Does the insurance transfer along with the used car during ownership transfer?

[NoraDella]

During the transfer of ownership of a used car, the insurance requires a separate transfer procedure to be reassigned to the new owner. For some vehicles, compulsory traffic insurance (CTI) can be directly transferred with the vehicle, eliminating the need for a separate process. According to the "Insurance Law," when the subject matter of insurance is transferred, the transferee inherits the rights and obligations of the insured. Generally, the original insurance of the used car to be transferred has not expired. After completing the ownership transfer, the new owner must update the registration certificate, obtain new license plates and the vehicle registration booklet, after which both parties can proceed with the insurance transfer and hand over the insurance policy. This clause is designed to protect the interests of the insured and fundamentally resolves past disputes arising from the transfer of the subject matter of insurance. However, it is important to remind vehicle owners that the law also stipulates that the insured or transferee must promptly notify the insurer of the transfer. If the insured or transferee fails to fulfill this notification obligation and the transfer significantly increases the risk level of the subject matter, resulting in an insurance incident, the insurer will not be liable for compensation. Relevant regulations are as follows: Article 18 of the "Motor Vehicle Registration Regulations": For registered motor vehicles whose ownership is transferred, the new owner must apply for a transfer registration at the local vehicle management office within 30 days from the date of delivery. Article 19: When applying for transfer registration, the new owner must complete an application form, submit the vehicle for inspection, and provide the following documents: the new owner's identity proof; proof of ownership transfer; the motor vehicle registration certificate; the vehicle registration booklet; for customs-supervised vehicles, a "Customs Supervision Release Certificate" or approved transfer proof; for vehicles exceeding the inspection validity period, a valid motor vehicle safety inspection certificate and compulsory traffic insurance certificate. Article 19 of the "Used Vehicle Circulation Management Measures" states: After the completion of a used vehicle transaction, the seller must promptly deliver the vehicle, license plates, and legal documents to the buyer. Legal documents include: the "Motor Vehicle Registration Certificate"; the "Vehicle Registration Booklet"; a valid motor vehicle safety inspection label; vehicle purchase tax payment proof; road maintenance fee payment proof; vehicle and vessel tax payment proof; and the insurance policy. Methods for handling insurance after used car ownership transfer: The first method is changing the policyholder. This is straightforward: after the vehicle is transferred at the vehicle management office, the new owner can visit the original insurer with the transfer receipt, a copy of the registration booklet, the original insurance policy, and their ID card along with the original policyholder's ID to complete the transfer application. The second method is applying for a policy cancellation. The original owner can cancel the policy by paying premiums for the period from the start date to the cancellation date, with the remaining premiums refunded by the insurer. The new owner can then choose any insurer to purchase new coverage. The original owner needs the policy and ID for cancellation, while the new owner only needs the updated registration booklet or transfer proof to select a new insurer. Important considerations for personal used car transfers: Verify the embossed number, engine number, and registration date on the title certificate, and check for any signs of alteration. Before transferring ownership, check for any outstanding traffic violations and ensure the compulsory traffic insurance is valid. Vehicles with violations cannot be transferred until the violations are resolved. Check for vehicle purchase tax payment receipts. After transfer, unpaid or exempted taxes may require settlement. When purchasing from a brokerage, a formal sales contract is signed. For private transactions, a written agreement signed by both parties is necessary for record-keeping. During the transfer process, fees or refunds may arise. Agree in advance whether the original or new owner will cover transfer and inspection fees, and ensure both parties are present for insurance cancellation and transfer procedures.

[DelilahLee]

A couple of days ago, while helping a friend with a used car transfer, I specifically researched insurance issues. Compulsory traffic insurance must follow the vehicle, and both the buyer and seller just need to visit the insurance company to complete the transfer amendment procedures. However, commercial insurance is different—it depends on whether the original owner is willing to give it to you, and usually, you'll need to pay a prorated amount based on the remaining days. Remember to check three key points: First, whether the policy has expired—I once almost bought a car with only 7 days of insurance left. Second, have the seller call the insurance company in person to confirm there's no cancellation—there was news about someone discovering after the transfer that the original owner had canceled the policy to scam money. Third, pay attention to the validity period for insurance transfer—generally, you must complete the procedures within 30 days of the transaction, or you'll have to insure it as a new car.

[AshlynRose]

Last month, I just sold my old car and discovered many intricacies when transferring the insurance to the buyer. The key point is that compulsory traffic insurance cannot be canceled but must be transferred, while commercial insurance has its own considerations. It's advisable to check the details of the original car's commercial insurance on the spot, especially add-ons like scratch insurance, which are often overlooked. When transferring the ownership, I took the buyer directly to the PICC branch, and the staff completed the name change in just five minutes. A special reminder: double-check the coverage amount for third-party liability insurance—now it's recommended to have at least 2 million, as some old policies only cover 500,000, which is practically useless. By the way, if the original owner is unwilling to transfer the commercial insurance, you can negotiate to share the refunded premium—don’t let yourself be shortchanged.

[VonLawson]

As a professional who has handled transactions for hundreds of used cars, insurance processing should be done in three steps: First, check the compulsory traffic insurance, which is mandatorily transferred with the license plate; second, verify the validity of the commercial insurance—if there are more than three months left, it may be valuable for negotiation of transfer; third, pay special attention to whether the insurance coverage is adequate. Last week, I encountered an accident vehicle where, during the transfer, no one noticed that the original third-party liability insurance only had a coverage of 200,000 yuan, resulting in the buyer having to compensate over 100,000 yuan after an accident. The proper procedure is for both the buyer and seller to bring their ID cards, the new vehicle registration certificate, and the original insurance policy to the insurance company together, and sign an endorsement for the transfer of the insurance subject to ensure everything is secure.