Is Compulsory Traffic Insurance Automatically Transferred When a Used Car Changes Ownership?
3 Answers
If the compulsory traffic insurance purchased by the original owner of the vehicle follows the vehicle, the insurance will be transferred to the new owner when the vehicle changes ownership. If the compulsory traffic insurance does not follow the vehicle, the owners will need to go to the insurance company to complete the transfer procedures for the vehicle insurance. The owner needs to prepare the vehicle's registration book, the new owner's driving license, copies of the new and old owners' ID cards, the invoice issued during the used car transaction, and the amendment application form provided by the insurance company to complete the transfer of compulsory traffic insurance. Important Notes Once a used car is purchased, the transfer procedures for compulsory traffic insurance and other insurances should be completed as soon as possible. Otherwise, if an accident occurs, the beneficiary will still be the original owner, and the new owner will not be able to receive compensation. Compulsory Traffic Insurance for Vehicles: The full name of compulsory traffic insurance is "Compulsory Liability Insurance for Motor Vehicle Traffic Accidents." It is a mandatory liability insurance where the insurance company compensates for personal 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. The premium is based on the nationally unified standard rates. However, the price of compulsory traffic insurance varies for different vehicle types, mainly influenced by the number of car seats. Compared to the more than 20 exemption clauses in commercial third-party liability insurance, the exemption scope of compulsory traffic insurance covers losses caused by intentional acts of the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses caused by accidents, with a much broader coverage. Moreover, regardless of whether the insured vehicle is at fault in the accident, compulsory traffic insurance will provide compensation within the liability limits, with no deductible or exemption. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software and corporate digital certificates that comply with the PKI system, bearing the electronic signature of the insurance company. An insurance policy, abbreviated as a policy, is the formal written proof of the insurance contract between the insurer and the insured. The policy must fully record the rights, obligations, and responsibilities of both parties to the insurance contract. The content recorded in the policy serves as the basis for both parties to fulfill the contract. The 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 marks; Saves time and is convenient, not restricted by time or location, with information universally accessible online anytime, quick and easy; Can apply for reissuance or resending, no need to worry about losing it, and a paper version can be printed or mailed if needed offline; Easy management, with electronic unification making it convenient for insurance companies and traffic police departments to manage the insurance information of various vehicles.
I recently bought a used car and learned firsthand that compulsory traffic insurance doesn’t automatically transfer with ownership. During the transaction, I thought all the paperwork was settled and I could hit the road, but the insurance company informed me the policy was still under the previous owner’s name. Both buyer and seller must personally visit the insurer with IDs, the vehicle registration certificate, and the insurance contract to complete the transfer. Skipping this step could lead to serious trouble if an accident occurs—claims might be denied. My advice: include this detail clearly in the purchase agreement, don’t cut corners. While some insurers now offer online transfers via their apps, visiting the office in person is still the safest bet. Handle this promptly after buying the car—don’t wait until problems arise to regret it.
I've been helping out at the auto shop for over a decade, and I've seen many second-hand car owners suffer big losses due to not transferring the compulsory traffic insurance. The compulsory insurance doesn't transfer automatically; you have to handle it manually. The original owner's policy needs to be renewed or a new one must be issued, otherwise it's as dangerous as driving in neutral. I always remind customers to call or visit the insurance company immediately after the transaction to complete the transfer, bringing necessary documents like the vehicle license and insurance policy. If not done promptly, the insurance company might argue during accident claims, leaving the owner to pay for repairs out of pocket, which is even worse. Make it a habit to ask about it during regular maintenance to prevent trouble.
