Refund of loan insurance after repayment of car loan

How to return life insurance on a paid-off car loan or until full repayment

How to return life insurance on a car loan is of interest to everyone who took out a policy but changed their mind about using it. Insurers do not always return money, so you need to know how legitimate their refusal is and what to do in such cases.

Is it necessary to have life insurance for a car loan?

It is not necessary to take out a life insurance contract. Sometimes the procedure is very convenient, because if something happens and you cannot pay the money, the insurer (insurance company) will do it. But no one has the right to force a deal to be concluded. Payment of funds for insurance services is a personal matter for each client.

Approximate bonus amount

The amount of insurance premium for car loans depends on the loan amount. Typically, a certain percentage of the loan amount is allocated for insurance. Most often, the policy costs no more than 1-1.5%.

How to refuse insurance when applying for a loan

It is better to discuss refusal of insurance at the beginning of cooperation with the bank before the contract is signed. The client must read all papers carefully before signing. It is the contract that contains information about life insurance obligations. After signing and receiving the loan, canceling this clause is problematic.

The bank can impose insurance, but it does not have the right to establish additional services as a mandatory condition.

How to get your money back

The possibility of a refund for life insurance is of interest to many, since not everyone is willing to pay extra for it. It is difficult to get a refund from insurance companies, because this is their income. But you can turn to them with such a request and get yours.

If the loan has not yet been repaid

A refund for insurance before the car loan is paid off is possible if you request it during the “cooling off period”. Previously, the period was 5 days, but in 2018 it was extended to 14 days.

The law allows you to cancel insurance during this period. If you invest within the specified period, the insurer cannot refuse to return life insurance.

But if the contract states that the fee is not refundable upon termination, then you cannot get the money back.

How to get your insurance back if you pay it off early

Refund of insurance upon early repayment of a car loan is real, but not completely, but only partially. An exception is provided only for those who managed to pay off their debts within a month.

To compensate for the insured amount on a car loan in case of early repayment, you must:

1. Visit a financial institution and fill out an application.
2. Come to the institution with a passport, contract and documents confirming that the loan has been repaid.
3. Wait until the bank makes a decision.
4. If there is no answer, prepare a lawsuit.

If insurance is included in banking services, then the money transferred will be the company’s income, and it is almost impossible to return it. But there are banks that meet customers halfway. If the loan is repaid ahead of time, then to return the funds you must be guided by the Civil Code.

After scheduled loan repayment

The chances of getting your car loan insurance refunded if the debt is paid in full are slim. The policy is issued for the entire loan period, so after the last payment its validity period ends, and no one cares whether an insured event occurred or not. The likelihood of a return is greater if:

1. The insurance was illegal and there is evidence that it was forced.
2. The company does not agree to voluntarily return the money.
3. The statute of limitations has not yet expired.

It is possible to get money back from life insurance with a car loan if all these conditions are met at the same time.

Refund through court

Whether it is possible to return car loan insurance with the help of a court depends on understanding the following points:

1. You will have to spend money on this procedure.
2. It is difficult to find evidence that a company's actions were unlawful.
3. Before the court hearing, you can write to the Insurance Supervision Service.

There is no guarantee that a positive result will be achieved.

To get your insurance money back, you must go to court with a claim drawn up in two copies. One of them must bear a note indicating acceptance by the defendant company. It is attached to the claim.

After writing the claim, it is sent to the arbitration court at the registered address. The case will be considered if the plaintiff comes to court with an insurance and loan contract and an application for the return of finances. You also need a certificate stating that the loan was repaid before the due date, and the bank’s response to your application.

After consideration, the court will decide whether the company should return the money or not.

Is the full amount refunded?

Refunding life insurance on a car loan is a complex process with its own nuances. It is difficult and sometimes impossible to return the full amount. More chances to receive a partial amount. But in such a situation, it is important to carefully study the terms of the loan agreement before signing it. There is no point in hoping that a bank or insurer will be loyal to the client, since these organizations never operate at a loss.

