Is it possible to return CASCO when selling a car?

I want to cancel CASCO insurance

Any owner of a CASCO policy may have an urgent need to terminate the current contract. But in order to easily and painlessly part with the insurance company, you will need knowledge of the features and nuances regarding the early termination procedure:

• Who has the right to terminate CASCO insurance and in what cases?
• When is the best time to do this?
• Will money be returned for the unused period of insurance?

We will talk about these and other nuances in this article.

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Client - at any time, insurance company - under certain conditions

1. The policyholder (or beneficiary) has the right to write a statement to terminate the CASCO contract at any time , and the insurance company is obliged to agree with his decision (Article 958 of the Civil Code of the Russian Federation). Another question is, will it be possible to return money for the unused insurance period? Answer: not always, but more on that below.
2. For an insurance company, such freedom is unacceptable. Termination of a contract unilaterally, without the personal consent of the car owner, for any reason, is absolutely illegal (Chapter 48 of the Civil Code of the Russian Federation). For example, it happens that the insurer, relying on its own insurance rules, notifies the client in writing that it is terminating the contract with him on the basis of non-payment of the next installment. Such an action can be easily challenged even during pre-trial proceedings. The insurance company has the right to terminate CASCO only due to a significant violation of the terms of the contract by the client, and only after an appropriate court decision . For example, an increase in insurance risk gives the insurer the right to demand additional payment for a CASCO policy (Article 959 of the Civil Code of the Russian Federation). If the car owner refuses to pay extra, the court will side with the insurer and the contract will be terminated. Circumstances leading to an increase in the degree of insurance risk are always specified in the insurance rules. Usually this is: the lack of the required alarm system, allowing an inexperienced driver to drive, storing the car near the house instead of the garage, and so on.
3. And one last thing. According to Art. 958 of the Civil Code of the Russian Federation, the CASCO insurance contract automatically terminates if the insured car is destroyed for reasons that, according to the CASCO rules, are not an insured event. For example, this could be a vehicle fire due to an electrical fault, death as a result of intentional actions of the policyholder (beneficiary), etc.

Will the money be returned? Read the rules!

In case of early termination of the CASCO agreement due to the circumstances specified in paragraph 3 of the previous section of the article, the insurer is obliged to return to the car owner part of the insurance premium paid by him in proportion to the time during which the policy was valid. And you need to know that in this case:

• The calculation is made on a daily basis.
• Any deductions (expenses of business management (RVD), payments made earlier are illegal.

Early termination of the contract at the personal request of the policyholder (clause 1) does not always entail a refund of money. The same Article 958 of the Civil Code of the Russian Federation states that “ in case of early cancellation of an insurance contract, the insurance premium paid to the insurer is not refundable, unless otherwise provided by the contract .” Let's decipher it.

Suppose a car owner wanted to terminate the CASCO contract of his own free will, no matter for what reason: he repaid the loan, sold the car, did not like the insurance company, etc. In other words, there is an insured vehicle, and the likelihood that an insured event will occur to it has not disappeared. In this case, the insurance company makes a decision: return the money for the unused CASCO period in full, return it with certain deductions, or return nothing at all. That is, of course, the insurer does not decide anything suddenly, but is guided by its CASCO insurance rules and the terms of the contract.

The rules of any insurer always have a section dedicated to the issue under discussion, entitled, for example: “Termination (or termination) of the insurance contract . It explains in detail in which cases the company will issue a refund and how the refund amount will be calculated. If it states that “at a certain point in time” the insurance premium is not refundable, then the owner in these cases will definitely not receive anything. And this will not contradict the Civil Code.

SUMMARY : carefully read the CASCO insurance rules! And if, before purchasing the policy, you did not familiarize yourself with them regarding the early termination of the contract, do so at least before writing a notice of termination. Insurers, as usual, relying on the client’s insurance “illiteracy” and laziness, may try to evade returning money under a flimsy pretext and contrary to their own provisions. This is the time to show your competence.

If the rules say that money is returned under certain conditions, for example, minus previously paid insurance compensation and/or costs of conducting the case (RVD), then this is also the legal right of the insurer.

Moreover, deductions are made first, and then the proportion is calculated by day. And we must keep in mind that deductions of previously made payments and RVD are provided for by the rules of almost all insurance companies. That is, if the cost of CASCO is 30,000 rubles, and during the validity of the policy the same 30,000 rubles were paid for the insured event, it is obvious that if the contract is terminated early, the car owner is guaranteed to receive nothing. RVD varies among all insurers and usually ranges from 10% to 40% of the premium amount under the policy.

