Is it possible to change the insurance to the new owner?

Renewal of MTPL insurance for the new owner

Selling a new car is not uncommon now, but vehicle owners often have questions related to car insurance. This material describes how to re-register compulsory motor liability insurance for a new owner, and also highlights all other related issues.

In what cases is insurance transferred to another driver?

To answer the question of whether it is necessary to change insurance when there is a change of owner, first of all, it is necessary to take into account that obtaining auto insurance is a mandatory condition for any driver, in accordance with the requirements of paragraph 1 of Article 4 of Federal Law No. 40.

Thus, the civil liability of the owner of the vehicle is insured, i.e. registration is not made for the car, but specifically for the person driving it.

If it is assumed that not only its owner, but also other citizens may be driving a car, then they must be included in the compulsory motor liability insurance policy, or an unlimited policy can be purchased. In this case, any person with a driver's license may be allowed to drive.

When selling a car, if its previous owner had a compulsory motor liability insurance issued for a year, he needs to come to the representative office of the insurance company to note the change of owner in the compulsory motor liability insurance.

In this situation, the buyer is required to purchase a new policy or reissue an old one due to a change in the owner of the vehicle.

Methods for re-issuing an insurance policy

The transfer of ownership of a car can occur through a document of purchase and sale, or by a general power of attorney. This is also related to differences in the methods of reissuing a policy. They may be as follows:

the previous owner includes the buyer in the car insurance and gives him this document;
the seller breaks the contract with the insurance company, and compensation for the unused period is returned to him;
the current policy is reissued to another citizen or car.

Thus, the answer to the question: “Is it possible to drive under the old owner’s insurance?” This is allowed if the policy is transferred to a new owner who is included in this car insurance.

A situation often arises when the person selling the car plans to subsequently purchase a new car, so there is no point in terminating the existing insurance, but only needs to change it.

It’s the same with the buyer: if you have a motor vehicle license, you only need to enter the changed information into the unified register of the RSA.

The registration procedure must take into account all available nuances and be adopted by mutual agreement of the parties.

If a general power of attorney is executed and the seller agrees to the buyer using the current insurance, the new driver can simply be included in it. To do this, you need to visit the insurance company. In this situation, do not forget about the need to conclude an additional agreement on compensation on the part of the new owner for the unused insurance period.

Its value is easy to calculate:

the cost of one day is determined by dividing the annual amount by the number of days in the year;
the result is multiplied by the number of remaining days.

It is worth considering that this option is only possible if there is no change in the region of registration of the car, because there may be differences in the cost of compulsory motor insurance.

Important! Re-registration by including another driver in the car insurance with the return of compensation from him for the unused time of the insurance contract is possible only when selling a car within the same region.

As for the termination of a motor vehicle license. If the new owner refuses to pay compensation, it can be reimbursed by the insurance company after the auto insurance contract is terminated. In accordance with paragraph 4 of Art. 10 Federal Law No. 40, the insurer is obliged to compensate for unused policy time.

In this case, it is necessary to submit a contract for the sale of a car to the insurance company before the end of the day of its conclusion in order to record this event.

But you need to take into account that the insurer in such a situation will withhold a twenty percent penalty. In this regard, if you plan to continue driving another car, drawing up a new contract or re-registering the old one is much preferable from an economic point of view.

Attention! When returning compensation for unused time in a car insurance policy, the insurance company may withhold a twenty percent penalty.

Documents required for renewal of compulsory motor liability insurance

To change the car title, the new owner will need to visit the insurer's representative office. This insurance can be renewed without the previous owner of the car. You will need the presence of documents that are also needed in the case of the initial registration of the policy:

statements in the prescribed form;
passport or other identity document;
for a legal entity – registration documents of the organization;
certificate of registration of the car, technical passport of the car;
a document confirming the completion of a technical inspection;
driver's license of the owner and citizens allowed to drive by the new owner;
previous policy, if the previous owner’s compulsory motor liability insurance is reissued, it must also be presented.

With the above documentation, you must contact the insurance company, sign and pay for a new vehicle license. Having completed such registration, the insurer issues the following documents:

original auto insurance contract, certified by the signatures of the parties;
insurance rules;
reminders about behavior in the event of a traffic accident;
receipt confirming payment.

