What does first-time insurance mean after a used car transfer?
2 Answers
It means that after the used car transfer is completed, the owner starts purchasing insurance anew. Below are several recommended types of auto insurance: 1. Special coverage for non-deductible: This type of auto insurance has regulations and includes an absolute deductible rate. In case of an accident where the owner is fully responsible, the highest deductible rate is 20%. 2. Vehicle damage insurance: Vehicle damage insurance is for self-compensation. If your car is involved in an accident, the losses can be compensated by the insurance company through this insurance. After purchasing this insurance, the owner does not need to bear the cost of car repairs, making it a very important insurance for the vehicle itself. Vehicle damage insurance includes accidental traffic accidents within the compensation scope. 3. Third-party liability insurance: In the event of a traffic accident where you are primarily at fault, third-party liability insurance is crucial. 4. Compulsory traffic insurance: According to China's traffic regulations, every car must pay an annual fee for compulsory traffic insurance. If you are caught driving without compulsory traffic insurance, you will be penalized with points and fines. After purchasing compulsory traffic insurance, you will receive an insurance sticker that must be affixed to the front windshield of your car. Failure to display this sticker will result in points and fines.
As a new owner who just bought a used car, I went straight to purchase my first insurance policy right after completing the transfer procedures the other day. This is what we call first-time insurance enrollment. Actually, this step is particularly crucial because the previous owner's insurance follows the person and can't be directly transferred to me as the new owner. I remember bringing all the required documents like the transferred vehicle license, my ID card, and the vehicle registration certificate to the insurance company to start the insurance application from scratch. First-time insurance enrollment for new owners is different from direct policy renewal - the insurer will reassess the premium rate based on my actual driving profile and age. I specifically compared quotes from several companies and selected an insurance package that better suits my daily commuting needs, since a newly acquired used car requires more comprehensive coverage.
