Is the Insurance Transferred Along with the Used Car?

[StCody]

When transferring ownership of a used car, the insurance must undergo a separate transfer procedure to be reassigned to the new owner. For some vehicles, compulsory traffic insurance can be directly transferred with the car, eliminating the need for a separate process. Typically, if the original insurance of the used car has not expired, after completing the ownership transfer, the new owner should update the registration certificate details, obtain new license plates and the vehicle registration booklet, and then both parties can proceed with the insurance transfer and hand over the insurance policy. According to the "Insurance Law," when the subject matter of insurance is transferred, the transferee inherits the rights and obligations of the insured. This clause is designed to protect the interests of the insured and fundamentally resolves past disputes arising from the transfer of the insured subject matter. However, it is important to remind car owners that the law also stipulates that the insured or transferee must promptly notify the insurer of any transfer of the insured subject matter. If the insured or transferee fails to fulfill this notification obligation and an insurance incident occurs due to a significant increase in risk caused by the transfer, the insurer will not be liable for compensation. Relevant regulations are as follows: Article 18 of the "Regulations on the Registration of Motor Vehicles": When the ownership of a registered motor vehicle is transferred, the current owner must apply for a transfer registration with the local vehicle management office within 30 days from the date of delivery. Article 19: To apply for a transfer registration, the current owner must complete an application form, present the vehicle for inspection, and submit the following documents: proof of identity of the current owner; proof and documentation of the ownership transfer; the vehicle registration certificate; the vehicle license; for vehicles under customs supervision, a "Customs Release Certificate" or customs-approved transfer document must also be submitted; for vehicles exceeding the inspection validity period, a valid vehicle safety inspection certificate and compulsory traffic insurance certificate must be provided. Article 19 of the "Used Car Circulation Management Measures": After the completion of a used car transaction, the seller must promptly deliver the vehicle, license plates, and legal documents to the buyer. Legal documents include: the "Motor Vehicle Registration Certificate"; the "Motor Vehicle License"; a valid vehicle safety inspection certificate; proof of payment of vehicle purchase tax; road maintenance fee payment receipt; vehicle and vessel tax payment receipt; and the vehicle insurance policy. Methods for handling insurance after a used car transfer: The first method is to change the policy holder. This is straightforward: after the vehicle is transferred at the vehicle management office, the new owner brings the transfer receipt, a copy of the vehicle license, the original insurance policy, and their ID card along with the original policy holder's ID to the original insurance company to complete a transfer application form. The second method is to apply for a policy cancellation. Canceling the policy only requires paying the premium from the start date to the cancellation date, with the remaining premium refunded by the insurer. The new owner can then choose any insurance company to purchase new coverage. The original owner needs the policy and their ID card to cancel, while the new owner only needs the new vehicle license or transfer proof to apply for new insurance. Precautions for personal used car transfers: Verify the embossed number, engine number, and registration date on the title deed for any alterations. Before transferring ownership, check for any outstanding traffic violations and ensure the vehicle's compulsory insurance is valid. Only vehicles with no violations and valid insurance can be transferred. Check for the vehicle purchase tax payment receipt. Unpaid or tax-exempt vehicles may be required to pay the tax after transfer. When purchasing from a brokerage, a formal contract is signed. For private transactions, a written agreement should also be signed and kept as proof. Discuss in advance who will cover the transfer fees and inspection fees, and ensure both parties are present for insurance cancellation and transfer procedures.