Is insurance valid when selling a car?

What to do with insurance when selling a car?

Car insurance is convenient for vehicle owners, as it allows them to compensate for unplanned expenses. The only disadvantage of car insurance is the cost of this service. When using the car, the cost of purchasing insurance pays off. But what to do if the vehicle is sold, but the policy is still valid?

For car owners who are faced with this situation for the first time, the question is quite difficult. But in practice, solving this problem is not difficult; the remaining funds will not be lost if you follow a certain algorithm of actions.

What to do with the MTPL policy when selling a car?

The MTPL insurance policy is issued by the car owner when purchasing a car. In the future, it is extended until the vehicle is disposed of or sold to another owner.

It is quite problematic to predict the time of sale by the end of the policy.

Usually the reason for the sale is due to certain circumstances that have nothing to do with insurance.

In accordance with paragraph 8 of Article 15 of Federal Law No. 40-FZ “On Compulsory Motor Liability Insurance” dated April 25, 2002, the insured driver is obliged to notify the policyholder of changes in essential information specified in the insurance contract. Such information, in particular, includes information about the owner of the car.

When selling a vehicle, the MTPL insurance policy can be:

re-registered to a new owner;
terminated with the return of the unused portion of the funds.

The policyholder should be contacted as soon as possible after the official transfer of ownership.

When returning funds, the calculation is made from the date of the written request to the policyholder, and not from the moment the purchase and sale agreement is concluded.

Can the policyholder keep the compulsory motor liability insurance?

When selling a car, the car insurance loses its relevance. The policy is registered on a specific car and it is impossible to use it on another car without notifying the policyholder. But OSAGO is very loyal to a change of owner or early termination of contractual relations.

After signing the purchase and sale agreement, the owner must decide on the priority of his actions. If he wants to keep the policy for himself, then this can be done by re-issuing documents for another car. This procedure occurs quite often when the sale of one vehicle entails the purchase of another.

Theoretically, the seller can keep the insurance for himself just like that, but this entails a loss of funds and does not make any reasonable sense. You cannot use a policy that has not been renewed.

How to transfer insurance to a new owner?

Renewal of insurance is carried out in one stage. The procedure is simple, but has its own mandatory steps. To enter the details of the new owner, the seller and buyer must visit the office where the original insurance contract was concluded. If the OSAGO remains with the same owner, but he changes the car, then only the owner of the policy comes to the office.

When visiting the office you will need to present the following package of documents:

OSAGO policy.
Vehicle purchase and sale agreement.
PTS of a sold car and PTS of a new car, if we are talking about changing the car in the papers.
Identification card of the new owner when the owner of the policy changes.

Re-registration may entail a recalculation of the cost of insurance. This is possible in two cases - the new driver has less experience, and a car with more power fits in.

Do you need insurance when selling a car?

The process of transferring a car from the seller to the buyer does not require an insurance policy. A vehicle may not have a valid vehicle license at all, but still be sold.

Insurance may only be needed if the car is sold without re-registration of the document.

You can sell a car by signing a general power of attorney. In this case, the rights to the car nominally remain with the previous owner, and the new owner has the opportunity to freely use the vehicle. The two parties can go to the policyholder's company and add the trustee's details to the policy. When entering data for a new user into OSAGO, its validity period does not change.

How is the new owner’s data entered into the contract?

A new owner can be included in the insurance document by terminating the old one and concluding a new policy, or by making additions to an existing contract.

In the first option, the data entry process looks like this:

a written application for termination of the contract is drawn up;
a package of mandatory documents is provided, which includes, among other things, the vehicle’s DCP;
a new insurance contract is concluded with information about the buyer and owner of the car. If necessary, the cost of services is recalculated.

When entering data into a valid insurance document, the procedure is performed as follows:

Discuss with the buyer the terms of the transfer of compulsory motor liability insurance. It is recommended to enter into an agreement to pay the full cost of the policy to the seller.
Write an application to make adjustments to the vehicle registration certificate.
Visit the policyholder together - the seller and the buyer.

