How to Buy Insurance for a Second-hand Car That Has Just Been Transferred?
4 Answers
After the original owner of a second-hand car that has just been transferred completes the cancellation procedures for the insurance, the new owner can then go to any insurance company to reapply for car insurance. Below are the relevant details: 1. Required insurance: Compulsory traffic insurance must be purchased as it is a mandatory insurance stipulated by national law. Additionally, commercial insurance such as vehicle damage insurance, third-party liability insurance, and no-deductible insurance are highly recommended. 2. Regulations: The new "Insurance Law" stipulates that the new owner can directly inherit the insurance of the original owner without having to go to the insurance company to complete the transfer procedures. It also stipulates that after the vehicle is transferred, the original owner or the new owner should promptly notify the insurance company. Since the transfer of the vehicle may increase the risk level, the insurance company can increase the insurance premium or terminate the contract within 30 days according to the contract agreement.
I've bought three used cars, and the most important thing after transferring ownership is to purchase insurance promptly and bring all the required documents. Remember to bring the vehicle registration certificate, new license plate, your ID card, and a copy of the previous owner's ID card straight to the insurance company. Compulsory traffic insurance follows the car, not the owner, so it must be transferred immediately. For commercial insurance, you can cancel and repurchase it. The insurance company will ask you to sign a transfer application form—remember to request a check on the car's previous claim records. Last time, I went for a cheap deal without checking the records and later found out the car had been in a major accident. The next year, my premium went up by 30%. A word of advice: after the transfer, it's best to recalculate the coverage amount for commercial insurance. Insuring a used car at the price of a new one is a huge rip-off.
As someone who often helps friends with car purchases, here are key points to note about used car insurance: The compulsory traffic insurance must be transferred on the same day, otherwise you'll have to pay out of pocket if caught driving without it. Commercial insurance can be canceled and repurchased, but don't delay—I've seen buyers who didn't transfer insurance within ten days of ownership end up in a two-week dispute after a minor collision. Bringing the vehicle's green book and both certificates to the counter is the safest option, though it can now be done via app, which requires uploading a photo of the owner holding their ID. Be sure to check the car's past claim history—premiums will increase the following year if there are more than three claims. It's also advisable to add a 'non-finding third party' clause, as scratches from unknown parties in older residential areas are particularly common.
I've been working in the repair shop for ten years. Here's how to handle insurance after a used car transfer: First, check the maintenance records to confirm the mileage and avoid insuring based on false mileage reports. The compulsory traffic insurance policy name must be updated on the same day, otherwise, the insurance won't cover any incidents and it's illegal. For commercial insurance, verify the VIN number—once a client had to make three trips because the engine number didn't match. Always lift the car to inspect the chassis; even with full coverage, it's hard to claim for water-damaged vehicles. I recommend adding scratch coverage—used car paint can't take much abuse. Most importantly, have the insurance agent check the renewal discount; the previous owner's discount can't be carried over, so remember to recalculate.
