Re-issuance of an MTPL policy upon a change of owner

Under what conditions can you re-register compulsory motor liability insurance for a new owner when selling a car and how to do this?

It is not so rare to encounter questions from motorists regarding what to do with the compulsory liability insurance policy for people driving a car when selling a car. OSAGO - regulates compensation for losses and damage that you caused to third parties - the vehicle, the life and health of the passengers in it.

Does the new owner need to purchase his own policy or can the existing one be reissued? We will try to answer this question in detail today.

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Is it necessary to reissue the policy when there is a change of owner?

It is not at all necessary for the vehicle buyer to formalize his/her MTPL agreement. If for some reason a new car owner cannot buy a policy within the period prescribed by law, namely within 10 days from the date of taking ownership of the property, then he can agree to reissue the existing one.

When concluding a purchase and sale transaction for a vehicle, you can also agree with the former owner of the car to reissue the policy in your name , in which case you will have to reimburse the former car owner for part of the insurance premium for the period of validity of his insurance that remained unused.

You can reissue a compulsory insurance policy only if you agree on this with the policyholder of the purchased vehicle, because all amendments to this document can only be made by the person who has taken out this insurance.

The policyholder and the owner of the vehicle can be different people. When selling a car, the person who insured the vehicle has the right to dispose of his insurance at his own discretion. There are three options:

• Terminate the insurance transaction with the insurance organization, after which the insurance company will have to pay you compensation within the due period (14 days).
• Reissue your insurance policy to the buyer of your car and receive compensation for the remaining period from it.
• Transfer your insurance to another vehicle.

The simplest option for the former owner of the car, which is most often chosen when selling a vehicle, is to terminate the transaction with the insurance company and receive compensation payments from the insurance company. You can find out how to correctly write an application for termination of a contract under compulsory motor liability insurance in this article.

What is this procedure?

Re-registration of compulsory motor liability insurance can only be carried out by the policyholder. When reissuing a policy, it is best to change not only the information about the owner in this document, but also replace the information in the policyholder column by entering the new owner in it. Since if you only change information about the owner, then if the new owner of the car needs to make changes to the policy, he will not be able to do this without you. To find out whether it is possible to issue compulsory motor liability insurance not for the owner of the car, but for a third party, read in this material.

Step-by-step instruction

When can this be done?

Renewal of the MTPL policy when selling a car is possible only if there is an agreement between the new owner and the policyholder.

Required documents

Now let's find out how to correctly reissue a policy when selling a car to a new owner. To re-register, you will need to prepare the following documents:

1. A statement written by the policyholder.
2. A photocopy of the car purchase and sale agreement.
3. A photocopy of your vehicle's passport.
4. The insurance itself.
5. Policyholder's passport.
6. Receipt confirming payment of the insurance premium.
7. Passport of the new owner of the vehicle.
8. Driver's licenses of all citizens who will be allowed to drive this vehicle.

Re-registration procedure

In order to reissue the insurance contract to the buyer, you need to enter into an agreement with the new owner to return part of the insurance premium to you for the unused period of insurance. This agreement must be notarized.

You can also include a clause on such an agreement in the vehicle purchase and sale agreement; accordingly, such an agreement must also be certified by a notary. After concluding an agreement to return part of the insurance premium for the period of validity of the contract that was not used (you can calculate the amount of compensation yourself), the policyholder and the new owner of the car must appear at the insurance organization where this contract was concluded.

In the procedure for adding a new car owner to an auto liability policy, the main thing is not to waste time and notify the insurance company of your intentions.

You must promptly inform the insurance organization about the change of ownership of the car and, accordingly, reissue the policy for it. At the insurance company, you will have to present the insurance company manager with the entire necessary list of documents, after which the insurance company employee will re-issue the insurance contract and issue the new owner of the car a new auto liability policy.

After the insurance contract is reissued, an employee of the insurance company must make changes to the unified PCA database. After this, the new owner of the car will be obliged to pay you part of the insurance premium for the unused period of validity of the MTPL. You can calculate the amount of compensation yourself - in this case, the number of unused days is divided by the number of days of insurance coverage.

