Is vehicle transfer insurance still valid?

Mondo Cars Updated on 2024-01-30

In the process of second-hand car trading, in addition to paying attention to the situation of the vehicle itself, vehicle insurance is also a link that cannot be ignored. So, when the vehicle is transferred, is the original insurance still valid?This article will answer the question for you.

First, the concept of vehicle transfer

The transfer of vehicle ownership refers to the transfer of the ownership of the vehicle from the name of the original owner to the name of the new owner, and the completion of the change of vehicle driving license, registration certificate and other related procedures. The transfer of ownership of the vehicle can protect the legitimate rights and interests of the new owner and avoid the risk of the vehicle being seized and seized due to the debt disputes of the original owner.

2. Classification of vehicle insurance

Vehicle insurance is mainly divided into two categories: compulsory traffic insurance and commercial insurance. Compulsory traffic insurance is an insurance that is mandatory for the state to compensate for the losses caused by traffic accidents to third parties. Commercial insurance includes car damage insurance, third-party liability insurance, vehicle personnel liability insurance, etc., which can be purchased according to actual needs.

3. Whether the insurance is valid after the transfer of ownership of the vehicle

1.Compulsory traffic insurance: According to the relevant regulations, the compulsory traffic insurance has the characteristics of accompanying the vehicle, that is, after the transfer of ownership of the vehicle, the original compulsory traffic insurance is still valid. However, the new owner needs to go to the insurance company within 10 working days after the transfer of ownership to go through the procedures for changing the main body of the insurance contract, and change the name of the insured and the owner of the driving license on the policy.

2.Commercial insurance: Commercial insurance generally does not have the nature of accompanying the vehicle, that is, after the transfer of ownership of the vehicle, the original commercial insurance may become invalid. The new car owner needs to contact the insurance company in time after the transfer of ownership to change the main body of the insurance contract or re-purchase commercial insurance.

4. Precautions for vehicle transfer insurance

1.When trading second-hand cars, you should pay attention to the type and validity period of vehicle insurance to ensure that the vehicle has effective insurance protection after the transfer of ownership.

2.After the transfer of ownership of the vehicle, the new owner should go through the procedures for changing the subject of the compulsory traffic insurance as soon as possible to ensure the effectiveness of the compulsory traffic insurance.

3.If the commercial insurance lapses, the new car owner should repurchase the commercial insurance according to the actual needs for more comprehensive protection.

After the transfer of ownership of the vehicle, the compulsory traffic insurance is still valid, but the new owner needs to go through the procedures for changing the subjectCommercial insurance may become invalid, and new car owners need to purchase a new car or change the subject. When trading second-hand cars, attention should be paid to the handling and change of vehicle insurance to ensure that the legitimate rights and interests of the vehicle are protected.

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