Which banks do not require life insurance?

To take out a loan without insurance, you must contact the following institutions:

But interest rates on loans in these financial institutions have their differences. For example, in Sberbank from 9% per annum, and in Rusfinance Bank - 15-20%.

To avoid problems and questions after applying for a loan, you should carefully familiarize yourself with your rights and obligations as a client of the credit institution. Each person must decide for himself whether to take out insurance.

Banks and insurers have no right to impose such services. You are not required to take out an insurance deal, but those who want to do so to feel confident should not refuse.

This is quite a profitable option, since in the event of an insured event, the insurer will cover the loan to the bank.

If you want to return the money, you need to be prepared for the fact that the process will be lengthy and possibly fruitless. It is especially difficult if the loan has already been fully repaid, since this indicates the fulfillment of the obligations of both parties.

Is it possible to return the funds paid for CASCO insurance with a car loan: in what cases is it possible? Registration procedure

When applying for a loan to purchase a car, financial institutions often insist on obtaining insurance, because this significantly reduces their risks and also ensures financial security for borrowers.

Types of insurance for car loans

The main type of insurance for a car loan is directly voluntary car insurance, that is, a CASCO policy. Taking out such insurance when taking out a loan to buy a car becomes a voluntary-compulsory process for motorists. On the one hand, the legislation considers CASCO insurance as voluntary insurance, and no one can force or force a citizen to take out it. On the other hand, if insurance is refused, banks have the right to refuse to issue a loan without giving reasons.

The second most popular type of insurance for a car loan is life and health insurance of the borrower.

In addition, some banks insist on issuing GAP insurance (an addition to CASCO, aimed at reimbursement of funds in the event of total loss or theft of a vehicle) or insurance of the borrower in case of job loss.

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Is it possible to return CASCO for a car loan?

Article No. 958 of the Civil Code of the Russian Federation states that the policyholder has the right to refuse the insurance contract if:

• the insured property was destroyed , but not due to an insured event (that is, in the case of car loans - not in the case of an accident);
• the need for the service has disappeared (in this case, the car loan has been repaid).

However, in accordance with the same article, the policyholder cannot receive funds previously paid to the insurer, unless this is provided for in the agreement concluded between them. Accordingly, first of all, if you want to return the funds paid for CASCO, the borrower must read the text of the insurance contract. Ideally, this should be done before its conclusion and an insurance company that meets the borrower’s requirements should be selected (for example, it provides for the possibility of early termination of the contract with a refund of the funds paid).

The insurance contract must specify the possibility or impossibility of terminating the contract and returning funds, as well as the deadlines.

But there are cases when you won’t be able to get your money back for insurance:

• the policyholder received insurance payments from the insurance company for the theft or destruction of the vehicle;
• the policy was purchased in installments and the payment was not paid or paid on time;
• the policyholder provided incorrect personal data or vehicle data to the insurance company.

There is another way to return the funds paid for CASCO - to prove in court that the service was imposed. However, you must understand that this will not be easy to do, and legal costs may be more than the money spent on insurance.

Who should return the money for CASCO

Refunds paid for CASCO insurance are made by the organization that entered into an insurance agreement with the policyholder. Most often this is one or another insurance company. Sometimes the insurance contract is included in the “body” of the car loan agreement, in which case the bank itself acts as the insured.

CASCO return procedure

In order to return the funds paid for the policy, if this possibility is provided for in the insurance contract, the policyholder must take the following steps:

1. Completely repay the debt to the bank.
2. Receive a certificate in the form of the bank about repayment of the loan amount.
3. Write an application to the insurance company in two copies , and put a mark on yours.

The application can be drawn up in free form, but must contain information such as:

• information about the policyholder : full name, address, contact details;
• information about the insurance company : name, legal address;
• information about the concluded insurance contract : number, date, amount;
• information that the policyholder no longer needs the service , as well as on what basis this happens (return to the bank the entire loan amount);
• a request to the insurance company to terminate the contract and return unused funds;
• policyholder details;
• list of attached documents;
• signature and date.

