Is it possible to keep insurance when there is a change of owner?

What to do with compulsory motor liability insurance when the owner of a car changes?

After selling a vehicle, many drivers still have a compulsory MTPL insurance contract in their hands. For example, a car owner insured his “iron friend” for a year, but sold the car a few months later. What to do with the MTPL policy in this case, and can you count on compensation?

In this article we will try to answer the following questions - in what cases it may be necessary to re-register compulsory motor liability insurance to the new owner, what methods exist for transferring compulsory motor liability insurance to the new owner, how to reissue a policy and recalculate the insurance premium for compulsory motor liability insurance depending on the length of service and the size of the new owner's insurance policy.

Making changes or reissuing a policy?

After selling the car, the policyholder can perform the following actions in relation to the MTPL policy:

• terminate the contract and return part of the funds;
• reissue the policy to the new owner.

In what cases is termination appropriate?

As a rule, termination of the MTPL agreement occurs in the event of the sale of the vehicle. Some drivers like to use a car for no more than 3 or 5 years, after which they sell and buy a new one, so as not to waste time and money on repairs.

When is it appropriate to make changes?

Also in practice, there are cases when a vehicle simply needs to be re-registered from one family member to another. To make changes to the MTPL agreement when the owner changes, you will need to contact the office of the company where the agreement was drawn up. It is better to contact the central office of the insurance company, since branch employees cannot always make changes to existing insurance contracts.

Only the policyholder can make changes to the MTPL agreement. According to the MTPL agreement, the policyholder is the person who contacted the office of the insurance company to conclude an agreement. If the policyholder cannot personally contact the insurer, another person can do this on the basis of a notarized power of attorney.

What documents are required to change ownership?

To make changes, you will need a purchase and sale agreement, a passport of the new owner and the insured. It is on the basis of the purchase and sale agreement that the representative can change the owner in the current agreement. In addition to the documents, the insurance company will need to write an application for changes approximately as follows:

Application example

Director of an insurance company

LLC "Insurance Company"

From client Petrov I.I.

I ask you to make changes to the current OSAGO EEE agreement No. 0023458596 dated November 15, 2016. I ask you to change the owner of the vehicle on the basis of the purchase and sale agreement.

Will I need to pay extra for a change of ownership?

Making changes to an MTPL policy can be either paid or free. In particular, when changing ownership, the region of registration of the new owner will be taken into account. The cost of an MTPL policy depends on the territorial affiliation of the owner or, in simple words, on his registration. If the territorial coefficient for registration of the new and previous owner coincides, then no additional payment will be charged. If the coefficient for registration of the new owner is higher, then recalculation is carried out using a special formula and an additional fee is charged.

For example, Ivan Ivanov is registered in Moscow (territorial coefficient - 2). Ivan decided to sell the car to his best friend, who is also registered and lives in Moscow. Since the regions of territorial use of the vehicle coincide, the insurance company will make changes free of charge.

For example, Ivan Ivanov lives in Saratov (territory coefficient 1.6). Ivan sold the car to a driver who is registered and lives in Moscow. Since the regional indicator for the new owner is higher, a representative of the insurance company will recalculate and charge an additional fee for the change of owner.

Termination of MTPL policy

If the owner of the vehicle does not intend to reissue the MTPL insurance policy to the new owner, he can terminate it. To terminate, you will need to contact the central office of the insurance company where the contract was drawn up. To terminate you will need:

• policyholder's passport;
• contract of sale;
• personal account details.

The first thing you need to do is fill out an application. The insurance company manager can provide the approved application template to the client. Copies of documents must be attached to the application. The entire package of documents is sent to the insurer’s accounting department for calculation and return of the unused portion of the insurance premium.

According to the current law, upon termination of compulsory motor liability insurance, costs of conducting the case equal to 23% are charged. To estimate the amount of the refund, the accountant must calculate the number of unused days. After this, all that remains is to calculate the cost of the contract for 1 day, multiply by the number of remaining days and subtract 23% from the resulting amount.