That is, similar to the coefficients in the CASCO calculator, each company has its own formula for calculating the amount of return for the remaining insurance period.

Termination of CASCO when selling a car

• As already mentioned, if the policyholder terminates CASCO when selling a car, part of the insurance premium for the policy can only be received if this is provided for by the terms of insurance. But even if a refund is possible, the amount will most likely be significantly reduced by RVD deductions. Therefore, the most win-win option to return money for CASCO when selling a car is to sell it along with a car insurance policy. If, of course, the new owner agrees. In this case, according to Art. 960 of the Civil Code of the Russian Federation, all rights and obligations under the contract will pass to the new owner, and he will calmly use the insurance. The main thing is to immediately notify the company about the new insured owner by writing a corresponding application and renewing the contract.
• If the car buyer refuses to pay extra for CASCO, it must be borne in mind that the date of termination of the CASCO agreement is considered the moment the application is written, and not the date of sale of the vehicle. Therefore, it is not profitable to delay visiting the insurance company’s office.
• If, after selling a car, the policyholder buys a new car and plans to insure it under CASCO with the same company, a good and enterprising insurer will definitely offer to credit the remaining funds to pay for the new policy. Moreover, most likely, he will not even hold back RVD.

We minimize losses

Unfortunately, it is possible to minimize losses upon termination of a CASCO policy only through preventive measures. Namely: even before signing the contract, study the rules for early “severance of relations” with the insurance company. And if there is at least one reason to assume that within a year it may come to selling the car, then:

1. Select only the insurance company that provides a refund for CASCO when selling a vehicle.
2. Conclude an agreement on the terms of paying for insurance in installments (CASCO in installments).

Subject to the above, the ideal moment for terminating CASCO insurance will be the date of making the next contribution. Then no one will owe anyone anything.

How can I get my money back for insurance if I no longer need it?

Often, car owners are faced with the fact that they no longer need MTPL and/or CASCO insurance for various reasons, and the policy will not expire soon. For example, there are still six months until the end of the policy, and you decide to sell the car. What to do? Is it possible to return part of the money back and terminate the insurance contract early?

Early termination of OSAGO.

In what cases can you return part of the money for compulsory motor liability insurance?

Conditions under which the Policyholder has the right to terminate the MTPL agreement early and receive money back for the remaining insurance period:

1. The Insurer's license was revoked.

As practice shows, after the Insurer’s license is revoked, you won’t have to wait long for news about declaring it bankrupt. In this case, it is quite difficult to return the money, sometimes even impossible. On the other hand, if the desire to return the money is explained only by the fact that the license was revoked, then you should not be too upset - you can drive with such insurance and, most importantly, in the event of an accident through your fault, payments will be made by the RSA (Russian Union of Auto Insurers). The main thing is that the Insurer’s license is revoked after you have concluded the contract.

2. The owner of the vehicle has changed.

What to do with the MTPL policy when selling a car? Can the new owner drive with the old insurance? No, he can not. The previous owner is indicated in the MTPL policy, which means that the contract is no longer valid. The new owner must conclude a new MTPL agreement and leave the old one to you. You have a choice: throw out the policy or return the money for the unspent portion of the insurance premium. To do this, you will need the passport of the previous owner of the car, the original OSAGO, a receipt for payment of the policy, a vehicle purchase and sale agreement and a copy of the title with information about the new owner.

In the event of a vehicle sale, it is important not to delay in contacting the insurance company for a refund of the unspent part of the insurance premium, because the calculation will be made not from the moment the vehicle is sold, but from the moment the corresponding application is submitted to the Insurer. "Time is money".

3. Complete structural destruction of the vehicle (cannot be restored).

The car was severely damaged in the accident and was deemed beyond repair, or the vehicle was scrapped under a government program. In this case, in addition to the compulsory motor liability insurance and payment receipt, we provide the Insurer with a disposal certificate.

4. Death of the owner of the vehicle.

The insurer is provided with an MTPL policy, a payment receipt and a copy of the death certificate.

How much money can be returned upon termination of the MTPL agreement?

To independently calculate how much money the insurance company should return to you, use a simple formula:

In case of early termination of the MTPL contract, the insurance company will not return 20% of the cost of the policy.

