Does Vehicle Insurance Need to Be Transferred When Ownership Changes?

[RiverDella]

After a used car is transferred, the original owner's insurance can still be used, but the insurance needs to be transferred. When vehicle ownership changes, the policyholder of the vehicle insurance remains unchanged, which can lead to complications in claims settlement in case of an accident. Therefore, it is necessary to transfer the vehicle insurance promptly after the ownership transfer. There are two ways to handle insurance for a transferred used car: (1) The original owner can cancel the insurance and receive a refund for the unused portion of the premium based on the insurance calculation (compulsory insurance cannot be canceled). Cancellation requires the insurance policy and the original owner's ID, while new insurance requires the vehicle registration certificate and proof of ownership transfer. (2) The existing insurance can be transferred to the new owner (requiring the vehicle registration certificate, license, used car invoice, and original IDs of both buyer and seller). Generally, the insurance transfer must be processed at the original insurance provider. After completing the ownership transfer at the vehicle management office, it is mandatory to update the insurance details with the insurance company.