For example, Ivan Ivanov took out a compulsory motor liability insurance policy on August 25, 2016, with an insurance period from August 25, 2016 to August 24, 2017. The insurance premium under the contract amounted to 7,321.65 rubles. Ivan applied to terminate the policy on February 7, 2017. After receiving the full package of documents, the insurance company accountant performed the following calculations:

• cost of MTPL for 1 day: 7,321.65 /365 = 20.05 rubles;
• number of unused days: from February 7 to August 24 - 199 days;
• amount to be refunded: (199 * 20.05)-23% = 3,072.26 rubles.

It turns out that Ivan will receive a refund in the amount of 3,072.26 rubles.

Important information for car owners!

Please note that if a vehicle is sold under a general power of attorney, the owner of the vehicle in the MTPL agreement does not change. The policyholder just needs to register the new owner as the driver and entrust him with driving.

In addition, only the policyholder can make changes to the MTPL policy. It is worth taking into account that for subsequent changes, the new owner must ask the policyholder to contact the company and write an application for making changes. The only solution to the problem, which will allow you not to disturb the previous owner if more changes need to be made, is to issue a notarized power of attorney.

Upon termination of the contract, the insurance company is obliged to return the funds within 14 working days. You should always keep a copy of the termination application signed by an employee of the insurance company. If the company does not make the return on time, you can file an application with the court.

When an insured event occurs, it is the owner who will receive the payment. If changes after the change of owner were not made to the insurance contract, the company will refuse payment. In addition, you need to know that the new owner cannot drive a car without making changes to the MTPL policy. When it is not possible to make changes to the current policy, the new owner must independently contact the insurer to purchase a new contract.

Conclusion

If the owner of the vehicle has changed, he must either issue a new MTPL policy or make changes to the current one. Moreover, after selling the car, the former owner can terminate his contract and return part of the money for unused days of insurance.

What to do with compulsory motor liability insurance when changing ownership - we consider all possible options for action

The last thing that motorists who sell their car keep an eye on is the validity period of the compulsory motor liability insurance policy. This phenomenon puzzles both sellers and buyers of cars, which in principle is not surprising, because something needs to be resolved with the remaining insurance.

In practice, there are not so few options for what to do with compulsory motor liability insurance when changing the owner of a vehicle, so the range of possible actions in such circumstances is quite wide. We will talk about them in more detail in the article below.

What can you do with compulsory motor liability insurance when changing ownership?

It’s easy to apply for compulsory motor liability insurance!

As noted earlier, situations in which the owner of a car changes with a still valid MTPL are not uncommon today. Of course, leaving insurance unattended is not so rational, because money was paid for it.

It’s one thing if the policy lasts 1-2 months, but what if it “hasn’t lived out” even a quarter of its validity? In such a situation, there are several options:

• renew the MTPL for a new car, while keeping the policy with you;
• re-register compulsory motor liability insurance for the new owner of the car;
• return the insurance to the company and receive compensation;
• enter a new person into the “motor citizen” and give the policy to him for use (only possible if
• the car is transferred for use to another person under a general power of attorney).

Each of these procedures has its own characteristics, which are important to know and take into account when choosing a particular course of action. So, for example, a change of owner in the MTPL policy to the new owner of the car does not completely transfer to him all the rights and obligations regarding insurance.

The fact is that the concepts of “policyholder” and “owner” are very different. That is, the policyholder is the person who received the insurance and for whom it was issued, and the owner is the direct owner of the car. Given this difference, it is worth understanding that if you need to use insurance, all the bureaucratic “fuss” will be on the policyholder, and not on the owner of the car.

It is most convenient to change only the owner in the MTPL policy if the car is sold or given as a gift to a relative or close friend, but if the transaction is concluded with a stranger, both the owner and the insured must be changed in the insurance, which is not always possible or easy to implement.

How to reissue a policy

We must not forget about the validity period of compulsory motor liability insurance

As noted earlier, when selling or donating a car included in it, compulsory motor liability insurance can be re-registered either to the new owner of the car or to a new vehicle. To carry out any type of policy renewal, the following measures will have to be taken.