Many car owners mistakenly believe that if payments were made under the MTPL policy, then they will not be able to get the money back. In reality, when terminating the MTPL contract, the loss under the policy is not taken into account, i.e. the standard formula applies.

Who can receive money upon termination of compulsory motor liability insurance?

According to the rules of MTPL insurance, the following persons have the right to receive money upon early termination of MTPL:

1. Owner of the vehicle;

2. Policyholder. To do this, he will need a notarized power of attorney from the owner, according to which he has the right to receive funds from the insurance company;

3. Heirs of the deceased policyholder.

How long does it take for the insurance company to return money upon termination of compulsory motor liability insurance?

Usually, there are no problems with returning money upon early termination of compulsory motor liability insurance. Many companies are ready to return funds immediately after submitting documents, i.e. cash at the cash register. If this is not practiced by the insurance company, then you will be asked to provide the account number to which the Insurer will have to transfer the required amount within 14 calendar days.

If the deadline has passed and the money has not been received into your bank account, you should ask representatives of the insurance company at what stage the delay occurred. Often delays are due to technical failures or the negligence of individual employees. If your appeal did not affect the result, and the person is completely indifferent on the part of the insurance company, you can file a lawsuit. To do this, you will need a copy of the MTPL policy, a receipt and an application for the return of the unspent portion of the insurance premium.

Is it always worth terminating an MTPL agreement?

When terminating the MTPL contract, you should remember that if you drive without an accident under this policy, your BMR (bonus-malus coefficient that encourages accident-free drivers) will remain the same, i.e. The discount will not be increased, because the contract was valid for less than a year. And this in turn means that it is not always worth terminating the contract. In cases where the policy period is coming to an end soon, it may be more profitable to leave everything as is and receive a large discount for the next insurance period instead of an insignificant amount.

Early termination of CASCO insurance.

Unlike compulsory civil liability insurance, you can terminate the CASCO contract and withdraw the unspent part of the insurance premium without giving any reason. Only if the rules for compulsory motor liability insurance are the same for all insurance companies, then the procedure and conditions for terminating a CASCO agreement in different companies have their own characteristics. The procedure must be described in the insurance rules. Therefore, if at the time of registration of a CASCO policy you assume that you may have to terminate the contract after some time, pay special attention to the corresponding section of the insurance rules.

It is noteworthy that when selling a car before the expiration of the CASCO insurance policy, you have two options: return the money for the remaining period and terminate the contract, or reissue the existing policy to the new owner.

In what cases will a CASCO refund not be made?

There are several conditions, if one of which is met, a refund under the CASCO agreement will not be provided:

1. The contract was terminated early due to theft or loss (total constructive loss) of the vehicle, the insurance company made a compensation payment in full.

2. If payment of the insurance premium under the contract was made in installments, and the next installment has not been paid.

3. If it is established that when concluding the CASCO agreement, the policyholder provided false information.

How much money can be returned if CASCO is terminated early?

Again, because CASCO rules of insurance companies are not identical; there is no single formula for calculating the part of the insurance premium to be returned to the client in case of early termination of the contract. Usually the calculation method is the same as for the termination of compulsory motor liability insurance. Only in most cases, not 23% is withheld for the fact of termination, but 25-40%.

How to get money back for CASCO when selling a car

In 2002, a law on compulsory insurance was adopted. Today, drivers can apply for MTPL, CASCO, and DSAGO. If an insured event occurs, the owner of the insured car will be able to receive compensation.

Despite the prevalence of insurance among the modern population, not all motorists are familiar with the rules in force in this area. Many car owners, for example, do not know whether it is possible to terminate the CASCO agreement and return the money if the car is sold. This issue needs to be looked into.

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Legislative regulation

In the case of selling a car with a CASCO agreement , most sellers prefer to sell the car along with the policy itself, increasing the cost of the car.

In this case, the contract is reissued to the new owner of the vehicle, who will bear subsequent obligations under it.

However, the contract can be broken. Thus, Article 958 of the Civil Code contains an indication that the policy can be canceled ahead of schedule (the CASCO validity period is one year) if circumstances related to the liquidation of insurance risks come into force.

The sale of a vehicle can also be classified as such cases, since after the alienation of the vehicle, such risk disappears from its previous owner. Accordingly, early termination of the insurance contract in the event of a change in the owner of the car is permitted.

