What are the consequences of not transferring insurance when selling a car?
2 Answers
The consequences of not transferring insurance when selling a car are as follows: If the insurance is not transferred, in the event of a traffic accident after the used car transaction, the owner may be denied compensation when filing a claim with the insurance company. Relevant information about used car insurance transfer is as follows: 1. There is no fee for transferring used car insurance, and the required materials are simple. The vehicle does not need to be inspected by the insurance company. 2. Both parties involved in the transaction only need to bring the original car insurance policy, used car transfer ticket, new vehicle license, registration certificate, and original and photocopies of the ID cards of the original owner and the new owner to complete the procedure. 3. After the insurance company processes the transfer, they will review the application and issue an endorsement accordingly, completing the insurance transfer.
As someone who sold a car but didn't promptly handle the insurance transfer, I feel this issue is quite serious. If the insurance remains under my name, in case the new owner gets into an accident, the insurance company's first reaction would be to claim compensation from me, and my premiums might even increase. I remember last time when I forgot to transfer the insurance after selling a car, months later I received a payment notice from the insurance company—the car was long gone, but the bill was still there. It took me several days to cancel the insurance, and my credit was almost affected. It's also troublesome for the new owner—driving without legal insurance could lead to fines or denied claims. After selling a car, be sure to contact the insurance company to handle the transfer or cancellation procedures to avoid future disputes. Failing to transfer the insurance can also affect the smoothness of the vehicle transfer, and the new owner faces greater risks driving uninsured. Simply put, it's better to settle the insurance matter early rather than deal with complications later.
