Will There Be Consequences If Commercial Insurance Is Not Transferred After Selling a Car?
2 Answers
Regulations stipulate that commercial insurance must be transferred. In the event of serious accidents resulting in casualties or disabilities, where substantial compensation is required and the new owner is unable to pay, the original owner will bear joint liability. Consequences of not transferring commercial insurance after selling a car: The impact is that in the event of serious accidents resulting in casualties or disabilities, where substantial compensation is required and the new owner is unable to pay, the original owner will bear joint liability. During the validity period of the insurance, if the insured vehicle is sold, transferred, or gifted, the policyholder must apply for policy modification; otherwise, the insurance company has the right to refuse compensation. Procedures for transferring insurance: The original owner must provide their ID card, vehicle registration certificate, registration documents, car purchase invoice, and insurance policy. The buyer must provide their ID card, license plate, and used car transfer certificate. After submitting the required transfer documents, the original owner should go to the insurance company to update the information, and the insurance company will issue an endorsement for the insurance modification.
I encountered the same issue when selling my car last year. Not transferring the commercial insurance promptly really caused problems. Firstly, the insurance was still under my name. If the new owner had an accident on the road, the claim might have involved me, which was a hassle. Secondly, when the new owner tried to use the insurance for repairs or compensation, the insurer could refuse to pay because the policy wasn’t transferred to them. Financially speaking, I wasted money paying for insurance during a period when I wasn’t even driving the car—thousands down the drain. Additionally, if the new car had traffic violations or accident records, the insurer would attribute them to me, potentially raising my premium next year. My advice: within 48 hours of selling the car, contact the insurer to cancel or transfer the policy. Just bring the vehicle license and sales contract to get it done—much less stress. Don’t wait until problems arise like I did.
