Is Insurance Automatically Transferred When a Car Is Sold?

[DelEverett]

Insurance is not automatically transferred when a car is sold: According to relevant provisions of the Insurance Law, when an insured vehicle is sold, transferred, gifted to others, or has its purpose changed, the policyholder must notify the insurance company in writing in advance and apply for an endorsement. When the insured vehicle is transferred, the original policy will also become invalid. At the same time, after the transfer of a used car, the auto insurance must undergo endorsement procedures for the insurance company to continue providing coverage for the insured vehicle. Below is relevant information: 1. Scope of policy cancellation: Commercial vehicle insurance and other types of insurance can be canceled, but compulsory traffic insurance cannot be canceled, and the vehicle's insurance policy must be within the validity period. However, it should be noted that if no claim has been reported to the insurance company or no claim has been made, the policy can be canceled, but vehicles that have previously reported claims or received compensation from the insurance company cannot cancel their policies. 2. Cancellation fees: Cancellation fees are refunded based on the remaining months. For example, if the insurance took effect at the beginning of January and the car is sold in July, the insurance company will refund five months of insurance premiums. However, canceling the policy may result in certain financial losses because the insurance company will charge a portion of the fees as a handling charge, especially if the cancellation process is not conducted through proper procedures, which may lead to greater risks of loss.

[VonJade]

I've sold several cars before, and the insurance doesn't automatically transfer. You need to contact the insurance company right after the deal is done to cancel the policy, which can get you a refund for the unused premium. The new owner also needs to purchase new insurance. If you delay and don't handle it, and the car gets into an accident, the insurance company might refuse to pay, leaving you responsible. Last time, my neighbor was lazy and didn't cancel the insurance, and when the new owner hit someone, he almost got into legal trouble. So, don't skip this step—handle the insurance right after selling the car to avoid financial and emotional stress. Remember to bring your ID and the vehicle transfer documents to the insurance company. It's just a few simple steps—safety first.

[DakotaAnn]

Selling the car and transferring the insurance directly? Dream on! As a young person, I made the same mistake last time I bought a car, thinking the insurance would automatically transfer. But the insurance company clearly said no. The original owner must actively cancel the policy, and the new owner must purchase a new one—that’s the right way. Don’t be lazy. My friend sold his car and forgot to cancel the insurance, and when it automatically renewed upon expiration, he lost money for nothing. If the new owner doesn’t get new insurance and gets caught driving without coverage, the fines will pile up. Even worse, there’s no protection in case of an accident. It’s not hard to handle: the original owner just needs to call the insurance company to cancel the policy, and the new owner can go to an insurance office to complete the paperwork—it’s all done in half a day, hassle-free. Remember to act promptly and don’t delay; safety is crucial.

[VanCora]

Insurance does not automatically transfer. After selling the car, the original owner needs to cancel the insurance, and the new owner must purchase a new policy. If this is not done, the insurance will be invalid in case of an accident, leading to unclear liability and multiple risks. It is recommended that both parties take action promptly to ensure legal protection and avoid future disputes. Simple steps can resolve this—safety first.