Does Not Transferring Insurance Affect Claims After Vehicle Transfer?
2 Answers
It does not affect claims. The new "Insurance Law" stipulates the following regarding the non-transfer of insurance for used cars: Article 49: When the subject matter insured is transferred, the transferee of the subject matter insured inherits the rights and obligations of the insured. Upon the transfer of the subject matter insured, the insured or the transferee shall promptly notify the insurer, except for cargo transportation insurance contracts and contracts with other agreements. If the transfer of the subject matter insured significantly increases the risk, the insurer may, within 30 days from the date of receiving the notice mentioned in the preceding paragraph, increase the premium or terminate the contract as agreed in the contract. If the insurer terminates the contract, it shall refund the premium already collected, deducting the portion receivable from the commencement date of the insurance liability to the termination date of the contract, as agreed in the contract. If the insured or the transferee fails to fulfill the notification obligation stipulated in the second paragraph of this article, the insurer shall not be liable for paying insurance compensation for any insured event caused by the transfer that significantly increases the risk of the subject matter insured. From this, it can be understood that the revised "Insurance Law" clarifies the following: The insurance contract is automatically transferred along with the transfer of the subject matter insured. In other words, as long as the insurance has not expired, the buyer of the used car can directly inherit the rights and obligations of the original owner without having to go to the insurance company to complete the transfer procedures. The documents required for the original owner to transfer a used car include: the registration certificate, the vehicle license, and the ID card, among others. The buyer needs to provide an ID card, and if they are from another region, a residence permit or temporary residence permit is required. The first step in transferring a vehicle is to conduct a vehicle evaluation. The evaluation fee is generally 1%-2% of the evaluated vehicle price, and other fees include the license plate and vehicle license fees. The original owner's commercial insurance can be canceled (compulsory insurance cannot be canceled), or the insurance can be transferred to the buyer at the insurance company. Precautions when purchasing a used car: Incomplete documentation. Complete documentation for a used car includes: the vehicle registration certificate (or the original purchase invoice), the vehicle license, the vehicle purchase tax payment certificate, the road maintenance fee documentation, and compulsory insurance, among others. Missing documents such as the vehicle registration certificate or vehicle license, or unpaid compulsory insurance or road maintenance fees, can cause endless trouble for the buyer. Therefore, when purchasing a car, if the seller cannot provide complete documentation, the buyer should be especially cautious. Tampering with the odometer. Most consumers like to judge the condition of a car based on the odometer, and sellers often take advantage of this psychology by tampering with the odometer. In fact, the odometer is not just an indicator of usage intensity but also a recorder for the maintenance and replacement of other vehicle components. If the buyer follows the maintenance schedule based on a tampered odometer, it will bring a series of potential safety hazards. New paint covering "external injuries." When consumers purchase a used car, if the car has been repainted and there are signs of repair around the front face, rear, and A, B, and C pillars, the car is highly likely to have been involved in a major accident. "Tuning the heart" to raise the price. Many consumers focus too much on the car's "heart" (engine) when buying a car and neglect the health of the car body. Used car sellers take advantage of this psychology by replacing engine components to make the vehicle's "heart" appear younger, thereby raising the price.
I just bought a used car, but didn’t transfer the insurance in time after the ownership transfer. As a result, my friend had a minor accident, and the claim was actually denied. The insurance company explained that the insurance policy is tied to the owner’s name. If it’s not updated, they might consider the owner mismatched, and the claims process gets stuck. This not only wastes time but also increases financial risks. I think it’s essential to sync the insurance information after the transfer—the process is actually quite simple. Just bring the transfer proof to the insurer or update it online. If something goes wrong, not only is the claims process troublesome, but you might also end up covering the losses yourself—totally not worth it. Don’t delay insurance matters; safety comes first.
