Is Compulsory Traffic Insurance Required for Used Car Transfer?

[VeraMarie]

Yes, compulsory traffic insurance is mandatory. If the original owner's compulsory traffic insurance follows the vehicle, it will be transferred to the new owner during the vehicle transfer process. If the compulsory traffic insurance does not follow the vehicle, the owner must complete the insurance transfer procedures at the insurance company. The owner needs to prepare the vehicle 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, promptly complete the transfer procedures for compulsory traffic insurance and other insurances. Otherwise, in the event of an accident, the beneficiary will remain 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 insurance company compensates for personal injuries, deaths, and property losses (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. However, the price of compulsory traffic insurance varies by vehicle type, primarily influenced by the number of seats. Compared to the over 20 exemption clauses in commercial third-party liability insurance, compulsory traffic insurance covers a broader range, including losses caused by intentional acts of the victim, the insured's own property losses, related arbitration and litigation costs, and certain indirect losses from accidents. Additionally, 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 clauses. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software and enterprise digital certificates that comply with the PKI system, featuring 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 insurance policy serves as the basis for both parties to fulfill their contractual obligations. 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; Time-saving and convenient, unrestricted by time or location, with information accessible online anytime, quickly and efficiently; Allows for reissuance and resending, eliminating concerns about loss. If a paper version is needed offline, it can also be printed or mailed; Easy management, as electronic unification makes it easier for insurance companies and traffic police departments to manage the insurance information of various vehicles.

[LaMalachi]

I remember when I helped a friend with the used car transfer procedures last time, compulsory traffic insurance was indeed mandatory. Before accepting the vehicle transfer registration, the DMV would carefully verify whether the insurance policy was valid and if the policyholder matched both the buyer and seller. This is because compulsory traffic insurance is a legally required third-party liability insurance designed to protect victims in road accidents. If there was no valid insurance policy during the transfer, they would outright refuse to process it, requiring the owner to purchase or renew the insurance first. I once encountered a situation where the name on the policy didn't match—the seller's insurance was still valid, but I had to visit the insurance company to handle the beneficiary rights change and submit additional documents before completing the transfer. The whole process was time-consuming, so I recommend checking the insurance validity a week before the transaction to avoid delays on-site that could affect the progress. Additionally, remember to renew the insurance promptly after the transfer; otherwise, you might face fines when driving.

[EstherRose]

I just bought a used car last month and encountered the compulsory traffic insurance issue during the ownership transfer process. The DMV staff clearly stated that a valid insurance policy must be presented to complete the transfer procedure. This is a mandatory national requirement to ensure the vehicle has liability coverage. Although the previous owner's insurance hadn't expired, we visited the insurance company before the transfer to change the policy to my name, which took some time but went smoothly. The key point is that the insurance must fully cover the transfer date, otherwise the application will be rejected and require re-submission. For new buyers, don't just focus on negotiating the price and overlook this detail. Coordinating the insurance transfer steps in advance can save a lot of trouble. Remember, safety comes first - uninsured vehicles cannot be legally transferred or driven on the road.

[LeManuel]

Having worked in the automotive industry for many years and handled countless vehicle transfers, I can confirm that compulsory traffic insurance is a fundamental requirement. The DMV will verify the authenticity of the insurance policy, and any invalid or missing documents will result in immediate rejection. The reason is simple: mandatory insurance prevents disputes arising from uninsured vehicles. Before transferring ownership, always check the insurance expiration date. If it's nearing expiry, it's best to renew or purchase new coverage in advance. If the policy name doesn't match, simply bring your ID and the sales contract to the insurance company to update the beneficiary name. A handy tip is to handle the insurance changes during the transaction to minimize future hassles.