Typically, insurance companies have nothing against such changes and freely introduce new information.

How to terminate the agreement?

The MTPL insurance contract can be terminated at any stage of cooperation. Selling the machine is also a valid reason to terminate service. If the relationship is broken, the car owner has the right to receive back those funds that were paid for the unspent period.

The refund amount is calculated as the difference between the elapsed period and the remaining period. In this case, the client receives not 100% of the difference received, but only 77%. The remaining 23% goes to the following needs:

20% to cover the costs of the insurance company;
3% is transferred to the Union of Russian Insurers.

Each insurance company has its own algorithm for terminating contractual relations, but, in general, it consists of three stages:

The car owner contacts the policyholder and writes a written statement.
A package of documents is provided.
The balance is calculated.

At the last stage, the insured receives the cash difference in his hands.

Where to go?

To terminate the car insurance contract and receive the remaining amount, you must contact the policyholder directly. Contractual obligations can only be terminated by the company where the contract was concluded.

What documents will need to be provided?

To terminate cooperation, the car owner will need to submit an application. The form indicates the reason for termination of the contract, information about the owner and information about the car. The application records the date of application, which is the point for calculating the remaining difference. The following documents are attached to the application:

original insurance contract;
document on the purchase and sale of a car;
passport of the insured.

You should also have receipts for payment of insurance premiums with you.

OSAGO can be terminated due to the sale of a car at any time. If necessary, the existing agreement can be renewed for a new owner or for another car. The insurer has the right to establish its own rules for the procedure for terminating contractual obligations.

What to do with compulsory motor liability insurance when selling a car?

All car owners are familiar with the concept of vehicle insurance. There are both voluntary and compulsory forms of insurance. But sometimes car owners may still have questions about the use of such insurance contracts (you can find out more about why you need compulsory motor liability insurance and the principle of its operation here).

If the owner of the car changes, the insurance contract continues to be valid in relation to the previous owner (you can find out more about how to apply for compulsory motor insurance when buying a used car and whether it is necessary to do so here). To terminate the contract and receive a refund for the unused period, you need to contact the insurance company and write a statement requesting termination of the policy.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.

If you want to find out how to solve your particular problem, please use the online consultant form on the right or call +7 (499) 938-40-67. It's fast and free!

Do you need car insurance when selling?

One of the important questions when concluding a transaction for the purchase and sale of a car is the question of what to do with the current policy (more nuances about early termination of the contract when selling a car and in other cases can be found in our article)?

It would seem that everything that is complicated here seems clear: this type of insurance is a mandatory procedure and you cannot drive a car without an MTPL policy , the contract is drawn up for a specific car, which will be driven by a specific owner, and when transferring ownership of the car to another person, it is necessary to draw up a new one motor vehicle policy (more details on how to make changes to the policy can be found here).

But there are a large number of nuances in the policy situation when a car is transferred from one owner to another. The most important thing you need to know is that the new owner will need the policy after the purchase and sale transaction is concluded. When concluding the transaction itself, this document is not required, and it is also not needed to deregister the car (read about whether a policy is needed when registering, as well as what other documents are needed, here).

What to do with the MTPL policy?

When concluding a sale transaction, you, as the former owner of this vehicle, can either give the policy to the new owner of the car or submit documents to terminate your insurance contract and ultimately receive monetary compensation for the unused time of the contract.

Each of these methods takes place and is negotiated by citizens carrying out a car purchase and sale transaction individually. As soon as an agreement is reached between the former and future car owners, they must inform the insurance company of their decision. This agreement is being reissued on the basis of an agreement concluded between the parties.

You have several options for saving your funds for the unused period of the contract:

Re-register the contract by agreement of the parties.
Include the new owner in the contract.
Execute early termination of the contract.
Transfer your insurance to another car.

Entering the new owner's data into the contract

If the former owner of the car gives his consent to the new owner using his agreement, then to do this they need to contact the insurance company where this agreement was concluded and inform about their decision.

In order to return their funds for the unused period of the contract, the former owner must enter into an agreement with the new owner that he, in turn, will pay him this compensation and have this agreement certified by a notary.