As follows from the material presented, re-registration of a car title when the owner of a car changes is a relatively simple procedure that does not require large time and material costs, but bureaucratic delays are possible, especially if you are dealing with a large insurance company.

But do not forget that car insurance must be renewed in any of the listed ways, depending on the form of sale of the car.

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.

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:

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.
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.

How to properly re-register compulsory motor liability insurance for the new owner: instructions

After purchasing a car, the driver undertakes to take out a compulsory motor liability insurance policy as soon as possible. It is not possible to use the previous owner’s insurance, because the auto insurance policy does not protect the vehicle, but the liability of a specific person. Accordingly, it is valid only in the hands of the policyholder. You will find out further how to re-register compulsory motor liability insurance for the new owner and whether there is such an opportunity.

Is it even possible to re-register OSAGO for a new owner?

When concluding a transaction, be it a gift, purchase or sale, or transfer of a car by proxy, the alienator relieves himself of liability to the victim in the event of an insured event. As soon as the vehicle is transferred to the new owner, the MTPL agreement is no longer valid. Motor vehicle liability is assigned to the new owner, therefore, the policy must be reissued within 10 days.

Is it possible to re-issue MTPL for a car if the owner has changed? Among the possible options, there is one such as re-registration of the MTPL agreement from the old owner to the new one. By the way, insurers are much more willing to take this step, which cannot be said about the payment of compensation for early termination of the contract, which is provided for in Art. 10 clause 4 of the Law “On Compulsory Motor Liability Insurance”.

In what situations is it necessary to re-register compulsory motor liability insurance for the new owner of the car?

The new owner of the car will need MTPL insurance, which includes his name. It goes without saying that the old owner is not obliged to reissue the policy to another owner. However, the vehicle license will have to be redone in the following cases:

alienation of a car under a contract of sale, gift, exchange, etc.;
transfer of the vehicle under a general power of attorney.

There are several options for purchasing an MTPL agreement if the owner of the car has changed, namely:

registration of a new MTPL policy after purchasing (receiving as a gift) a car;
adding the name of the new owner to the current policy;
re-registration of a car title to a new owner in order to use the remaining insurance period.

Good to know! Which of the above paths to take is decided by both parties, both the alienator and the acquirer. If contact between them is not established, and there is no possibility of reaching an agreement, then the newly minted owner remains to draw up a new contract. Not a single regulatory act regulates the procedure for re-issuing an MTPL agreement when selling a car, so the old owner is not obliged to meet halfway in this matter.

As for the previous owner, he, in turn, can also go in several ways:

re-registration of the MTPL contract for another car - the policyholder can use the remaining insurance period by transferring it to another vehicle belonging to him. Rewriting OSAGO for another car is a convenient way if there is a double transaction when a motorist purchases a new car immediately after selling the old one;
termination of the contract with the insurer ahead of schedule and receipt of the unused portion of the insurance premium. This makes sense if the motorist does not intend to buy another vehicle in the near future or is planning a move, after which it is not possible to maintain contractual relations with this insurer;
entering information about the new owner into the insurance. This is practiced when transferring a vehicle under a general power of attorney, without drawing up a civil law contract.

The issue of renewing insurance for the new owner is discussed in advance. It is discussed at the request of the parties: either orally or documented. In this case, the decision remains between the old owner and the new owner of the car - the details of the re-registration can be covered in a separate clause in the property agreement (deed of sale, deed of gift, exchange) or stipulated in a separate written agreement concluded between the parties and certified by a notary (which is not a mandatory condition) .

In what cases will the insurance company refuse?

All legislative acts relating to compulsory insurance provide an explanation of the procedure for early termination of compulsory motor liability insurance, but they do not say a word about re-registration. This gives the insurer the right to act at its own discretion, so refusal to renew the insurance contract to another person is also possible.

However, insurance companies understand that in this matter it is better to meet the policyholder halfway for at least the following two reasons:

a new car owner is a potential client who is less likely to want to buy compulsory motor insurance where he was refused to renew the contract. Consequently, the company loses the new owner of the vehicle as a client;
if the insurer refuses, the old owner will most likely want to collect the remainder of the insurance premium for the unused period, which is completely legal and completely unprofitable for the insurer, and it will not be possible to refuse this either.

