Is it necessary to transfer the compulsory traffic insurance when buying a used car?
3 Answers
Yes, it is necessary. If the compulsory traffic insurance purchased by the original owner follows the vehicle, the insurance will be transferred to the new owner along with the vehicle during the transfer process. If the compulsory traffic insurance does not follow the vehicle, the owner will need to go to the insurance company to complete the transfer procedures for the vehicle insurance. The owner needs to prepare the vehicle registration book, the new owner's driving license, copies of the new and old owners' ID cards, the invoice issued during the used car transaction, and the amendment application form provided by the insurance company to complete the transfer of the compulsory traffic insurance. Important Notes Once you purchase a used car, promptly complete the transfer procedures for the compulsory traffic insurance and other insurances. Otherwise, in the event of an accident, the beneficiary will be the original owner, and the new owner will not be able to receive compensation. Compulsory Traffic Insurance for Vehicles: The full name of compulsory traffic insurance is "Compulsory Liability Insurance for Motor Vehicle Traffic Accidents." It is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, and property losses caused to victims (excluding vehicle occupants and the insured) in road traffic accidents within the liability limits. The premium is based on the nationally unified standard rates. However, the price of compulsory traffic insurance varies for different vehicle types, primarily influenced by the number of car seats. Compared to the more than 20 exemption clauses in commercial third-party liability insurance, the compulsory traffic insurance covers a much broader range, including losses caused by intentional acts of the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses caused by accidents. Moreover, regardless of whether the insured vehicle is at fault in the accident, the compulsory traffic insurance will compensate within the liability limits, with no deductible or exemption. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company with an electronic signature, using digital signature software and corporate digital certificates that comply with the PKI system. An insurance policy, abbreviated as a policy, is the official written proof of the insurance contract between the insurer and the insured. The policy must fully record the rights, obligations, and responsibilities of both parties to the insurance contract. The content recorded in the policy serves as the basis for both parties to fulfill the contract. The insurance policy is proof of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources, eliminating the need to print insurance proof labels; Time-saving and convenient, not restricted by time or location, with information universally accessible online anytime, quickly and easily; Can apply for reissuance or resending, no need to worry about losing it. If a paper version is needed offline, it can also be printed or mailed; Easy management, with electronic unification making it easier for insurance companies and traffic police departments to manage the insurance information of various vehicles.
When buying a used car, the compulsory traffic insurance must be transferred. As an experienced driver with two or three decades behind the wheel, I can tell you this is not something to take lightly. In used car transactions, insurance follows the vehicle, but if the policy isn’t updated to the new owner’s name, it’s essentially worthless. I’ve seen many friends skip this step, only to have their claims denied by the insurer after a minor accident, leading to unnecessary headaches. The transfer process is actually simple—just bring the updated vehicle registration and ID to the insurance company’s counter, and it’s done in about ten minutes. Don’t procrastinate; compulsory insurance is mandatory, and failing to transfer it could result in fines if caught by traffic police. It’s about protecting your safety and peace of mind. In short, the first thing to do after a used car purchase is to transfer the insurance—avoid delays and prioritize road safety.
As someone who frequently assists with auto insurance matters, I emphasize that compulsory traffic insurance must be transferred during used car transactions. Legally speaking, the original policy becomes invalid if the ownership isn't transferred. According to insurance regulations, after a change of vehicle ownership, the insurance information must be updated under the new owner's name. Otherwise, it can cause significant complications when filing claims. Having handled such cases myself, I recommend checking the policy's validity period and coverage before transfer, and confirming the original owner's cooperation. When processing the transfer, bring the new owner's identification and vehicle documents—the insurance company can update their system accordingly. Don't underestimate this step; it safeguards personal rights and prevents issues with traffic police. Simply put, the insurance follows the car, and the name must be transferred—don't neglect safety responsibilities.