The following documents must be attached to the application:

• policyholder's passport;
• PTS;
• copy of the car loan agreement;
• CASCO policy, check for its payment;
• certificate of repayment of debt to the bank.

Each insurance company has its own rules for calculating refunds for insurance (if such is provided for by their regulations), which can be viewed on the organization’s official website.

But, you can roughly calculate the refund amount using the algorithm:

1. Determine the cost of a CASCO policy for one day : to do this, the total cost of insurance should be divided by the number of days (most often this is a year, that is, 365 days).
2. Determine the number of days on which insurance is no longer needed.
3. Multiply the number of remaining days by the cost of the policy per day.
4. Subtract the amount of expenses for conducting the case (RVD) from the resulting figure. Here it should be understood that the size of the RVD is different for all insurance companies, but is approximately 30-50% of the cost of insurance.

Refunds occur immediately at the insurance company's cash desk or within two weeks to the client's account.

Is it possible to get a refund for insurance if you repay a car loan early?

When repaying a car loan early, the same repayment mechanism works as when repaying on time. That is, you can use a refund if such an opportunity is provided for in a specific insurance contract.

Or ask a question to a lawyer on the website. It's fast and free!

Refund of car loan insurance

How to find the perfect loan without spending 10 minutes on it?

A borrower is not required to have car or life insurance when taking out a car loan. Therefore, if the policy was imposed, there is a way to return the money. We will tell you in the article how to return insurance immediately after purchasing it and after early repayment of the debt.

Is it possible to return insurance on a car loan?

The borrower has an unconditional right to a refund of the insurance premium on policies purchased when receiving a car loan. It is enough to declare your decision to a credit institution or insurance company (IC). It is important to notify employees in writing and keep confirmation of the application.

The only question is how much money you will be able to get back. It depends on situation.

Cases of refund of car loan insurance

The entire amount of the insurance premium can be returned if three conditions are met:

1. no more than 14 days have passed,
2. voluntary insurance,
3. There have been no payments under the policy yet, nor have there been any insured events.

Let's take a closer look at them. What does voluntary insurance mean? It includes the following types: life, risk of loss of job, title, CASCO, etc.

14 days is a federally established cooling-off period during which the client can change his mind and terminate the insurance contract without any consequences for himself.

In addition, the return of insurance for a car loan is possible after early repayment of the debt. The order and how much money you will receive back depends on the reason for which you decided to refuse insurance and return the money.

As applied to car loans, we will consider two more cases in detail. One of them is a refund for life insurance. The second is a refund under the CASCO policy.

Return of a life insurance policy for a car loan

Refund of life insurance on a car loan is possible at any time, since it is voluntary. The only difference is how much money you can get back. If a life insurance policy on a car loan was imposed by a bank employee, refuse it immediately in order to return the entire amount that the borrower paid for the policy. However, in this case, the bank may revise the car loan rate upward.

Most companies do not return the insurance premium if canceled after 14 days (for example, VTB Insurance).

Complete an application for cancellation of the policy and send it to the credit institution or directly to the insurance company. If more than 14 days have passed, the issue of returning the money will most likely have to be resolved through the courts. Before doing this, take a look at the insurance conditions of your insurance company. If it says that a refund is not possible after the end of the cooling period, alas, nothing can be done, since the borrower automatically accepted these conditions when signing the agreement.

How to return CASCO insurance on a car loan

Contrary to popular belief, CASCO is an optional type of insurance. However, the bank has the right to establish conditions under which it is impossible to obtain a loan without this policy.

Read the loan agreement carefully. If it contains a clause about compulsory CASCO insurance, calculate how much it will cost you. Weigh the pros and cons and only then agree to sign the contract. It may happen that the amount of the insurance premium for the entire loan term will cover all the benefits from the rate reduction (banks often offer a lower interest rate when purchasing insurance).

