Is the insurance automatically transferred when the car is sold?
2 Answers
It can be transferred, but you need to go through the endorsement procedures. Here is the relevant information: 1. Endorsement: Mainly involves modifying some policy elements, with the key changes being the insured and the vehicle owner. The required documents are relatively simple—just bring the insurance policy and the vehicle transfer certificate. The original owner can handle this at the insurance company’s service branch where the policy was originally purchased. 2. Applying for a refund: This means canceling the original auto insurance policy and terminating the previous contract. In this case, you only need to pay the premium from the start of the policy to the time of cancellation, and the insurance company will refund the remaining premium. The new owner can then purchase a new auto insurance policy from any insurance company. For this process, the required documents include the insurance policy and ID card. When applying for new insurance, only the new vehicle license or the vehicle transfer certificate is needed.
I've sold cars several times, and the insurance never transfers automatically. You need to proactively contact the insurance company to inform them that the car has been sold, so they can cancel the original policy. If you don't cancel it, the insurance company may continue to charge you, wasting money for nothing. Moreover, if the new owner gets into an accident while driving, your name could still be involved, causing trouble. The new owner must purchase their own insurance from scratch because the old policy is tied to the original owner's name and can't be used. They need to get new coverage as soon as they take over the car to drive legally. I remember the last time I sold a car, I immediately called to cancel the insurance, and the buyer promptly got new coverage, so both parties were at ease. Don't expect the system to handle this automatically—taking action early saves you time and hassle.
