Is Compulsory Traffic Insurance Still Valid After Vehicle Transfer?
4 Answers
If a vehicle is transferred but the compulsory traffic insurance is not transferred, the insurance remains valid in the event of a traffic accident and will not affect the claim settlement. However, it is necessary to transfer the insurance. If the insurance is not transferred, it may affect the claim payout. If the policyholder is not changed to the new owner, the insurance company's system will still recognize the original owner as the policyholder and beneficiary by default. In such cases, this could impact the claim payment process, specifically regarding to whom the money is disbursed. The documents required from the original owner for a used vehicle transfer include the vehicle registration certificate, driving license, and ID card, among others. The buyer needs to provide an ID card, and if they are from another region, a residence permit or temporary residence certificate is required. Vehicle transfer first requires a vehicle evaluation. The evaluation fee is generally 1%-2% of the assessed vehicle value, with other costs including license plate and driving license fees. The original owner's commercial insurance can be canceled (compulsory traffic insurance cannot be canceled), or the insurance can be transferred to the buyer at the insurance company. Precautions when purchasing a used car: Incomplete documentation. Complete documentation for a used car includes the vehicle registration certificate (or original purchase invoice), driving license, vehicle purchase tax payment certificate, road maintenance fee records, and compulsory traffic insurance, among others. Missing documents such as the vehicle registration certificate or driving license, or unpaid compulsory traffic insurance or road maintenance fees, can cause endless trouble for the buyer. Therefore, if the seller cannot provide complete documentation, the buyer should be particularly cautious. Tampering with the odometer. Most consumers rely on the odometer to judge a vehicle's condition, and sellers often take advantage of this by tampering with the odometer. The odometer is not just an indicator of usage intensity but also a record of maintenance and part replacements. If the buyer follows the tampered odometer readings for maintenance, it could lead to a series of potential safety hazards. New paint covering 'external injuries.' When purchasing a used car, if the vehicle has been repainted and there are signs of repairs around the front, rear, or A, B, and C pillars, the car may have been involved in a major accident. 'Tuning the heart' to raise the price. Many buyers focus too much on the car's 'heart' (engine) while neglecting the overall condition of the vehicle. Used car sellers take advantage of this by replacing engine components to make the 'heart' appear younger, thereby inflating the price.
Last time I bought a used car, the transfer procedures went smoothly and I thought everything was settled. However, just a few days after hitting the road, I had a minor accident. When I filed a claim with the insurance company, it was rejected. They said the compulsory traffic insurance needed to be re-registered or have its information updated after the transfer to remain valid. It turned out the previous owner didn’t notify the insurance company during the transfer, and I didn’t pay attention to it either, which caused the insurance to lapse and almost left me paying for the repairs out of pocket. Since then, I’ve learned that right after completing the transfer, the first thing to do is to update the information with the insurance company or reapply for compulsory insurance—don’t wait until an accident happens to regret it. The vehicle management office only handles vehicle registration, not insurance, so it’s up to you to follow up and ensure you’re legally on the road. Buying a used car really requires extra attention—don’t skip this safety step. It saves hassle, peace of mind, and money.
Having worked in an auto repair shop for several years, I've seen many cases where car owners encountered insurance issues after vehicle transfer, such as compulsory traffic insurance becoming invalid, leading to difficulties in accident compensation. Generally, compulsory traffic insurance does not automatically continue after a vehicle transfer because the insurance is tied to the original owner's information. The new owner must bring the transfer certificate and ID card to the insurance company to handle the change or reapply. If not addressed promptly, even being stopped on the road and found with invalid insurance could result in fines or even vehicle impoundment. My advice is to contact the insurance company directly after the transfer to complete this step without delay—it's low-cost but ensures safety. Such issues frequently occur in daily life, and it's really not worth neglecting the insurance details.
Just got my driver's license and bought a used car. After the transfer, a friend reminded me that the compulsory traffic insurance needs to be reissued, otherwise it's useless. I really didn't know before and thought the insurance followed the car. After checking online, I found out that the new owner has to go to the insurance company to complete the change procedures, otherwise the insurance company won't pay in case of an accident. I rushed to get it done to avoid future troubles. Young people have less experience when buying cars and need to learn more. Don't be careless about insurance—it's quite important and not something to take lightly for convenience.