Refund of car loan insurance premium within 14 days

If the borrower decides to cancel the insurance contract immediately after signing it, with a high degree of probability all the money paid will be returned to him. However, if the agreement was valid for several days, the insurance company has every right to return the amount minus the cost of the service for these days.

But in any case, this is more profitable than paying for unnecessary insurance. Fill out a return request and send it to the insurance company. Within 10 days she must return the money to the account specified in the application.

How to get your life insurance back if you pay off your car loan early

Refund of life insurance when repaying a car loan early is the most common situation. The steps in this case will be the following: submit an application for early repayment, close the loan and obtain a certificate from the bank stating that there are no financial claims against the borrower. After this, you can apply for a refund of car loan insurance in case of early repayment. Send it to the insurance company.

How long the application is considered depends on the Investigative Committee. As a rule, the answer is given within 10 days and the money is transferred within the same period.

Application for refund of life insurance on a car loan

We looked at how to get your car loan insurance back. Let's move on to the necessary documents. Their list depends on the situation, as does the information that must be indicated in the application.

So, an application for the return of life insurance in case of early repayment of a car loan looks like this:

1. client information;
2. number of the contract with the insurance company and the loan agreement;
3. car loan amount;
4. date of making the last payment on the debt;
5. please return part of the premium.

Draw up the document in two copies and take it to the Investigative Committee in person or send it by mail. Save your shipping confirmation. This will come in handy in the future if you have to sue the insurance company. Attach to your application a certificate from a credit institution confirming the absence of debt and claims.

An application for a refund of the SK premium on a car loan within 14 days is completed differently. Let's look at the contents of the document using the example of Home Credit Insurance LLC:

• Full name and passport details of the borrower;
• insurance policy number;
• method of returning money - to an account, card, etc.;
• confirmation of the absence of payments under the policy and the occurrence of insured events;
• date and signature of the client.

Download a sample application on the website of the insurance company with which the contract is concluded.

Provide to the insurance company:

1. a copy of the policy;
2. copy of passport (pages with personal data and registration are needed);
3. payment papers confirming the payment of the premium to the insurance company account.

Money must be returned within 10 days. If the deadline has expired and there is no response or a refusal has been received, send a justified claim to the Investigative Committee with references to the provisions of the law. Be aware of your right to go to court.

An application to the court is drawn up in almost the same way as in the insurance company, with the only difference being that you need to write it in a more formal language, refer to the laws, have 100% confirmation of your case (documentary) and evidence of a previously submitted claim to the insurance company.

A few simple steps on how to return life insurance on a car loan

When applying for a car loan, the conditions for its provision are explained to the consumer.

This is compulsory compulsory motor liability insurance, voluntary motor insurance, life and health insurance of the driver. Is it really necessary for a car enthusiast to protect the risks of damage to the car, but also to his life?

Is it necessary?

Car owners are legally required to have one type of insurance – compulsory motor liability insurance. If the driver does not have one, penalties are imposed. Other types are voluntary. Including life and health insurance.

Nevertheless, banks require borrowers to take out insurance. This way they reduce the risk of non-payment of the loan.

Remember: it is illegal to include the obligation to obtain life insurance in a loan agreement.

The main regulatory act for the return of insurance is the Law “On Protection of Consumer Rights”. In Part 2 of Art. 16 of the Law prohibits the purchase of one service from the mandatory purchase of another product.

The consumer proves that the insurance service was imposed by the bank and was not chosen voluntarily. In this case, the agreement will be declared invalid. The credit institution will be required to return the amount paid.

How do banks deceive drivers?

When applying for a loan, the consumer focuses on his own benefit, on the lowest interest rate. Often the best offers from a financial point of view are fraught with a catch.

The bank pre-approves the loan. The consumer makes an advance payment for the car, then contacts the lending institution to sign documents. At this stage it turns out that a significant part of the borrowed funds is insurance. Bank employees inform you that the loan is approved only on these conditions.