Both parties can initiate such an action. However, the termination conditions are different for them. So:

1. According to Article 958 of the Civil Code of the Russian Federation, the initiator can be the policyholder (that is, the person for whom the document is issued). It is not necessary to explain the reason for such an action. This can be done at any time of the year. The insurer has no right to interfere with the expression of the will of a citizen.
2. The insurance company can also initiate the termination of business relations with the policyholder. However, not unilaterally and if there are substantial grounds. It is possible to terminate a contract without obtaining the citizen’s consent to this action only in court. But if fraud or concealment of information is discovered, the prohibition on unilateral termination is lifted.

Important! If the contract is terminated, no one guarantees that previously paid funds will be returned to the policyholder.

Termination of contracts under OSAGO, for example, provides for the return of funds for the period during which the insurance was not used. This is a general rule that all insurers are required to comply with.

However, in the case of CASCO, funds will be returned only if this is provided for by the terms of the contract. Otherwise, you will not be able to receive payments. Such behavior by the UK is completely legal.

Methods of termination

Current legislation provides for three ways to terminate an insurance contract (including CASCO). Thus, the parties can:

1. Peacefully resolve the process by giving mutual consent to carry out such actions.
2. Resolve the problem out of court. This method is used if, for example, the insurer does not respond to the client’s application or the latter is not satisfied with the terms of the gap.
3. Contact the court. This is an extreme method of terminating the contract, which should be used if the insurance company does not respond to statements and claims, or refuses to satisfy the citizen’s legal demand.

Carefully! The court's decision will largely depend on the contents of the agreement (primarily this concerns the return of funds).

The first method is the most beneficial for both parties. Termination occurs upon application submitted by the client and in accordance with the terms of the concluded agreement.

It makes sense to apply the pre-trial procedure if the insurance company ignores the client’s application. It is advisable to use a judicial termination procedure only if one of the parties violates current legislation.

Procedure

The specific actions of the policyholder depend on what exactly he decided to do. Termination of the CASCO agreement occurs by submitting an application to the insurance company. You will first need to collect a certain package of documents. In the case when the CASCO policy is transferred to the new owner of the car, the process looks different.

With the termination of the contract

If the policyholder decides to terminate the contract, the first thing he must do is to familiarize himself with the rules stated in it. Particular attention should be paid to the issue of refunds.

If there is no such clause in the document, you should not hope to receive financial compensation. We must also not forget about RVD (this abbreviation stands for “business expenses”), using which the insurance company can withhold from five to fifty percent of the amount of CASCO contributions when selling a car.

In any case, the procedure for terminating the contract is as follows:

1. Drawing up an application. There is no specific form, but the document must contain the following information:
   • information about the recipient of the application (the head of the insurance company with which the contract was concluded) and the applicant himself;
   • the start date of the policy, information about the car for which it is issued, the insurance period and the amount of insurance contributions made by the applicant;
   • a request to terminate the document on the basis of which insurance is carried out and to return the funds paid;
   • list of attached documents, date and signature.
2. Collection of documentation. Regardless of the specific circumstances, you will have to provide a copy of your passport, receipts indicating the deposit of funds, the policy itself and account details for refund. You will also need a written document and a copy of the title (if the car is sold).
3. Submitting documents to the insurer's office. The application, along with other documents, must be submitted to the insurance company with which the contract was concluded. You need to come to the office and submit the collected documentation. In some cases, an application can be drawn up directly at the insurer’s branch (sometimes companies issue clients with special forms that meet the company’s internal standards).

After accepting the application, the insurer has no more than two weeks to make a decision on it and return the funds to the client. In case of refusal, the client can use existing legal mechanisms of influence on the insurance company.

Without breaking the contract

There is no need to break the contract. The legislation does not prohibit changing the information about one of the parties to the agreement.

Therefore, in order not to lose personal funds, some drivers sell vehicles along with the policy. In this case, all the nuances associated with the re-registration will be the responsibility of the buyer.

He is obliged to personally appear at the IC office and change the parameters of the contract.

The seller is advised to include the cost of the policy in the price of the vehicle. In this case, you should not count on receiving payments, since they occur only if there is a special clause in the rules of the contract.

In addition, the seller can agree with the insurer to transfer the insurance premium under the policy to the new car.

