Is Compulsory Traffic Insurance Automatically Transferred During Vehicle Ownership Transfer?

[LaAlexis]

Whether compulsory traffic insurance is automatically transferred depends on whether the original owner's insurance policy follows the "vehicle principle." If the insurance explicitly states that the compulsory traffic insurance follows the motor vehicle, then it will be transferred to the new owner during the vehicle ownership transfer process. If the compulsory traffic insurance does not follow the vehicle, the new owner must visit the insurance company to complete the transfer procedure. The owner needs to prepare the vehicle registration certificate, the new owner's driving license, copies of the new and old owners' ID cards, the invoice from the used car transaction, and the endorsement application form provided by the insurance company to complete the compulsory traffic insurance transfer. Important Notes Once purchasing a used car, promptly complete the transfer procedures for 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 receive compensation. Compulsory Traffic Insurance for Vehicles: The full name of compulsory traffic insurance is "Compulsory Motor Vehicle Traffic Accident Liability Insurance." It is a mandatory liability insurance where the insurer compensates for bodily injuries, deaths, and property losses of victims (excluding vehicle occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limits. Premiums are based on nationally unified standards, but prices vary depending on vehicle type, primarily influenced by the number of seats. Compared to commercial third-party insurance, which has over 20 exemption clauses, compulsory traffic insurance covers a broader range, including losses caused intentionally by the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses from accidents. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance provides compensation within the liability limits, with no deductible or exemption. Introduction to Electronic Insurance Policies An electronic insurance policy is a digital policy issued by an insurer using digital signature software and enterprise digital certificates compliant with the PKI system, bearing the insurer's electronic signature. An insurance policy, abbreviated as a policy, is the official written proof of the insurance contract between the insurer and the insured. It must fully record the rights, obligations, and responsibilities of both parties. The content of the policy serves as the basis for both parties to fulfill the contract. The insurance 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; Saves time and is convenient, unrestricted by time or location, with information accessible online anytime, quickly and efficiently; Allows for reissuance or resending, eliminating concerns about loss. If a physical copy is needed, it can be printed or mailed; Facilitates management, as electronic standardization makes it easier for insurance companies and traffic police to manage vehicle insurance information.

[DeclanRose]

I've been driving for over twenty years and have gone through several vehicle transfers. The compulsory traffic insurance never transfers automatically. You have to personally visit the insurance company, bringing the original policy, IDs of both parties, and the vehicle purchase contract to update the insured information. Last time I transferred ownership, I almost forgot about this. Luckily, a neighbor reminded me—otherwise, if the new owner had an accident, the insurance wouldn't have covered it, and the responsibility would still fall on me. It's best to get it done within a week of completing the transaction so the insurance coverage is seamless, avoiding a bunch of legal troubles. I also recommend regularly checking your insurance policy status to ensure everything is correct, as mismatched information can occur after transfer, especially during renewal. Bottom line: the car is your responsibility—don't expect the system to handle it for you.

[IslaFitz]

As a novice who just bought my first used car, I think this matter is quite important but not difficult. The compulsory traffic insurance doesn't transfer automatically, so after the ownership transfer I immediately contacted the insurance company. They asked me to bring the new owner's documents and the old policy to their office to complete the modification procedures. The whole process takes about half an hour and doesn't cost much, you just need to wait for the system update. If you're too lazy to do it and an accident happens, the new owner won't be able to use the insurance and would have to trouble the original owner to handle it - that would be extremely annoying. I recommend using the insurance company's APP to make an appointment to save queuing time. Also pay attention to the insurance expiration date to avoid compromising safe driving.

[VonStephanie]

From an insurance perspective, it's a common misconception that compulsory traffic insurance (CTI) automatically transfers with vehicle ownership. The principle is straightforward: the insurance policy is tied to the policyholder, so the insured party's information must be manually updated. You'll need to bring the ownership transfer certificate and ID to the insurance company, fill out an application form, and they'll adjust the records in their system. Failure to do so may render the insurance invalid, with a high risk of claim rejection. This also relates to annual inspection issues, as traffic authorities may detect information discrepancies. The process is typically free and quick, but prolonged delays might require re-purchasing insurance.