• Firstly, it is important to verify the availability and, if necessary, prepare the following documents:

1. the MTPL policy itself;
2. gift or sale agreement;
3. passport of the current policyholder under the policy;
4. if you want to change the car in the policy - the title of a new car that will fit into the policy;
5. when changing the owner and insured - the PTS of the old vehicle and the passport of its new owner.

• After preparing the documentation, you must visit the office of the insurance company that issued the MTPL. It is important to take into account here that when changing the owner and insurer, the presence of both the new and old owner of the car is necessary. When changing a car, only a valid policyholder is needed.
• The procedure for the selected option for re-registration of compulsory motor liability insurance takes place directly in the office in the standard manner for such an event. It is worth noting that in some cases the cost of the policy will be recalculated, for example, in a situation where the car included in the insurance has more power than the old one.

It is important to understand that some insurers may exclude such re-registration practices, so in such a situation it will not be possible. This aspect is clarified directly at the office of the insurance company and its presence will require the policyholder to take other measures.

New persons are added to the policy in a similar manner to that presented above. This practice is advisable in situations where a car with compulsory motor liability insurance issued for it is transferred for use to another person under a general power of attorney. In this case, the rights to the car also remain with the policyholder, but another person can use it.

Close relatives and spouses often resort to a general power of attorney. In any case, when using a vehicle in this way, it is important to include its actual owner at a given time in the MTPL policy in order to avoid any problems with authorized organizations.

When registering or adding a new person to the policy, its validity period remains unchanged.

How to receive compensation for compulsory motor liability insurance

The validity period of the compulsory motor liability insurance does not change when the owner changes

In situations where re-registration or adding a new person to the MTPL policy is not part of the car owner’s plans, you can simply return the insurance back and receive compensation for the remaining period of its validity. This type of action is not difficult to implement and consists of performing the following procedures:

• Collect basic documentation:

1. the MTPL policy itself;
2. policyholder's passport;
3. contract of sale.

Contact the insurer's office with a corresponding application. Get a quote. It is worth understanding that with the low cost of compulsory motor liability insurance and the short validity period of the policy for which you can receive compensation, it is not advisable to resort to this option, since the amount of the returned funds will not be significant, and the time spent and the same money on the trip to the insurer’s office cannot be returned .

It is possible to weigh the rationality of such an event if you calculate the compensation specifically for your case using the following formula: AMOUNT REFUND = (POLICY PRICE * REMAINING INSURANCE PERIOD IN DAYS) / 365 - 23% OF THE NUMBER OBTAINED BY DIVIDING

The 23% deduction is taken from various expenses of the insurance company for events related to the termination of insurance, so you should not be surprised by it.

In general, there are plenty of options for dealing with compulsory motor liability insurance when changing the owner of a car included in the insurance. Every motorist who has read the material presented above will be able to choose the most optimal one in such a situation. We hope today's article answered your questions. Good luck on the roads!

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How to reissue an MTPL policy to a new owner

Often, after selling a vehicle, the former owner is left with an incompletely used compulsory insurance contract. What to do with the MTPL policy if there is a lot of time left before it expires, is it possible to reissue the document or receive monetary compensation? Let's try to consider this issue in detail.

Is it possible to change the owner in the MTPL policy upon sale or in other cases?

It is quite possible to re-issue the document if the owner of the MTPL is not against the fact that the future owner will enjoy his rights and privileges. Before the new owner contacts his insurance company, an agreement is concluded between the parties, which specifies the amount of compensation for the time of non-use of insurance.

This requirement is quite legitimate, as it is confirmed in Art. 960 of the Civil Code of the Russian Federation - it states: “When transferring the right of ownership of a vehicle to the person for whom the MTPL agreement is drawn up, all obligations are assumed by the buyer.”

But with this method of re-registration, it is necessary to notify the insurer that the actual owner has changed. To protect its rights, the seller can enter the amount of the refund into the purchase and sale agreement.

It is easy to calculate the total amount; just divide the cost of the policy by the number of days in a year and multiply by the remaining period. But the amount of this remuneration must be legally confirmed.

If the buyer does not want to take advantage of the seller’s benefits, since, for example, according to his documents, the cost of the MTPL contract is much less due to bonuses, the former car owner will have to look for other ways to cancel the document.