Therefore, large and rated insurance companies almost always willingly agree to reissue an existing contract, since they understand that this is the most, if not profitable, then the optimal scenario for the development of events. Refusal may come from small firms citing the individual characteristics of running an insurance business that do not allow doing otherwise.

However, sometimes the refusal is quite justified. For example:

the insurance history of the new owner leaves much to be desired - the coefficients are too high, so the insurance company does not agree to re-register;
the previous owner caused the accident during the current insurance period. In this case, the insurer almost always refuses to re-register.

In case of refusal, the old owner has no choice but to terminate the contract and receive payment for unused insurance, and the new owner must enter into a new contract with the selected insurance company.

Step-by-step instructions for re-registration

The procedure for reissuing a policy is the same, however, in each case there are features that depend on which path the alienator and the acquirer choose.

Step one

Preliminary resolution of financial issues. The old owner paid for the entire insurance period, so it is quite natural that he wants to get his money back. If the previous owner wants compensation for unused insurance, and the potential buyer agrees to its terms, he has several options:

include this amount in the cost of the car;
receive it from the new owner upon re-registration.

Often, compared to the amount received from the sale of a car, this figure does not seem significant, and this issue is simply not raised.

Step two

Preparation for re-registration of compulsory motor liability insurance at the conclusion of the transaction. The issue of re-issuing an insurance contract must be discussed at this stage. If the car is transferred under a general power of attorney, the new owner can be included in the policy, but if it is a deed of sale, this option will not work - you will have to issue a duplicate policy for the new person.

These points are discussed orally, or recorded on paper if both parties are interested in this. The issue of re-registration of compulsory motor liability insurance can be considered as a separate clause of the property agreement, or a separate document can be drawn up, where the subject of the agreement will be the motor vehicle title.

Step three

Collection of documents. The seller will need a policy and an application for renewal. The buyer must provide a complete package of documents:

passport;
property agreement;
PTS with the latest information;
driver's licenses of the new owner and all authorized persons.

If we are talking about a legal entity, then you will need to provide a full package of statutory and registration documents to the company to which the car was transferred.

Step four

Visit to SK. The seller and buyer must visit the insurance company together. If the new owner cannot come to the office in person, he can transfer all the listed documents through the previous owner, whose presence is required. This is a common practice when a deal is concluded between good friends.

The final stage of re-registration. At the end of the procedure, the new owner receives a duplicate of the insurance policy. The old one must be destroyed. In addition, he is given a copy of the receipt for payment of the insurance premium, two copies of the European protocol and the insurance rules.

Features of recalculation during re-registration

Unfortunately, the specifics of calculating the insurance premium in this case, as well as the re-registration procedure itself, are not covered in any regulatory act. Therefore, insurers act at their own discretion and recalculate only upward. So the new owner:

or pays the missing amount if his insurance history is worse than that of the former owner;
or does not take any steps, even if his history is better than that of the alienator.

On a note! Insurers are always reluctant to part with an insurance premium, even considering that the procedure for early termination of a contract is regulated by law. Therefore, in matters of recalculating insurance downwards during re-registration, they are, as a rule, unshakable.

Important Tips

it is impossible to resolve the issue of re-registration remotely - it is best to visit the main office and rewrite the policy to the new owner there;
if the old owner wants to renew the contract for a new one and at the same time receive compensation for unused insurance, then the best option would be to include this amount in the cost of the car and not discuss this issue separately;
the insurance company must be notified within three days of receiving new license plates after re-registration of insurance;
A duplicate policy is usually issued free of charge, but some insurers insist on additional payment - on average 400-600 rubles.

Conclusion

It is quite possible to reissue a compulsory motor liability insurance policy to a new owner, and most insurance companies are cooperative in this matter. This is agreed upon in advance orally or in writing. The old owner can either add the new owner to the current contract or assist him in obtaining a policy for the remaining insurance period.

You will learn more about how compulsory motor liability insurance is issued when purchasing a used car below.

We look forward to your questions and remind you that you can sign up for a free consultation with a car lawyer using the special form below.

Re-registration of compulsory motor liability insurance when the owner of a car changes

Selling a car is a common thing. The decision to part with his iron horse can be implemented by the owner at any time. And very often it does not coincide with the expiration period of the MTPL policy. Considering that it can be expensive, few car enthusiasts are able to simply throw it in the trash.

