Is Compulsory Traffic Insurance Still Valid After Vehicle Transfer?
1 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.
