Is Insurance Transferred Along with Vehicle Ownership?
2 Answers
According to relevant provisions of the Insurance Law, when an insured vehicle is sold, transferred, gifted to others, or undergoes a change of purpose, the policyholder must notify the insurance company in writing in advance and apply for an endorsement. Once the insured vehicle is transferred, the original insurance policy becomes invalid. Additionally, after the transfer of a used vehicle, the auto insurance must undergo endorsement procedures for the insurance company to continue providing coverage for the insured vehicle. Below is a detailed introduction: Introduction 1: For the original owner, although they remain the policyholder and beneficiary of the insurance contract, they are no longer the owner of the insured vehicle's property rights and no longer have an insurable interest in the vehicle. Therefore, if the insured vehicle is involved in an accident, it will not cause them a loss, and even if the original owner is contacted, they cannot claim compensation. Introduction 2: After the vehicle ownership transfer is completed at the vehicle management office, the new owner should bring the transfer certificate, a copy of the vehicle registration certificate, the original insurance policy, their ID card, and the original policyholder's ID card to the original insurance company to fill out a transfer application form to complete the endorsement procedures for the transfer.
When transferring a car's ownership, the insurance doesn't automatically transfer with it. Insurance is tied to the owner, not the vehicle itself. Last time I sold my car to a friend, after completing the transfer procedures, I realized my old insurance was still active—he had to purchase a new one himself. Driving without insurance after the transfer is highly risky; in case of an accident, the insurance company might not cover it, leaving you to pay out of pocket. I recommend the new owner contact an insurance company immediately after the transfer to arrange a new policy—don't delay. Meanwhile, the original owner should cancel the old insurance to avoid continued charges. The transfer process includes registration at the DMV, but the insurance part needs to be handled separately—don't cut corners. Safety first, responsibility on your shoulders.