Is it necessary to re-register compulsory motor liability insurance when the owner changes?

Everything depends on the agreement between the parties. In some cases, it is enough to simply enter the driver into the policy as an additional person who has the right to drive a car.

But in this case, you will have to draw up a general power of attorney, and not a purchase and sale agreement.

In all other situations, you will have to change the document by visiting the insurer's office.

When changing the owner of a car between relatives, is it necessary to re-register compulsory motor liability insurance?

If a car changes its owner under a general power of attorney, for example, a father registers it in the name of his son, who previously drove this vehicle legally, then nothing needs to be re-registered. If this person was not included in OSAGO, then amendments are simply made and an additional payment is made, if necessary.

Of course, in a situation with a general power of attorney, you can terminate the agreement, but you should understand that in this situation you should not count on the return of the unspent amount.

What are the possible ways: an overview of the methods; conditions when they are feasible; their pros and cons

After selling a personal vehicle, the policyholder can take the following steps in relation to compulsory motor liability insurance:

• terminate the agreement with the insurance company and return part of the money;
• re-register the document to the new owner.

The first option is applicable in case of selling a car. Some car enthusiasts sell their iron horse after 3-5 years of operation, so as not to waste money and time on putting the equipment in order, and buy a new vehicle.

A change is made to the MTPL policy if the car is passed from one family member to another.

In both cases, you will have to visit the office of the company with which the contract is concluded. It’s better to go straight to the head office - employees of not all branches have the authority to make amendments.

You cannot make changes yourself by hand - this can only be done by the policyholder by contacting the company in person. If for some reason he cannot do this, then a power of attorney is issued to another person - it must be notarized.

Re-register OSAGO for the new owner of the car

This simple procedure will not take much time if you approach the issue wisely.

Step-by-step instructions on how to re-register OSAGO for a new owner

To change the MTPL contract, the new owner will need to visit the insurer's office. This agreement can be terminated and reissued without the former owner of the car.

Required documents

• statement;
• a citizen’s passport or other document that, according to the law, can be used to confirm identity;
• vehicle registration certificate and registration certificate;
• technical inspection;
• driver's license of the new owner and persons who will be allowed to drive;
• if the previous owner’s compulsory motor liability insurance is reissued, then the original policy is required.

With these documents in the Investigative Committee, you should sign a new contract, pay and receive the auto license in your hands.

Procedure

The first step is to notify the insurer about the change of owner. Then he will go to the office with documents and re-issue compulsory motor liability insurance. If the procedure is carried out without terminating the contract, then both parties must be present in person.

Deadlines and costs

If we talk about the timing, the procedure will not take much time, everything will take place in the company’s office quite quickly, provided that a complete package of documents is available. On the same day, the car owner will have a new MTPL policy in his name.

The former owner of the car will not pay anything extra during this procedure, but the new owner may have to contribute some funds if he wants to leave the car license open or add several drivers.

Renew your MTPL for a new car, while keeping the policy with you

It is impossible to perform this manipulation yourself. When concluding a contract for a new car, not only the owner’s data is entered into the RSA database, but also the main parameters of the vehicle, which affect the amount of the remuneration. Therefore, it is impossible to transfer information from one document to another.

Return the insurance to the company and receive compensation

The list of documents for a refund is as follows:

1. Application for termination of the agreement.
2. Certificate from the traffic police about deregistration of the vehicle.
3. Document from the tax service.
4. Purchase and sale agreement and transfer deed.

The insurer will accept the documents, cancel the auto insurance contract and recalculate funds for the unused period.

If the document contained a clause that stipulated the legal relationship between the company and the car owner in the event of early termination of compulsory motor liability insurance, then the citizen may be charged 20% for damages.

Enter a new person into the “automobile registration” and give the policy to him for use (only possible if the car is transferred for use to another person under a general power of attorney)

The rules of MTPL insurance are categorical: the document can be terminated early if the vehicle has changed its owner, although it does not have to be terminated if you are ready to part with your money - funds for unused months of insurance will not be returned.