Refusal to insure life and health will result in an increase in the interest rate or withdrawal of loan approval. In such a situation, the consumer is inclined to agree to the proposed conditions to save time.

They benefit from this state of affairs. In a standard contract, the amount of the insurance premium is included in the loan. It must be returned, plus interest will be charged for use.

The larger the amount issued, the more significant the portion is insurance. It can reach a third of the total loan. It is not a fact that the entire amount is transferred to the insurance company (IC). Credit institutions keep a portion for themselves as a commission for connecting to the insurance program.

The standard form of a car loan agreement contains conditions on the borrower’s voluntary consent to insure life. Employees of the credit institution explain the mandatory nature of this condition to the client orally.

Important: Read the agreement carefully. Ask for clarification of unclear points.

Who benefits from having a policy?

For some categories of drivers, insurance can be beneficial, since it provides for the repayment of the insurance company loan upon the occurrence of certain circumstances. They are:

• death of the debtor;
• causing significant harm to health.

The full terms and conditions of the insurance must be specified in the policy.

What is the price?

The amount of insurance compensation depends on many factors. Thus, citizens over 40 years of age are at risk, so it will be more expensive for them to get insurance. The driver's health also matters.

At the same time, the cost of insurance depends on the size of the loan. Sometimes it reaches a third of the total loan amount.

How to refuse insurance when taking out a loan?

If you do not want to pay insurance, you can try to conclude a loan agreement without it. By law, the bank is obliged not to interfere. However, the conditions under such an agreement are less favorable.

The credit institution will definitely increase the interest rate or loan repayment period. Or the bank will refuse to issue funds without explanation.

In this case, try going elsewhere. However, the situation with loan approval only with simultaneous life insurance is typical for most banks. It is problematic to refuse it when concluding a contract.

Is it possible to get my money back?

Since 2016, a cooling period has been in effect in Russia. This is the period during which a citizen can refuse insurance. This state program also applies to insurance for loans.

However, there are some subtleties here. You can return the insurance amount if the contract is concluded in the form of a separate policy. If the client has joined the collective program, the bank may refuse.

How much will they return?

The agreement has its own validity limits; they are not necessarily tied to the loan term. If the insurance does not take effect, then, at the request of the borrower, the insurance company is obliged to return the full amount. When the policy is already in force, the money is reimbursed minus the elapsed days.

In case of early repayment of a car loan, the insurance company is obliged to pay out funds for the remaining insurance period.

Please note: if you close the loan early, the insurance continues to apply. To return the unspent portion, you must write an application.

Return Application

Check your insurance conditions to determine who to address your request to. In some cases, you can submit your appeal directly to the credit institution, but most often you need to write to the insurer.

A sample application for termination of an insurance contract can be found on the company’s website. It is written in free form.

1. Personal information of the applicant.
2. Details to which the money is required to be returned.

If you want to receive cash, you need to clarify the possibility of this in advance.

When contacting the company in person, prepare a second copy of the application so that the insurance company can mark receipt. If you use postal services, send a registered letter so that you can track its receipt.

How to return life insurance on a car loan?

Receipt of the paid insurance premium is possible upon termination of the agreement. Art. 958 of the Civil Code of the Russian Federation provides for the right of a citizen to unilaterally refuse insurance if the need for it is no longer necessary.

However, Part 3 of this article stipulates that the possibility of return is regulated by the contract itself. It is necessary to carefully study the terms of insurance to find out whether you can get back what you paid in case of refusal.

In some cases, banks prescribe an increase in the interest rate by more than 1% for an existing loan.

If the loan has not yet been repaid

The best option is to return the money during the cooling-off period. It lasts 14 days. At this time, you need to send an application to the insurance company or bank. Often the possibility of refusing insurance is directly stated in the contract. The amount of the amount to be refunded is also regulated there.

Banks are inclined to meet consumers halfway and satisfy applications for termination of the contract. This is what Sberbank, Alfa-Bank, OTP, and Renaissance-Credit do.

