Does the compulsory traffic insurance need to be transferred for a used car?
2 Answers
Yes, it is required. If the compulsory traffic insurance purchased by the original owner follows the vehicle, it will be transferred to the new owner upon the vehicle's transfer. If the compulsory traffic insurance does not follow the vehicle, the owner will need to go to the insurance company to complete the transfer procedures for the vehicle insurance. The owner needs to prepare the vehicle's registration book, the new owner's driving license, copies of the new and old owners' ID cards, the invoice issued during the used car transaction, and the amendment application form provided by the insurance company to complete the transfer of the compulsory traffic insurance. Important Notes Once you purchase a used car, promptly complete the transfer procedures for the compulsory traffic insurance and other insurance policies. Otherwise, if an accident occurs, the beneficiary will still be the original owner, and the new owner will not be able to receive compensation. Compulsory Traffic Insurance for Vehicles: The full name of compulsory traffic insurance is "Compulsory Liability Insurance for Motor Vehicle Traffic Accidents." It is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, and property losses of victims (excluding vehicle occupants and the insured) within the liability limits in the event of a road traffic accident involving the insured vehicle. The premium is based on the nationally unified standard rates. However, the price of compulsory traffic insurance varies depending on the vehicle type, with the main influencing factor being the number of car seats. Compared to the more than 20 exemption clauses in commercial third-party liability insurance, the exemptions for compulsory traffic insurance cover losses caused by intentional actions of the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses caused by accidents, offering much broader coverage. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance will provide compensation within the liability limits, with no deductible or exemption clauses. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software and enterprise digital certificates that comply with the PKI system, bearing the electronic signature of the insurance company. An insurance policy, abbreviated as a policy, is the formal written proof of the insurance contract between the insurer and the insured. The policy must fully record the rights, obligations, and responsibilities of both parties to the insurance contract. The content recorded in the policy serves as the basis for both parties to fulfill their obligations. The policy is proof of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources, eliminating the need to print insurance proof labels; Time-saving and convenient, not restricted by time or location, with information universally accessible online anytime, fast and easy; Can apply for reissuance or resending, no need to worry about losing it. If a paper version is needed offline, it can also be printed or mailed; Easy management, with electronic unification making it convenient for insurance companies and traffic police departments to manage the insurance information of each vehicle.
Last week, I just helped a friend with the transfer of compulsory traffic insurance for a used car. The first thing to do after buying a used car is to transfer the compulsory insurance—it's no trivial matter. If the policy is still under the original owner's name, it's completely unusable, and any accident claims would definitely be in vain. My friend went directly to the insurance company's counter with all the necessary documents and got it done in half an hour. Nowadays, some insurance companies' apps also allow online processing—just upload the new owner's ID card and vehicle license. Never listen to the seller if they say the policy can still be used without transfer; subsequent claim disputes can be particularly troublesome. I've seen cases where people ended up paying for repairs out of their own pockets because of this. After the transfer, make sure to check that the policy name and license plate number are correct—this is not an expense you can afford to skip.