A general power of attorney is only the right to drive and dispose of a car, so it is not necessary to re-execute the agreement; it is enough to simply make amendments.

Changes to the vehicle license must be made within 10 days after receiving the general power of attorney. That is, for 10 days, the owner of the car, by proxy, can use compulsory motor liability insurance without amendments.

How to draw up a power of attorney

The general agreement gives a person a fairly wide range of rights, so it must be concluded strictly in a notary’s office with the presence of the car owner and an authorized representative.

Conclusion

If the owner of the car has changed, it is necessary to reissue a new OSAGO or make appropriate changes to the current one. In this case, the former owner can return the unused funds by contacting the insurer and terminating the contract.

OSAGO policy (insurance) when the owner of the car changes. Can I leave it or do I need to re-register?

A car was bought, a car was sold, how many such contractual relationships happen across the country every day.
This statistics is no more interesting for the average person than the study of Brownian motion in a certain volume of something. In fact, there is a fine line where general, uninteresting statistics become a private and important matter for each of us. It is here that private interest is formed, which is above all, but only for each of us individually. This is also the case when the seller and buyer of a car must agree on many aspects in order to achieve a common goal - concluding a purchase and sale agreement.
This includes inspecting the vehicle, checking documents and assessing material benefits and costs. Such costs and benefits include MTPL insurance, because it is a mandatory document that the driver must have with him when driving a vehicle. Sometimes bargaining comes to the point that the seller or buyer is already agreeing on who will get the insurance. The new owner or the previous owner decides to keep it for himself in order to receive compensation from the early termination of the MTPL agreement. In our article we will consider all possible cases of behavior when compulsory motor liability insurance is either terminated with the insurance company in order for the former owner to receive compensation, or is transferred to the new owner, after re-registration, for further management of the vehicle under it.

When the owner of the car changes, compulsory motor liability insurance remains with the previous owner

This option is the most likely and preferable.
The point is that it is logical! In fact, the insurance (MTPL) was a document of the previous owner, which means he must dispose of this document at his own discretion. Transferring a document without changing the owner, that is, without re-issuing compulsory motor liability insurance, will not lead to anything good. If the previous owner of the car retains the compulsory motor liability insurance policy, he can receive compensation for the unused period of insurance. This period will be calculated from the moment you write the application for termination of the “insurance” contract, that is, from the date when you come and write an application to the insurance company (clause 34, VI ​​“Early termination of the compulsory insurance contract”)

. The date of early termination of the compulsory insurance contract is the date the insurer receives a written application from the policyholder for early termination of the compulsory insurance contract.

Let's say that the right of the former owner of the car to receive compensation for the unused period of validity of the compulsory motor insurance policy is stipulated in the same document. The possibility of early termination is stated in the “Rules for compulsory civil liability insurance of vehicle owners” in paragraph VI “Early termination of a compulsory insurance contract”, paragraph 33.1 (b):

As a result, the previous owner can receive part of the funds spent on purchasing “insurance”.
We wrote in more detail about the refund procedure in the article “Refund of money for unused months of compulsory motor insurance when selling a car.” There you can also find information about the procedure, the order of paperwork and what percentage of the funds will be compensated to the former owner of the car. There is another scenario when the insurance is transferred to the new owner. In this case, its re-registration is required, more on this later.

When the owner of a car changes, compulsory motor liability insurance is transferred to the new owner for further management of the vehicle.

This option of further use of OSAGO with a new owner is not always possible.
Insurance companies prefer to work on the principle of new owner - new contract. In principle, there is something in this. In fact, they prefer the option that we discussed in the previous paragraph. However, if this is the case for you, you can try contacting the insurance company with a request to make changes to your insurance. In fact, this will not be the termination of the insurance, but the introduction of changes to it by the previous policyholder. So, if after purchasing a vehicle, that is, after a change of owner, the seller and the buyer agreed to transfer the MTPL policy to the new owner, then it is necessary to re-register it, since the MTPL document contains the column “Owner”. This is where changes need to be made. If this is not done, then the driver will not face anything for the first 10 days, since during this period you can drive completely without insurance, as you can learn from the article “How many days can you drive without compulsory motor insurance after buying a car.” But in the future, a driver with incorrectly issued insurance will be fined. About this in the article “Fine for driving without compulsory motor liability insurance.”