Delaying payments: procedure

It is not uncommon for insurers to delay refunds. In this case, the citizen can use legal tools to influence the company. The procedure is as follows:

1. Filing a complaint addressed to the director of the enterprise. No more than fifteen days are allotted for its consideration. A claim is an important document that can be used as a basis for filing a lawsuit.
2. Contacting the Central Bank. This can be done using an online reception (that is, remotely).
3. If the complaint and appeal to the Central Bank do not produce results, a lawsuit should be filed. Most companies prefer to solve problems without legal red tape, but if the client’s legitimate demands are ignored, this is a sure way to achieve justice.

Usually the problem can be resolved at the stage of filing a claim.

It is not profitable for companies to participate in litigation, so they prefer to meet customer demands halfway. This behavior is caused by the fact that the law in this case is on the side of the plaintiff.

Conclusion

Thus, in the event of a vehicle sale, a citizen has the right to terminate the insurance contract. Is it possible to return money for CASCO? It depends on the terms of the document. In most cases, this possibility is provided, but not all funds are returned.

To carry out the procedure, you must submit a written application. If the insurer delays payments, you should file a claim and file a complaint with the Central Bank. As a last resort, a citizen can initiate legal proceedings.

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Is it possible to return CASCO when selling a car?

Content

Since the beginning of the 2000s, car owners have been required to insure their auto liability by passing the law on compulsory motor liability insurance. Then CASCO appeared and, it would seem, the car enthusiast was protected from all sides. But the insurance law has been in effect for just under 20 years, and many car owners still do not fully know their insurance rights. This also applies to the issue of getting your money back under CASCO insurance if you sell your car. Let's talk about this in more detail.

What laws are based on CASCO refunds?

If a car owner wants to sell his car, he can do this together with a CASCO policy (if it has not expired). This, by the way, slightly raises the price of the car. In such a development of the situation, the CASCO policy is transferred to the buyer, who will be the further owner of the insurance.

But not everyone knows that the CASCO agreement can be terminated. This is directly indicated by the Civil Code (Article 958) . This article states that the CASCO contract can be terminated early if the policyholder does not have the object of insurance.

And selling a car falls under this definition. After all, the owner of a car, getting rid of it, also gets rid of insurance risks. And if there are no insurance risks , there is no CASCO agreement .

Both the client and the insurers can terminate the CASCO contract. But priority in this matter is given to citizens:

1. Based on the same article of the civil code, the client of the insurers can terminate the contract without giving reasons at any time during the validity of the contract. And the insurance company cannot prevent him from doing this.
2. Insurers themselves can terminate CASCO insurance. But, only through the court, if the insurers were unable to reach an agreement with the client (unilateral termination of CASCO by the insurers is impossible). But, again, there is a “BUT”. If the insurers prove that the client has cheated in some way, this rule loses force and the insurers can terminate CASCO unilaterally .

But there is one important caveat: there is no direct law requiring insurers to return money for unused insurance. As for the MTPL policy, there is a clause in the contract that guarantees payment of the cost of the policy for unused time . But in CASCO there is no such “ obligation ” and if, when signing the contract, there was no clause for returning money under CASCO if the contract is terminated, then the insurers will refuse you.

How can you break a contract?

According to the law, an insurance contract (both OSAGO and CASCO) can be terminated in the following ways:

1. Termination of an insurance contract by mutual agreement when the parties have no claims against each other. This is the easiest way for a citizen to return CASCO insurance and takes the least time (just write an application).
2. Termination of the contract by pre-trial claim (all complaints only in writing). When it was not possible to agree verbally or insurers do not respond at all to requests for a CASCO refund.
3. Through the court . The longest and most expensive method in terms of time, money and nerves. Used as a last resort. Insurer clients should remember that the court may render a verdict not in their favor (depending on what is contained in the contract that the client signs).

What to do if the contract is broken

The procedure for terminating the contract is determined by the client’s wishes. If he transfers the CASCO policy along with the car upon sale, this is one procedure; if he directly terminates the contract and wants to return the money under CASCO, then he will have to act a little differently: write an application and provide some papers. Let's consider each of the methods.

Method of breaking the contract.

So, the citizen wants to break the contract. The first thing he should do is read it. If the contract does not contain a clause under which the insurers, in the event of termination, undertake to return part of the money under CASCO insurance, then the money will not be returned. And even if they return it, it will be only a part (interest is usually specified in the contract). Basically, this is from 5 to 50% of the cost of CASCO when selling a car.