There is a possibility that your return request will be refused. In this case, the contract can be terminated through the court.

After loan repayment

The consumer has the right to repay the loan early. In this case, there is no need for an insurance contract. The car owner can apply for a refund of the unused portion of the funds. The insurance company calculates the money in proportion to the days the insurance is valid and pays out the unspent portion.

What is important to remember when terminating?

Pay attention to all the terms of the agreement when receiving a loan. If its provisions directly state the impossibility of returning the insurance amount, it is better to choose another bank or company.

When purchasing a new car at a dealership, when lending, they require you to sign OSAGO and CASCO agreements. It is impossible to refuse these types of insurance, since they are directly related to the car.

Where can I go if the bank refuses?

The decision can and should be appealed. There are two options for authorities where you can turn to protect your rights.

To Rospotrebnadzor

The Rospotrebnadzor office in the region monitors the activities of entrepreneurs in the field of consumer protection. Consideration of complaints against the actions of credit institutions is within the scope of their activities.

To conduct an inspection against the bank regarding the refusal to terminate the insurance contract, you must submit an application. It describes in detail the current situation.

You can demand the return of the insurance amount through the court. Going to court is a lengthy process that requires material costs. To file a competent claim, it is better to contact professional lawyers. They will evaluate the documents and tell you whether it is possible to get the money or whether it is not worth wasting your time at all.

The consideration of a case in court takes from two months to six months. It depends on the activity and position of the parties.

Going to court does not guarantee a 100% positive result. This decision is based on proven facts. Banks professionally prepare documents to support their position in the event of a dispute. Therefore, it is important for the client to carefully study the loan agreement before signing it. Since the signature means the consumer agrees to all its terms and conditions.

Is it possible to apply via the Internet?

The court provides for paperwork. Filing claims to courts of general jurisdiction via the Internet on the territory of the Russian Federation is not provided.

You can contact the regional authorities of Rospotrebnadzor by filling out an electronic application form.

Chances of the parties in court

Going to court does not guarantee a verdict in favor of the consumer; the parties' arguments will be assessed. Documents are reliable evidence from the point of view of the law.

If in the loan agreement the client has signed provisions stating that he independently wishes to insure life and health, understands the voluntariness of this decision, and is also informed about the possibility of refusing the insurance service, the court critically perceives the plaintiff’s explanations that bank employees verbally warned that the loan would not will be approved without a policy.

It is important to weigh the amount of insurance a consumer may recover against the costs associated with taking the case to trial. Contacting a lawyer is expensive; consultations, drafting of documents, and participation in court are paid for. This amount may exceed the amount of the insurance premium that the citizen expects to be paid. In this case, going to court is not justified.

Useful video

How to get your insurance back after paying off your car loan?

When applying for a car loan, credit institutions put forward requirements for the mandatory availability of a CASCO policy, as well as life and health insurance for the borrower. This measure allows banks to reduce the risk of non-repayment of borrowed funds, and also provides financial protection to borrowers in the event of certain insured events.

Despite the fact that insurance policies are issued for the entire period of use of loan funds, the borrower has the opportunity to return the paid contributions subject to certain conditions and timely measures taken. Knowing how to return insurance after paying off a car loan, the client will be able to receive a large part of the premium paid in the event of early repayment of loan obligations.

In what cases is a refund possible?

According to Art. 958 of the Civil Code, the client has the right to count on a refund if the need for the service ceases. If the car loan is fully repaid on time or in full early repayment, the borrower who has paid for the life insurance policy for the entire loan period can return part of the insurance premiums for the unused period. Refunds can be made in the following cases:

1. Subject to termination of the life insurance contract due to cessation of need. It should be taken into account that early termination of an insurance contract in the presence of debt on a car loan may serve as a reason for the financial institution to demand full repayment and closure of the credit line. Therefore, repayment is possible only if the car loan is fully repaid.
2. In case of forced imposition of insurance when applying for a loan. Refusal from life insurance and return of the previously paid cost of a personal insurance policy is possible provided that there are clauses in the loan agreement regulating this procedure, or in court if the client can prove the fact that the service was imposed when applying for a car loan. Since it is quite difficult to recover life insurance on a car loan, it is recommended that you read the agreement carefully before signing it.