In this case, the policyholder, that is, the previous owner, must come to the insurance company and re-register and rewrite this line “Owner”, while also adding the new owner to the group of persons admitted to management. Changes to the insurance are allowed in accordance with clause 22 of the “Rules for compulsory civil liability insurance of vehicle owners”, paragraph IV “Validity period, procedure for concluding and amending a compulsory insurance contract”.

During the period of validity of the compulsory insurance contract, the policyholder is obliged to immediately notify the insurer in writing of changes in the information specified in the application for concluding a compulsory insurance contract.

If the insurance company agrees to change the data in the existing insurance contract, then on the basis of clause 23 of the “Rules for compulsory civil liability insurance of vehicle owners”, paragraph IV “Validity period, procedure for concluding and amending the compulsory insurance contract”, the policyholder may be required to pay additional insurance premiums, according to the increased degree of risk, based on the provided coefficients.
It turns out that the insurance will be issued on behalf of the previous owner - the policyholder, but the new owner - the driver - can also drive it. The disadvantage of such registration is that the former owner is involved in the preparation of documents that he does not need. Additional insurance payments may be required. And also the MTPL agreement will actually be concluded with the previous owner, that is, when paying the insurance premium, it is the previous owner who will have to represent the interests of the party involved in the event of an insured event. Let's say he or his representatives must be notified of an accident. In case of payment (insurance payment), the victim will receive compensation under the insurance of the culprit.

As you can see, this is also an important note for some, which means it is still better to abandon this option in favor of the previous case.

Question and answer on the topic “MTPL when changing the owner of a car”

Question: Is it possible to take the insurance of the former owner of the vehicle and drive on it if its validity has not yet expired?
Answer: No, since the insurance will not be considered valid due to incorrect information in it. There was a change of ownership, which is not reflected in the insurance.

Question: Is it possible to contact the insurance company and add the new owner to the insurance policy?
Answer: Yes, this can be done.

Question: Is it possible to simply transfer the insurance without restrictions to the new owner?
Answer: No, since the previous owner will be registered as the owner.

Video about compulsory motor liability insurance during a change of ownership

Now about the same thing, but in video material.

OSAGO when changing the owner of a vehicle: possible options

You can purchase a car in different ways: buy it, inherit it, or give it as a gift. In this case, the purchased car can be either new or already used. With a new vehicle (VV), everything is simple - it does not yet have its own history and documents for it are being drawn up for the first time. But new owners of used vehicles often have questions about how to properly use existing documents, including an insurance policy. Therefore, it is useful for the new owner of a vehicle to study how compulsory motor liability insurance is issued when the owner of the vehicle changes.

Features of using an MTPL policy when changing the owner of a car

In accordance with the Law “On Compulsory Motor Liability Insurance” dated April 25, 2002 No. 40-FZ (as amended on June 1, 2018), every Russian driver is required to take out motor third-party liability insurance.

Therefore, when checking on the road, traffic police officers require that the car owner present a compulsory motor liability insurance policy. The absence of this document is considered a violation of the law and is punishable by a fine.

However, there is an exception to this rule: for drivers who have a purchase and sale agreement in hand, the law provides for the possibility of operating a car without an insurance policy for 10 days after its purchase.

This period is given to the new car owner so that he has the opportunity to register it with the local traffic police.

So, in order to bring a vehicle from the place of purchase, you do not need MTPL. As for the next stage, namely registering the car for the new owner, here the question of whether insurance is needed to re-register the car is resolved differently.

Thus, in accordance with the procedure prescribed by law, registration of a vehicle with the traffic police is carried out only if there is an established package of documents, which includes an insurance policy.

If the driver does not have an MTPL policy, traffic police officers have the legal right to refuse to register the car.

This situation is very undesirable, since there is a penalty for driving a vehicle without registration - a fine of up to 2 thousand rubles.