Let's say the contract contains a clause on the return of money under CASCO insurance. Then we do this:

1. Let's submit an application. There is no strict form, but the following information must be included:
   • Information about the client of the insurers and the insurance company itself;
   • The date when the contract was purchased, information about the car and the duration of the policy, as well as the amount of insurance premiums paid by the client;
   • Request to terminate the contract and return money under CASCO insurance;
   • Number, surname of the applicant, signature.
2. We collect the necessary papers. This is a photocopy of the passport, a receipt for payment of the policy, the policy and the account or card number to which the money should be received. If you are selling a car, you need a copy of the sales contract and documents for the car.
3. After collecting all the documents, we attach them to the application and take them to the insurers’ office. We hand it over to the responsible person against signature. Some insurers have ready-made application forms at their offices; you can fill them out there.

After your application with a package of necessary documents has been accepted, the insurance company has 14 days to respond. During this time, they must either agree with your request and transfer you money or write a refusal. There is a third option - insurers will simply ignore the application and not respond. If you refuse and ignore it after 14 days you can sue the insurers .

Method without terminating the contract.

If you sell a car along with a policy and want to return CASCO without terminating the contract, you can change your data in the insurance contract to the buyer’s data . He will also deal with the revision of the contract during a personal visit to the insurers’ office. This is one of the most profitable ways for the seller to return CASCO when selling a car. Because the contract may not contain a clause on the return of funds in case of early termination of the contract, and money for unused CASCO can be easily included in the cost of the car. If a citizen, after selling one car, immediately purchases another, then the insurance company can meet him halfway and, instead of terminating the old one and concluding a new CASCO contract, can transfer the balance from the old contract to the new car .

What to do if insurers are delaying payment

And finally, you have come to an agreement with the insurance company, and they will return CASCO insurance to you when you sell the car. But time passes, and still no money. Below we will tell you what to do in this case:

1. The first step is to write a complaint addressed to the head of the insurance company. Insurers have 15 days to respond to it. In addition, this is a necessary measure for further action.
2. Filing a complaint to the Central Bank . This document can be submitted either in parallel with the complaint to the management of the insurers, or after 15 days .
3. In the event that the first two actions have no effect, go to court . But this is an extreme measure, few insurers take matters to this, because the client has much more legal grounds to win the trial, and even to collect penalties and penalties for late payments.

So, what did we learn from this article? And the fact is that the client has every right to terminate the insurance contract and return the money for CASCO when selling the car only when this was provided for in the contract.

Note to car owners: is it possible to get a refund for CASCO when selling a car and how to do it?

CASCO, or comprehensive car insurance except liability, is a type that is much less common in Russia than compulsory motor liability insurance. This policy is usually purchased by owners of new, expensive cars or those who purchase vehicles on credit.

It is not uncommon for the owner to decide to sell his property, but the contract has not yet expired. Since the cost of a CASCO policy is significant and can sometimes exceed 100 thousand rubles, a refund for already unnecessary insurance coverage can bring tangible benefits to the car seller.

Is it possible by law to get a refund for insurance when selling a car?

CASCO is a voluntary type of insurance, so the policy owner can terminate the contract at any time. The reason is not important: this can happen in connection with the sale, gift of a car, or because the owner simply changed his mind.

This provision is enshrined in Art. 958 of the Civil Code of the Russian Federation. However, the same article states: in case of early cancellation of the insurance contract, the paid premium is not refundable, unless otherwise provided by the contract.

Therefore, the ability to return part of the money paid for insurance depends on what is specified in the terms of the contract of a particular company. Most large insurance companies provide this opportunity, but usually the money is not returned in full, but minus a certain amount “for business.” It can reach from 20 to 50% of the due payment.

How to return funds?

After the car seller has carefully studied the terms of the CASCO agreement and realized whether it is possible to return part of the funds spent on the purchase of the policy, he should choose a further course of action.