In order not to lose money previously paid, it is important to know what to do with compulsory motor liability insurance when changing ownership.

Is it possible to re-register OSAGO for a new owner?

After selling the car, the previous owner may still have insurance with an impressive period of validity. And the new owner will have to register it again, since according to the law he has no right to drive without a document. In such a situation, the interests of the seller and buyer coincide, so the most logical solution is to reissue insurance to the new owner of the car. When changing the information in the document from the seller to the buyer of the car, the seller must be aware that the policyholder and the owner of the vehicle may be different persons.

If only the name of the owner is changed in the data, leaving the policyholder the same, then in the event of a traffic accident he will have to take a direct part in processing the insurance payment. Car owners use this option in cases where they sell a car to a relative, while continuing to use it. If a stranger becomes the buyer, it is better to change not only the name of the owner, but also the insured.

How to change the policyholder in the policy

The procedure for changing the policyholder is identical to that used when entering buyer data. The difference is that the application should state a request to change both the owner of the car and the insured under a previously concluded contract.

To be fair, it is worth saying that it is not always possible to change the policyholder in the policy. Some companies prefer to adhere to the principle: new policyholder - new contract.

Renewal of the policy for another car

Often the sale of one car is associated with the simultaneous purchase of another. At the same time, a natural question arises for the motorist: is it possible to reissue a valid MTPL policy for another car? It is possible to do this. But it is important to take into account that such re-registration can only be carried out for the remaining period of its validity.

To change the data, the owner of a new car needs to come to the office of his insurer, write a corresponding application and present documents for the new car. In this case, recalculation of the cost may be required provided that the power of the purchased vehicle differs from that previously stated.

Termination of an agreement

Another common way to resolve the problem of unused insurance is to terminate the contract. In this case, the seller will receive financial compensation from the insurer for the entire unused period of its validity.

However, you need to be prepared for the fact that the amount will be less than what was paid. RSA and the insurance company will take their share.

The amount of refunded funds can be calculated using the formula:

St = Sp * K / 365 – 23% ,

St – refund amount;
Sp – policy cost;
K – number of unused days.

If, after selling the car, the seller decides to return the money for unused insurance, he should contact the company’s office as soon as possible with a corresponding application, since it is from the date of the application that the refundable part of the insurance premium will be calculated.

Recalculation of insurance premium

Despite the fact that the car remains the same, the cost of the policy will be recalculated by the insurer based on the buyer's data. As a result, it may be either higher or lower than the original one. But you shouldn't hope for a refund. In case of re-registration, the calculation is usually made only upward. In this case, the new price will depend on the value of the coefficients determined based on the buyer’s indicators:

age;
length of service;
driving quality, characterized by the bonus-malus coefficient;
region of permanent registration.

In addition, the buyer’s desire to include third parties in the insurance who have received the right to drive the car will also affect the cost.

In this case, the calculation will be adjusted taking into account the performance of the youngest, inexperienced or careless driver included in the document.

If the cost of the policy turns out to be higher than the original one, the buyer will need to pay an additional amount specified by the manager through the company's cash desk.

Re-registration procedure

The re-registration will be carried out by the person on whose behalf the contract was concluded. To do this, he should perform the following steps:

Drive to the office of the insurance company.
Bring with you a set of documents including:
- a copy of the driver's license and passport of the new owner;
- passport of the previous owner;
- contract of sale;
- a valid MTPL policy;
- copy of PTS;
Write an application to change the owner and insurer of the car.

The application form can be obtained directly from the insurer's office. If the seller’s representative is preparing the documents, a power of attorney certified by a notary should be attached to the set of documents. If only the new owner of the car is included in the insurance, one seller can handle the re-registration, provided that he has a set of necessary documents on hand. If both the owner and the policyholder are replaced, both the seller and the buyer must come to the company’s office.

Based on the submitted papers, the cost of insurance will be recalculated. At the end of the procedure, the car buyer will receive a duplicate policy reflecting all the changes made. In this case, the old document will be confiscated and destroyed by an employee of the insurance company.

When selling your car, the owner should think not only about the cost of the transaction, but also about how to deal correctly and profitably with the compulsory motor liability insurance policy in force at the time of sale. Reflecting on this topic, he should evaluate not only the time and financial costs of re-registration or termination of the contract, but also the possible consequences of the participation of the sold car in an accident.