maintenance, I've seen many used cars encounter issues because the insurance wasn't properly transferred with the vehicle. Insurance requires both parties to sign a transfer agreement or take out a new policy—it doesn't automatically follow the car's ownership transfer. The new owner must promptly contact the insurance company to update the information; otherwise, filing a claim can become extremely difficult if an accident occurs. I always advise customers to check the policy's validity period after the transfer and ensure the coverage suits their needs. Proper vehicle maintenance can also reduce insurance risks. Don’t let small oversights lead to major losses, and always prioritize safe driving.
