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.