Such transfer of rights to the insurance contract is regulated by Art. 960 of the Civil Code of the Russian Federation , which states that when transferring ownership of a car to another owner, in whose name insurance is issued, all obligations pass to the new owner by agreement of the parties.

You can calculate the amount of compensation that the new owner must pay you yourself, but such an agreement must be notarized.

It is not necessary to conclude a new agreement on the transfer of rights to the policy to the new owner. Such a clause on the transfer of rights to compulsory motor liability insurance can be included in the purchase and sale agreement and, accordingly, endorsed by a notary. Such a procedure can only be carried out with the consent of the former owner .

Termination of the concluded agreement

If an agreement on payment of compensation for the unused time of the contract is not reached between the parties, then you can terminate such insurance early.

The insurance company will have to make compensation payments for the unused period of the policy (you can find out more about refunds for the unused period of the policy here).

In the car owners' liability insurance agreement, there are clauses that stipulate that when a car is sold, the rights to the car are transferred to the new owner from 00:00 the next day after the sale and purchase transaction is concluded and the car is transferred.

In order to receive compensation for the unused period of validity of the motor vehicle license, the purchase and sale agreement must be submitted to the insurance company on the day the transaction is concluded.

It is under such conditions that you can count on compensation from the insurance company. For payment of funds, you must contact the insurance company where the terminated contract was concluded.

This option of returning money for the policy period that you did not use is more reliable than a notarized agreement between the parties.

Upon termination, 23% of the cost of the insurance premium will be deducted from you, of which 3% will go to the RSA, and 20% will go to the costs of maintaining and registering this case .

Where to contact?

When re-issuing compulsory motor liability insurance, first of all you must decide who will deal with this legal issue.

There are 2 options:

Reissue the policy in the insurance company in which this agreement was originally issued. The company whose client you are most often treats this procedure more loyally.
You will need to find a new insurance company, here the choice depends more on the buyer than on the seller (you can find out more about how to choose an insurance company here).

The price for services for re-registration of contracts may vary from company to company. The price for re-registration does not mean an insurance premium , but rather the service of the organization’s employees for re-registration of documents.

When choosing an insurance company to renew your policy, pay attention to the bonuses and discounts that this insurance company offers. Don't miss out on this great offer. This will allow you to save slightly, but still. The insurance company can be assessed according to independent experts or according to the company’s rating in independent agencies.

Required documents

The first thing a new car owner should do is purchase an MTPL policy, since without it he will not be able to register his car, and he has the right to drive a car around the city without having a policy for no more than 10 days from the date of the transaction.

Further, for driving without a policy, penalties may be imposed by traffic police officers . But the citizen who sold the car should not forget about his insurance, because sometimes the amount of compensation is quite decent.

The date of termination of the policy is the date of filing the relevant application, and not the date of sale of the car.

There is no point in going to the insurance company to receive compensation without the necessary list of documents.

You must have with you:

A copy or original of your passport or a document replacing it.
Original auto insurance policy form.
A receipt confirming that you have paid the insurance premium.
Certificate-invoice.
The agreement on the basis of which the purchase and sale transaction was carried out.
A copy of the PTS with new information about the owner already entered.

The law provides for a period during which the insurance company is obliged to pay compensation and it is equal to 14 days. But practical experience shows that most often compensation payments are made on the day of application from the insurance company’s cash desk. If the client prefers non-cash payment, then it should be taken into account that the transaction in this case may take up to 5 business days.

If you calculate the amount of compensation yourself, do not forget to subtract 23% from this amount. This fee is regulated by law and is not a whim of the insurance company.

Registration process

As we already know, there are two options for re-registering the contract for the new owner of the car:

Terminate this deal.
Add the new owner to the insurance contract.

In order to terminate the contract concluded with the insurance company, you should:

Fill out the termination application.
Provide an insurance set of documents confirming the conclusion of the purchase and sale transaction.
Based on the documents you submitted, the insurance company employee will cancel this agreement.
You will be paid compensation for the unused period of the policy, minus 23%.