In addition, all drivers who are planning to register a vehicle, but are unsure whether insurance is needed if there is a car purchase agreement, should know: a car purchase agreement does not replace an insurance policy.

In other words, having only a purchase and sale agreement in hand, but without taking out insurance, it will not be possible to register the car with the traffic police.

The requirement for mandatory compulsory motor liability insurance is valid not only when selling or buying a vehicle, but also in the case of inheritance or gift. It does not matter to whom the gift is given - a relative or a stranger. According to the rules, the first thing the new owner must do is conclude a car insurance contract.

Thus, the answer to the question of whether a compulsory motor liability insurance policy is needed when re-registering a car purchased into ownership is found in the law, which establishes that it is prohibited to drive on the territory of the Russian Federation without it.

Is it necessary to re-register OSAGO if the car passes to a new owner?

When selling a used vehicle, its previous owner must transfer to the new owner not only the car itself, but also the documents for it - the vehicle title and inspection card.

Insurance is not among the documents required to be transferred. The previous owner of the car can keep the policy or give it to the new owner along with the vehicle.

If the buyer does have insurance, then, as a rule, the question arises whether it is necessary to reissue the MTPL policy when the owner changes, and whether it is possible to drive with existing insurance before its expiration.

Let's consider this issue in more detail.

If the insurance policy is not terminated when purchasing a new vehicle, but is transferred to the new owner, then the car is actually insured.

If the vehicle is insured, it means that if an insured event occurs, the company is obliged to make a payment in accordance with the contract. It would seem that in such a situation the new owner has nothing to fear, and there is no need to make any additions to the policy.

However, paragraph 22 of the “Rules for Compulsory Civil Liability Insurance of Vehicle Owners” dated September 19, 2014 No. 431-P establishes that the buyer of a car has the right to drive with a valid policy only after he signs it over in his name.

In addition, those who doubt whether they need to change their insurance when re-registering a car should take into account an important nuance: the personal data of the person in whose name the vehicle is registered and the full name of the person included in the insurance contract must match. Otherwise, the traffic police will not register the vehicle.

There is another reason why the new owner should reissue the policy to himself. When an insured event occurs, the owner specified in the policy receives the payment under compulsory motor liability insurance. If the new owner has not made changes to the contract, he will not receive insurance payment.

The owner does not have to enter into an insurance contract personally. The owner of a vehicle does not always drive it himself. The owner of the car and the driver, that is, the citizen who actually drives it, may be different persons.

Therefore, both the car owner and the driver can take out an MTPL policy. The main thing is that all persons admitted to management are included in the policy.

So, we found out that the question of whether it is possible to re-register compulsory motor liability insurance for a new owner has a positive answer, which is supported by law.

The procedure for reissuing an MTPL policy to a new owner

The procedure for issuing an MTPL policy for a new owner has some features, and it is important to know them in order not to have problems with insurance in the future.

First of all, keep in mind that the renewal of compulsory motor liability insurance when selling a car is carried out with the participation of the previous owner, since only the policyholder can make changes to the document.

When transferring the vehicle to the buyer, the insurance owner enters his data in the “Owner” column, as well as the data of other persons who can drive the car.

Thus, both the new owner of the car and the previous one will have to appear in person at the insurance company. To enter new data into the insurance contract, you must provide the following documents:

• personal passport of the new owner;
• personal passport of the policyholder:
• contract of sale.

An application for amendments to the policy must be attached to the listed documents.

When taking out insurance for a car during a purchase or sale, it is important to remember that it is the transaction agreement, under which one person transfers ownership of the vehicle to another person, that is, the purchase and sale agreement, that is the basis for a change of owner in the current insurance policy.

In addition, the purchase and sale agreement is also important in the case when the previous owner immediately after selling the old vehicle buys a new one. The fact is that in this situation it is possible to reissue it to a new vehicle for the entire remaining period of validity of the policy. To do this, you need to provide the insurance company with documents for the new car, as well as a contract for the sale of the old one.

This provides for a recalculation of the cost of the policy, but, in accordance with the rules on how to reissue MTPL insurance when buying a new car, only if it has a more powerful engine than the one sold.