Termination of an agreement

If the terms of the contract do not exclude this possibility, and the payment amount satisfies the policyholder, you must contact the company’s office and provide the following documents:

1. Application for termination of the contract. Can be completed at the insurer's office on its form. The following information must be provided:
   • Full name of the director and name of the insurance company;
   • Full name, registration address of the policyholder;
   • contact number;
   • policy number, date of its conclusion, period of validity;
   • make, model, registration plate of the car;
   • the amount of insurance premium paid;
   • bank details for transferring funds.
2. Original policy and receipt of payment.
3. Policyholder's passport.
4. Bank account details for transferring money.
5. Documents for the car: PTS or registration certificate.
6. Contract of sale. However, its presence is not necessary, since there does not always have to be a good reason for terminating a contract according to the law. Some owners prefer to first terminate the insurance contract and then sell the car.

• Download the application form for termination of the CASCO agreement
• Download a sample application for termination of the CASCO agreement

After the application is accepted, a decision is usually made on the same day or the next.

Renewal of insurance for the new owner

Art. 960 of the Civil Code states: when the rights to the insured property are transferred from the person in whose interests the insurance contract was concluded to another person, the rights and obligations under this contract pass to the person to whom the rights to the property were transferred.

Thus, the previous owner has legal grounds to transfer the CASCO policy to the new owner instead of with the car.

The person to whom the rights to the insured property have been transferred must immediately notify the insurer in writing.

This can be done either free of charge or for a fee. It is better to document such a transfer in the purchase and sale agreement or in an additional agreement to it.

This option is more convenient for the seller for several reasons:

• there is an opportunity to receive money for the policy without deducting “for business” from the insurer;
• all the hassle of re-issuing the contract falls on the new owner.

Is it possible to terminate the contract if the car was purchased on credit?

When you receive a car loan, the car is pledged to the bank until it is fully repaid. In this case, CASCO insurance is mandatory; the beneficiary of the contract will be a credit institution.

In this case, the insurance contract can be terminated only when its terms, as well as the terms of the collateral agreement, do not contain a prohibition on such actions. The insurer, among other documents, will need permission from the bank. Some financial institutions are ready to accommodate their clients if the term of the loan agreement is coming to an end or no losses have been reported.

If the terms of the loan prohibit the termination of CASCO insurance, the only way out to refuse insurance is to repay your obligations to the bank ahead of schedule.

How is the termination payment calculated?

The calculation method may differ slightly from company to company, but is approximately the same everywhere. The policyholder can always ask the company's employees to explain exactly how they calculated the amount of payment due. Also, the ability to independently determine the amount of return of the paid premium can be useful when transferring the policy to a new owner.

• Premium is the amount paid at the conclusion of the contract.
• Expenses – the amount spent by the insurer on conducting business. Its size is determined by the terms of the contract and ranges from 20 to 50% of the premium received.
• n – number of unused months (only full months are counted).
• N – the period for which the contract was concluded.
• Payments – the total amount of compensation for losses claimed during the validity of the contract.

Example. The contract was concluded on 02/01/2017 for a period of 12 months. Date of termination: 06/01/2017. The premium paid was 70,000 rubles; during the term of the contract, one loss was settled in the amount of 15,000 rubles. The number of unused months is 8. The insurer's expenses for conducting business are 30%.

What to do if the insurance company is delaying payments?

Usually the decision on payment is made on the day the application is submitted or the next. If a transfer to a bank account is selected as the method of receiving money, this may take up to 10 business days.

However, sometimes unscrupulous insurers delay making a decision, requiring additional documents from the policyholder, or do not transfer the amount due within the acceptable time frame. In this case, you can send a pre-trial claim to the head of the company branch. This can be done in person, by registered mail or by email.

If there is no response from the insurer, you must contact the supervisory authority - the Central Bank of the Russian Federation.

If even this does not help, the only way out is to resolve the dispute in court. Then the company will need to pay not only the money owed, but also compensation for legal costs. Therefore, in practice, insurers try not to bring the case to court and resolve controversial situations peacefully.

If the owner decides to sell the car before the expiration of the CASCO agreement, he does not have to say goodbye to the money paid for the policy. You can compensate for part of the costs in two ways: by contacting the insurance company to terminate the contract or by reissuing the policy to the new owner of the vehicle.

However, it is worth keeping in mind that the first option is possible if the insurance contract contains a clause on the payment of part of the premium paid upon early termination of the contract. And even in this case, the insurer will retain a certain percentage for business management, which is usually 20-50% of the amount due. Therefore, if the insurance was purchased shortly before the sale of the car and, if the new owner does not mind, it will be more profitable to reissue the policy. The insurer's employees are required to do this free of charge; additional payment may be required only if the risk increases.

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