In order to add a new owner to the policy:

An agreement between the parties should be drawn up.
Have this agreement certified by a notary.
Write an application to the insurance company with a request to add the new owner of the car to the policy.
Both of you should come to the office to re-register the contract.

It is up to you to decide which option to choose.

The amount of compensation does not depend on whether there were any payments to the policyholder under this agreement or not.

If a citizen knows the deadlines for receiving compensation payments and the time allotted for resolving bureaucratic operations, then it will not be difficult for him to receive funds for the unused period of the contract when selling a car.

If the insurance company refuses to pay you compensation, citing the imminent liquidation of the organization, then you can file a complaint with the court , of course, if the amount of compensation is impressive for you and is worth fighting for. But the thing is that by default, during liquidation, payments are expected to be made to all policy owners for the unused period of the policy.

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Is it worth renewing CASCO and MTPL agreements when selling a car?

When selling a vehicle, there is a need to re-register not only the vehicle’s registration certificate with the traffic police. The details of the MTPL and CASCO insurance policies must also be changed. The insurance rules clearly state: the policyholder is obliged to notify the insurer of a change in the owner of the object of insurance protection and other essential details of the insurance contract. The situation with the re-issuance of a motor vehicle policy when the owner of a vehicle changes is spelled out in the law “On Compulsory Motor Liability Insurance”. With CASCO the situation is a little more vague.

Calculate CASCO insurance – in 18 companies in 2 minutes

Selling a car by general power of attorney

Re-registration of OSAGO

The rules of auto insurance are categorical: the MTPL contract can be terminated early only if the owner of the vehicle changes. The insurance contract may not be canceled after the sale of the car. But then the unused funds of the insurance company will actually be donated by the policyholder. A general power of attorney only gives the right to operationally drive a car. A citizen becomes a full owner only after drawing up a purchase and sale agreement (SPA) or issuing a certificate-invoice for the car. By the way, filling out the corresponding field in the car’s title is a minor procedure from the legal side.

Read more: How to start driving a car yourself
Therefore, it will not be possible to terminate the MTPL agreement in case of selling a car at a “general” price. You just need to add new drivers to your insurance policy. Moreover, this can be done within 10 days from the date of receipt of legal rights to the car. Before the expiration of this period, the holder of the general power of attorney is not required to take any actions with the MTPL policy.

Re-registration of CASCO

CASCO is a voluntary type of insurance. You can terminate the insurance contract or change its essential terms at any time while the agreement is in force. Depending on the insurance rules of a particular organization, a general power of attorney allows you to reissue CASCO insurance to a new beneficiary, add additional drivers to the policy and exclude the previous ones. If the new owner does not need a voluntary policy, then both the previous and the new owner of the car can terminate the contract. If, of course, a notarized power of attorney gives him the right to such actions.

Contract of sale

Re-registration of OSAGO

For the buyer of a car, the car title of the previous owner is not valid. Firstly, the owner of the vehicle changes. Secondly, when the vehicle registration certificate is reissued, its number changes. Thirdly, the state registration plate may change. All this data is displayed in the MTPL policy.

According to Law 40-FZ, only the original policyholder has the right to make changes to the auto insurance policy. After selling the car, the new owner has no legal grounds to ask a virtual stranger for this. Therefore, the MTPL policy cannot be reissued when selling a car under a policy. The former owner must terminate the insurance contract, and the new owner must enter into his own. Only the previous owner of the vehicle is entitled to receive funds under the old policy. Of course, if the new owner does not have a general power of attorney for these legally significant actions.

Re-registration of CASCO

When purchasing a car using a policy, the new owner of the vehicle has two options for dealing with the CASCO policy:

Terminate the contract.

Renew the CASCO policy for yourself.

However, we note that the situation with the renewal of the CASCO agreement is not so clear. Some insurers do not give their clients such broad powers. Thus, many companies refuse to enter into a CASCO agreement, where a third party is designated as the beneficiary. To prevent possible controversial situations, you must carefully study the insurance rules and the text of the insurance contract before signing it.