An additional payment for renewal of insurance is also possible if the car is registered in another locality after purchase.

If the buyer is registered in a region with a higher base rate, the insurance company will recalculate and charge an additional fee. If the previous and new owner of the car are registered in the same region, then the cost of the policy does not change.

When taking out insurance for a purchased vehicle, you should also take into account such a nuance as the availability of a diagnostic card. It is known that, according to the new provisions of the law on compulsory motor liability insurance, since 2016, for cars less than three years old, technical inspection has been canceled. However, when it comes to reissuing an MTPL policy to a new owner, the law here establishes mandatory maintenance.

What is more profitable: termination or re-issuance of an insurance contract?

When concluding a purchase and sale agreement, the former and new owner of the vehicle need to agree on what to do with the existing insurance: transfer it to the buyer or terminate it.

Of course, it is more profitable to use a less expensive and faster method. To make the right choice, just compare the following indicators:

1. Cost of the procedure.
   Documentation of a change of owner without terminating the MTPL agreement, depending on the company’s tariffs, costs the car owner an average of 650–700 rubles. At the same time, when terminating an insurance contract, many companies require 20–23% of its unused value for their services.
   Such a requirement is illegal, so you can try to argue with insurers. However, most likely, the driver’s protests will not change the situation. An important nuance: upon termination of the contract, the previous owner is guaranteed to receive the unused insurance premium, since it is paid by the company, and when reissuing the policy, this amount must be paid by the buyer of the car, and here there are guarantees only if the agreement to pay the specified amount is certified by a notary.
2. Duration of the procedure. Here the indicators are practically the same. Both termination of the contract and re-registration of compulsory motor liability insurance for the new owner are carried out almost immediately after the provision of the necessary documents.

By comparing the indicators, the driver can independently determine what is best to do with the current compulsory motor liability insurance when purchasing a used vehicle.

Special cases of re-issuance of an MTPL policy

Sometimes, when taking out insurance for a new owner, atypical situations arise that require special clarification. For example:

Case 1. How to re-issue compulsory motor liability insurance if the new owner is a relative of the previous owner of the car

As a rule, a car purchase and sale agreement is concluded between persons who are not related. However, sometimes a car becomes the property of one family member to another as a gift or under a purchase and sale agreement, and the new owner has a question about whether new insurance is needed when the owner of the car changes in this case. To resolve this issue, you should pay attention to the contents of the insurance contract. It contains a column in which persons authorized to operate the machine are entered. If this section already contains the data of the new owner, then no changes will be required. He is the owner of the vehicle in accordance with the vehicle registration certificate.

Case 2. How is the re-registration of compulsory motor liability insurance carried out when the owner of a leased car changes?

In this case, one should proceed from the characteristics of this method of ownership. Leasing is a cross between a loan and rent with the right to purchase. It is important to know here that the individual or legal entity that leased the car is not its owner. Therefore, if the owner of the MTPL lease has changed, this does not affect the driver in any way. Renewal of insurance and entering into it information about persons allowed to drive is the responsibility of the owner.

How to get money back for a policy if the car is sold

It is quite common for the owner to sell the vehicle before the policy expires. For example, insurance is issued in June, and already in November the car has a new owner.

It is quite natural that the previous owner wants to return the unused amount of insurance.

To terminate compulsory motor liability insurance, you must contact the office of the insurance company where the contract was concluded and provide the following documents:

• personal passport of the policyholder;
• contract of sale;
• Bank details of the previous owner of the car.

In addition, the policyholder must fill out an application for the return of the unused portion of the insurance premium.

The amount to be refunded is calculated as follows: the number of unused days is multiplied by the cost of insurance for one day. 23% is deducted from the amount received - this is the percentage the company takes for the procedure.

After 14 days after filing the application, the insurer is obliged to return the money to the policyholder under the MTPL agreement.

A copy of the termination application, certified by the signature of an employee of the insurance company, must be kept by the policyholder. If the money is not returned on time, it will be useful when going to court.

A car enthusiast with over 20 years of driving experience. Higher technical education. Experienced copywriter, specializing in banking and technical topics.