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.