What to do with an MTPL policy when selling a car

Each car purchase and sale transaction is associated with the issue of further use of the MTPL policy. As a rule, at the time of selling a car, the validity of the insurance contract remains valid for several months. Depending on the intentions of the seller, in this situation there are several acceptable options for disposing of the policy.

Can the new owner take advantage of the MTPL policy?

The Law “On Compulsory Motor Liability Insurance” (Federal Law No. 40-FZ of April 25, 2002) provides clear clarifications on the issue of the rights of the new car owner to use the policy. The buyer of the car will be able to use the “motor citizen” when entering information about him into the insurance agreement. The following options for resolving the situation are acceptable here:

complete re-issuance of the current MTPL policy when selling a car - the powers of the owner and the insured are transferred in favor of the buyer;

closure of the policy and return of part of the funds;

entering information about the new owner of the vehicle into the current auto insurance policy.

The concepts of “insured” and “owner” of a car are not identical to each other.

Changing the owner’s data in the insurance contract does not eliminate the need for the participation of the policyholder (seller) in resolving all material disputes upon the occurrence of an insured event.

What should the previous owner do?

When re-registering a car title to a new person, the previous owner must contact the insurance company with a corresponding application. If the car is sold to a stranger, it is recommended to completely re-register the rights of the policyholder and the owner in the MTPL agreement.

Entering data about the new owner into the current contract without changing the policyholder is only appropriate if the rights are transferred to a close relative. At the same time, the previous owner of the car continues to operate it.

If the parties to the transaction do not wish to reissue the MTPL policy, the previous owner has the right to terminate the current contract.

Why is it important to close your MTPL policy?

The current MTPL Rules clearly state : refund of payments for the remaining insurance period is possible if there are compelling reasons for taking this action. Re-registration of rights to a car in favor of another person is included in the list of legislative grounds for terminating a contract with an insurer. Without cancellation of the agreement, the previous owner will not be able to claim any financial compensation.

How to get part of the insurance amount back

Refunds of compensation for an unused insurance policy are carried out on the basis of a written application from the previous owner of the car. The package of accompanying documents includes:

a copy of the policyholder's passport;

contract of sale;

insurance contract subject to cancellation;

Bank details of the recipient of the insurance premium.

Sample application for termination of the MTPL policy

Refunds for compulsory motor liability insurance when selling a car are carried out from the date following the submission of the request to the insurance company. The insurance premium calculation scheme looks like this:

Policy cost*number of remaining days in the insurance period/365 – 23% = amount to be refunded.

23% is calculated by default for various costs (payments to the insurance fund, RSA, etc.).

When are payments made?

Payment of compensation for an unused auto insurance policy is carried out within 14 days from the date of acceptance of the application from the policyholder. If the specified period is overdue, the insurance company must pay a penalty in the amount of 1% of the due amount for each day of debt to the client.

In what case does this not work?

According to the MTPL Rules, it will not be possible to return money for an insurance policy upon termination of the contract in a number of cases:

if the policyholder resorts to fraud and provides deliberately false information about himself and the vehicle in the documents;

if the insurance agreement is canceled due to the owner’s lack of need to operate the car;

if the MTPL policy was purchased in installments and payment has not been completed;

if the insurance company declared itself bankrupt.

Is it possible to reissue an existing MTPL policy?

The car seller can re-register the current vehicle license for another car. These actions are appropriate when selling an old car and buying a new one. The insurance will be reissued for the remaining validity period of the auto insurance policy.

The procedure is carried out on the basis of a written request to the insurance company, supported by a package of documents. The applicant will need:

a copy of your general passport,

a copy of the purchase and sale agreement of the previous car;

insurance agreement;

registration certificate for a new vehicle;

driver's license.

The condition for recalculating the cost of the policy is increased engine power in the new car.

FAQ

Is it possible to insure a car without being its owner?

The law allows for auto insurance rights for every driver who has a license and legal access to a vehicle. In this case, the person will act as the official insurer of the car. In addition to the basic documents, you will need to provide a power of attorney from the owner of the car for the procedure for issuing an MTPL policy.

