Is the insurance still valid if the new owner has an accident after the car is transferred but the insurance is not?

[LaLondon]

For second-hand cars whose insurance has not been transferred, claims can still be made in the event of an accident. Article 49 of the new "Insurance Law" stipulates that the transferee of the insured subject directly inherits the rights and obligations of the insured, meaning the new owner can directly inherit the rights and obligations of the original owner after purchasing the second-hand car without needing to go through the transfer procedures with the insurance company. However, it is necessary to contact the original owner to handle the relevant claims procedures. Below is more information about car insurance: 1. Classification of car insurance: There are many types of car insurance, including compulsory traffic insurance, third-party liability insurance, vehicle damage insurance, full vehicle theft insurance, spontaneous combustion insurance, scratch insurance, etc. Different types of insurance provide different insurance liabilities. For example, if spontaneous combustion insurance is not purchased, the insurance company will not compensate for vehicle damage caused by spontaneous combustion. 2. Compulsory traffic accident liability insurance: To protect the interests of victims in traffic accidents, the State Council promulgated the "Regulations on Compulsory Traffic Accident Liability Insurance for Motor Vehicles" in 2006, requiring that the owner or manager of a motor vehicle driving on roads within the territory of the People's Republic of China must purchase compulsory traffic accident liability insurance for motor vehicles in accordance with the provisions of the "Road Traffic Safety Law of the People's Republic of China". 3. Reporting to the police for insurance claims on damaged vehicles: If a vehicle is damaged by itself and an insurance claim is to be made, it is necessary to report to the police. The traffic police will come to the scene to issue a traffic accident confirmation certificate, and the insurance company must also be contacted to take photos on-site as evidence before assessing the damage and making compensation.

[McMakayla]

Let me put it this way: if the car has just been transferred to a new owner and the insurance hasn’t been updated to the new owner’s name, the insurance generally won’t be valid in case of an accident. The reason is simple—the insurance policy is tied to the original owner’s name. If the new owner gets into an accident or hits someone, the insurance company will check the name, find it doesn’t match, and absolutely refuse to pay. I’ve been helping neighbors with car repairs in the community for decades and have seen plenty of similar cases: a new owner, in a hurry, skips updating the insurance after the transfer, then crashes into a wall; repair and medical bills pile up to nearly 100,000, all coming straight out of their own pocket while the insurance company won’t lift a finger. This is because insurance contracts operate on the principle of ‘insurable interest’—once the car is transferred, the original owner no longer has an interest, and the new owner isn’t covered. This rule is in place to prevent fraud and is quite fair. So on the day of the transfer, head straight to the insurance office and spend half an hour updating the name—don’t cut corners! An extra trip can save you from a major headache.