Is the insurance still valid after the car is transferred?
4 Answers
Vehicle insurance remains valid after the transfer, but it's important to note that the insurance should ideally be transferred along with the vehicle during the transfer process. Otherwise, there may be disputes over claims later on. Introduction to vehicle insurance transfer: Vehicle insurance transfer refers to changing the name of the insurance policy from the original owner to the new owner, as well as updating the license plate number. The insurance transfer must be completed after the vehicle transfer process, as the new vehicle information is required for the insurance transfer. Insurance transfer is not mandatory: Vehicle insurance, including commercial insurance and compulsory traffic insurance, does not require mandatory transfer. The original insurance can be canceled and a new policy can be purchased instead.
I was also concerned about the insurance transfer when I changed cars. Vehicle insurance does not automatically transfer to the new owner. While completing the ownership transfer procedures, remember to contact the original insurance company to update the policyholder information by submitting the new vehicle registration certificate, license plate, and the owner's ID card. If this isn't done promptly and an accident occurs, the insurer may deny the claim due to discrepancies between the policy and the vehicle registration details. Some insurers even require the changes to be completed within 14 days of the transfer; otherwise, they may demand a re-underwriting process. My advice is to contact the original owner on the transfer day to get the insurer's details and, ideally, visit the counter together to endorse the policy, transferring both commercial and compulsory insurance. Don’t skip this step—otherwise, the losses could be much greater in case of an actual claim.
As a vehicle transaction intermediary, I often see buyers overlook insurance transfer. After the vehicle registration transfer is completed, the original insurance policy remains valid, but the insured party is still the previous owner. At this point, the new owner must apply to the insurance company to change the insured, bringing the transfer certificate and the new original vehicle license. If the previous owner cancels the insurance themselves, the coverage is completely terminated. In one case I handled, a buyer didn't process the insurance change after the transfer and ended up scraping the wall while reversing, resulting in a denied claim of over 30,000 yuan in repair costs. The safest approach is to handle the insurance endorsement on the day of the transfer, especially noting that compulsory traffic insurance is a legal requirement, and driving without it can lead to penalties from traffic police. It's advisable to include insurance transfer in the purchase agreement and have both buyer and seller handle it together during the transaction.
Last time when helping my cousin with the used car transfer, I found that the insurance company required re-approval of documents. After the vehicle ownership change, the original insurance policy does not automatically transfer to the new owner. You need to bring the new owner's ID card and the vehicle documents after the transfer to the counter to fill out an endorsement application. Nowadays, some companies support online processing—just take photos of the documents and upload them. The most important thing to note is the timing. It is recommended to contact the insurance company within 48 hours after the transfer is completed. In our case, we completed the transfer in the morning and went to handle the insurance change in the afternoon—the whole process took only twenty minutes. Remember to handle both commercial insurance and compulsory traffic insurance simultaneously; otherwise, liability determination in case of an accident could be very troublesome.