How many people can be included in the policy?

Insurance companies allow the possibility of specifying any number of people in the insurance contract. You can specify the owner of the car, the policyholder, and other persons who have access to driving the vehicle. Each driver can be assigned a separate insurance class, which can affect the reduction in the cost of “car insurance” in the future.

Is it possible to avoid costs of 20% of the premium amount when refunding money for an unused policy?

There is no requirement in the legislation to realize costs when compensating the insurance amount. Such a rule may not be specified in the insurance contract itself. These regulations are not legal, which means that the car owner has every chance to defend his material rights in litigation. At the same time, the costs of litigation will be higher than the insurance fee of 20% of the policy value.

Let's sum it up

When selling a vehicle, the owner has four options for disposing of the MTPL policy. He can initiate a complete re-registration of the car title to the new owner, or enter his data into the current insurance agreement. The contract can be canceled by refunding money for the unused insurance period. The law also allows for the possibility of re-issuing a valid policy from an old vehicle to a new one, provided that the engine power in the purchased vehicle is increased.

Issues relating to motorists' rights are often more important than they appear at first glance. A driver may lose his license or suffer other severe penalties due to ignorance or misinterpretation of laws and regulations. Do not be lazy to dive deeply into the essence of the issue being studied, do not hesitate to ask advice from professionals.

Read more: How to restore a driver’s card from a driving school
Insurance when selling a car: is it necessary and what to do with the policy when drawing up a contract?

Buying a car second-hand is not a rare occurrence. However, often both the seller and the buyer have questions regarding car insurance.

The new owner is interested in whether it is necessary to re-conclude a car title agreement and when to do this, whether it is possible to purchase it along with the car. And for someone who sells a car, it is important to be able to get the money back if the insurance is not used.

This has become especially relevant in recent years, since the cost of compulsory motor insurance has increased significantly. And if a CASCO agreement was also issued for the vehicle, then the amount returned by the insurance company can be quite significant.

Is compulsory motor liability insurance necessary or can the car be sold without it?

According to paragraph 1 of Art. 4 No. 40-FZ, the obligation to enter into a car insurance agreement arises with the owner only if the car is used . Moreover, the frequency of use is not important, even if the owner or another trusted driver gets behind the wheel once a year, the law obliges him to enter into an agreement. However, in order to sell a car, a compulsory motor liability insurance policy is not required.

Thus, if a car passes to a new owner, which the previous owner did not drive, then there may be no compulsory motor liability insurance policy, and this is not an obstacle to concluding a purchase and sale agreement. But if the vehicle was regularly used, then a motor vehicle license agreement for it must be concluded.

The obligation to conclude an agreement occurs immediately after the emergence of ownership, that is, after the conclusion of a purchase and sale agreement and the transfer of money to the old owner.

What to do with the policy during a transaction?

When selling a car, the previous owner reasonably has the question of what to do with the MTPL policy, because the money has already been paid for it, and he no longer owns the car that appears in the contract.

There are several options: terminate the auto insurance contract and receive the money, reissue the policy for a new owner or for a new car if you plan to purchase one. In this case, you will have to contact the insurer's office and spend a certain amount of time.

However, if the unused period of insurance is significant, or if the car has a CASCO agreement, the funds received may justify all the efforts.

Re-register for a new car

If the seller plans to purchase a new car, then he may not transfer the old policy to the buyer and not terminate it, but renew it for a new car. There are no legislative obstacles to this, because civil liability insurance is provided to the owner of the car, and not to the property itself .

However, in practice this method is rarely encountered. There are several reasons for this:

Obstacles on the part of the insurance company, for whose employees this is extra paperwork without payment for the sale, because the contract is not newly concluded.

Buying a new car often does not happen at the same time as selling the old one, and it is more profitable to first return the money and then buy a policy for the new vehicle.

If the power of the new car is higher, you will have to pay extra when renewing your policy. In the opposite situation, the money is not returned.

