Does it matter if the insurance policy is still under the previous owner's name after car transfer?
2 Answers
After the transfer of a used car, the insurance can continue to be used without any issues, but it is recommended to transfer the insurance along with the car. According to current regulations, compulsory traffic insurance follows the vehicle, not the owner. The compulsory traffic insurance must be valid for the transfer procedures to be completed at the vehicle management office. If the insurance is not transferred, in the event of an accident, the original owner must be contacted to claim compensation, which can be very cumbersome. To avoid potential issues and insurance rights disputes after the transfer, it is advisable to complete the insurance transfer procedures at the insurance provider after purchasing a used car and finalizing the vehicle transfer. There are two ways to handle insurance transfer for used cars: The original owner can cancel the insurance, and the unused portion of the premium will be refunded to the policyholder according to the insurance calculation (compulsory traffic insurance cannot be canceled). After cancellation, the new owner can choose a new insurance company. Cancellation requires the insurance policy and the original owner's ID card, while new insurance requires the vehicle license and the used car transfer certificate. Transfer the existing insurance to the new owner (requires the vehicle registration certificate, vehicle license, used car invoice, and the original ID cards of both the buyer and seller). Generally, the insurance transfer must be processed at the original insurance provider. After completing the transfer procedures at the vehicle management office, the insurance must be updated with the insurance company; otherwise, claims cannot be processed normally in case of an accident. Bring the new vehicle license, the ID cards of both owners, and the original insurance policy, as the vehicle ownership has been transferred.
I once bought a used car and didn’t pay attention to the insurance policy after the transfer. Later, when I scraped the car while parking, the insurance company directly refused to compensate, citing that the policy was still under the previous owner’s name. I was dumbfounded at the time and had to pay thousands out of pocket for repairs. Now I’ve learned my lesson: failing to update the insurance policy after a car transfer definitely has negative consequences. Because auto insurance is tied to the owner, driving without the new owner being covered is equivalent to driving uninsured. In case of an accident, not only can you not file a claim, but you may also face fines, penalty points from traffic police, or even affect future annual inspections. Many places also require a new insurance policy to complete the transfer process, which could cause delays. The safest move is to contact the insurance company immediately to transfer the policy to your name—don’t delay it.