Stages of termination of an insurance contract

Termination of the insurance agreement is an integral part of the procedure for claiming previously paid premiums. In order to terminate the agreement, you must contact the insurance company with the following documents:

• application for termination of a life insurance contract;
• a copy of the loan agreement for the purchase of a car;
• a document confirming the fact of early repayment of the car loan.

The general procedure for terminating an insurance agreement includes the following steps:

1. Full repayment of loan obligations to the bank.
2. Receiving a certificate from a credit institution confirming loan repayment earlier than the deadline specified in the agreement.
3. Preparation of a written statement to the insurer about the intention to terminate the agreement and return previously paid insurance premiums.
4. The insurer makes a decision within 10 days on the return of funds and their immediate return.
5. The client's appeal to the court if the insurance company refuses to return the previously paid insurance amount on the loan.

When should you go to court?

When going to court, the borrower must be guided by the article “On Consumer Rights,” which prohibits the imposition of one service when purchasing another. Also, the rights of the borrower are protected by Article 958 of the Civil Code of the Russian Federation, which specifies the possibility of canceling the insurance contract when the need ceases.

However, if the borrower has signed an agreement that states that it is impossible to return the insurance, it will be quite difficult to resolve the issue through the court. Most often, the situation is resolved in favor of the plaintiff, who was able to convincingly prove that the credit institution was imposing the service.

Features of insurance return through court

Before you try to get your insurance back through the court, you should consider the following points:

• the limitation period must not exceed three years from the moment the issue arose;
• resolving the issue in court will entail certain costs for organizing the process. In some cases, the amount to be returned under insurance is insignificant and will not cover legal costs;
• before going to court, you can file a complaint with the Insurance Supervision Service;
• Only part of the insurance payments for the unused period of insurance is refundable. It will not be possible to return the full amount under a life insurance contract under any circumstances;
• the issue of returning life and health insurance through the court involves proof of the imposition of the service by bank employees, and therefore difficulties may arise in obtaining evidence.

Different financial institutions have different views on the issue of returning part of the insurance payments in case of early repayment of a car loan. When signing an insurance contract, clients rarely pay attention to the clause stating that the life insurance service is exclusively voluntary.

According to reviews from borrowers, in large financial institutions such as VTB24, AvtocreditBank, Rusfinance and Sberbank, the issue of returning insurance is most often resolved in favor of the client. At the same time, banks such as Binbank and Absolutbank are extremely reluctant to return insurance. That is why, when applying for a loan to purchase a car, you should carefully study the clauses of the agreement related to the rights and obligations of the parties when refusing insurance services.

How to avoid unnecessary problems when returning insurance?

The best way to resolve the situation peacefully and quickly is to carefully read the terms stipulated in the agreement being signed. Problems with returning part of the insurance will not arise if the agreement explicitly states a clause providing for such a possibility. In the absence of this clause, the insurer may refuse to return the previously paid premium due to the fact that the policyholder will be considered to have independently refused the service, and the insurance company has the right to decide the issue of payment at its own discretion.

If payments are made every year, insurance for the unused period during the year may be refunded. If the agreement is terminated in the middle of the year, only unused insurance for the next 6 months is refundable, i.e. half the annual fee.

The most questions arise with the return of funds in cases of payment of insurance prepaid for the entire loan period. Most often, in such cases we are talking about significant amounts of money, so the insurance company and the credit institution may refuse to return the funds, and the issue will have to be resolved in court. For this reason, when applying for a car loan, it is recommended to use the option of annual renewal of the policy, reducing the risk of overpayment in case of early repayment.