The period of use of the new car will begin when the application was submitted , and will end simultaneously with the expiration of the policy, unless otherwise provided in the old contract. Therefore, if a significant amount of time passes between the sale of an old car and the purchase of a new one, it will be more profitable to terminate the existing policy and then conclude a new one.

Re-register to new owner

This requires prior agreement between the seller and the buyer. The policy can be transferred either free of charge or for payment of the remaining amount of insurance.

This possibility is legally regulated by Art. 960 of the Civil Code, which states that when ownership of the insured property is transferred to a new person, the rights and obligations under the insurance contract also pass to this person. This can be documented in the form of an additional agreement to the purchase and sale agreement or reflected in the agreement itself.

This method is inconvenient because the old owner remains the policyholder, so his personal presence will be required both when re-issuing the contract and when making any changes during the validity period.

Refund money for unused policy

To do this, you will need to contact the insurer's office as soon as possible, since the calculation of the refunded funds is made from the moment the application is submitted. Required documents:

application for termination of the contract and refund of money;

original policy and payment receipt;

policyholder's passport;

car purchase and sale agreement (copy);

bank account details if the transfer is planned by non-cash method.

This method is used most often because it does not bind the new and previous owner of the vehicle, and allows you to receive fair compensation for unused insurance.

How to get your money back for MTPL insurance when selling a car is discussed in a separate article, and how to write an application for termination of a contract and a refund and what documents need to be attached to it, read here.

What documents will be needed?

The package of documents provided is standard ; the insurance company has no right to request anything else. When contacting the company's office, you must have with you:

Application for amendments (usually completed at the insurer’s office on its letterhead according to a specific template).

Original policy and payment receipt.

A copy of the purchase and sale agreement.

Documents for a new car:

PTS;

registration certificate;

diagnostic card - if the policyholder wants to renew the policy for his new car.

Policyholder's passport.

Passport and driver's license of the new owner, as well as driver's licenses of all persons whom he plans to allow to drive - if the MTPL agreement is reissued to the new owner of the car.

It should be borne in mind that an additional payment may be required, but only if the risk increases : a change in the region of registration, the admission of young and inexperienced drivers or an unlimited number of people. In all other cases, attempts by insurer employees to charge a fee “for processing documents” are illegal.

Can the insurance company refuse?

There are no legal grounds for refusal, but in practice this occurs quite often. Employees do not want to waste their time re-issuing documentation, pushing drivers to enter into a compulsory motor liability insurance agreement again.

In this case, you should refer to the relevant regulations, provide the entire package of necessary documents and be persistent.

What to do with CASCO?

If the car has a CASCO policy, which costs much more than compulsory motor liability insurance, the previous owner is also interested in returning part of the funds for unused protection. However, in this case it is impossible to say unambiguously whether such an option is possible. Art. 958 of the Civil Code of the Russian Federation states that in case of early termination of the contract at the initiative of the policyholder, the amount of the paid premium is not returned, unless otherwise provided by the contract.

Most large insurers still provide a similar option, while reserving the right to pay not all the money for the remaining period, but minus a certain penalty.

It remains possible to renew the contract for the new owner, if this is provided for by its terms. At the same time, the insurer may require additional payment if the risk increases : new drivers with less experience and experience are allowed to drive.

When selling a vehicle, the old owner must weigh all the options and decide what is most profitable for him to do with the MTPL and/or CASCO policy.

Termination of the contract will not always be the best option: for motor insurance, the insurer will return only 77% of the amount for the period remaining after filing the application, and for CASCO, the owner may be left with nothing or lose a significant part of the money - it all depends on the terms of the contract.

It is possible to transfer the policy to the new owner - free of charge or by receiving payment from him for this. In this case, the policyholder must personally visit the company’s office to make changes to the policy. An additional payment may be required when adding new drivers with less experience and experience to the contract, when allowing an unlimited number of people to drive, or when changing the region of registration of the car.

Read about whether you can get your money back for CASCO when selling a car and how to do it here.

Re-registration for a new car is possible only for an MTPL policy. However, if the new car is more powerful, the insurer will also take an additional payment for the increased risk.