For example, the contract was concluded for a year (i.e. the period of insurance coverage was 365 days), it will be valid for another 100 days, then 100 / 365 = 27.3%

A motor vehicle policy is always issued for one year (how much does it cost?), but the period of insurance coverage can be different, but not less than 3 months. You can read more about the conditions and prices for obtaining temporary insurance in this material, and here we talked about the pros and cons of compulsory motor liability insurance for six months.

But it should be taken into account that when terminating the contract with the insurance company, the policyholder will not be able to receive a 100% refund, since 23% is retained by the insurance company - of which 20% is deducted to the insurance company for conducting this case, and 3% goes to the RSA. The total is 0.273 X 0.77 = 0.21, that is, you will be required to return to the policyholder only 21% of the insurance premium paid by him.

Deadlines and costs

You can re-register a civil liability contract in one day. The insurance company employee must amend the contract on the day the applicant applies. If you have all the necessary list of documents on hand, then you will not have any difficulties.

You won’t have to pay anything to renew your car liability agreement. Only the new car owner may have to pay extra for the contract, and then only if he wants to include several drivers in the civil liability contract or make this contract open. We talked in more detail about the factors influencing the cost of compulsory motor insurance and the differences in prices in different insurance companies here.

Only the person who took out the insurance has the right to amend the document or terminate it (how to fill out an application for termination of the contract?). If the owner of the car is not the policyholder, then you should negotiate the renewal of the current policy not with the former owner of the car, but with the policyholder.

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.

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:

1. original auto insurance contract, certified by the signatures of the parties;
2. insurance rules;
3. reminders about behavior in the event of a traffic accident;
4. 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.

How to get money back for compulsory motor liability insurance when selling a car?

Denis Fisenko / August 13, 2015

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

After selling a car, in most cases, the owner still has unused compulsory motor liability insurance. Let's say a car owner took out a car insurance policy for a year, and after six months he sold his car. At the same time, he still has insurance for the remaining 6 months. The question arises, what to do with it? There may be several options here:

• Re-register compulsory motor liability insurance for the new owner;
• Make a refund for compulsory motor liability insurance when selling a car;
• Re-register a car license for another car;
• Include the new owner in the policy if the car is sold under a general power of attorney.

First, let's consider the option of reissuing an MTPL policy when there is a change of owner. In this case, the Policyholder, i.e. the person in whose name the MTPL policy is issued must go to the office of the insurance company and write an application to change the policyholder. To do this, you must present the driver's license of the new policyholder and the purchase and sale agreement, as well as a copy of the title issued to the new owner. It is important to understand here that formally the concepts of “policyholder” and “owner” are different. The owner is the owner of the insured vehicle. And the policyholder is the person who has entered into the MTPL agreement. It could be two different people. At the same time, you can change both the owner of the car and the insured in the MTPL policy.

But you should take into account that if you sell a car and change only the owner in the MTPL policy, then you will have to participate in the preparation of all documents to receive insurance payment in case of an accident. Therefore, this option should be used only when the car is re-registered to one of the relatives, and you, for example, continue to drive it.

If the car is sold to a stranger, then it is better to change not only the owner, but also the insured, in order to avoid unnecessary worries in the future.

In this case, the cost of the MTPL policy will be recalculated if the new policyholder has higher coefficients of KBM and KVS. Immediately after you have reissued the MTPL to the new owner, he will enjoy all the rights of the policyholder for the remaining period of insurance.

An alternative option for what to do with compulsory motor liability insurance when selling a car is to reissue the policy for another car. For example, if you sell an old car and immediately buy a new one, you can re-issue insurance for a new car for the remaining period of insurance. To do this, you also need to visit the office of the insurance company and bring a copy of the purchase and sale agreement for the old car and all the documents for the new car. In this case, the cost of the car insurance policy will be recalculated only on the condition that the new car has more engine power than the old one.

How to get money back for compulsory motor liability insurance when selling a car?

But if you are not going to reissue the MTPL policy for a new car owner or for another car, you can simply return the money for the remaining insurance period. If you are going to make a refund for compulsory motor liability insurance when selling a car in Moscow, Yekaterinburg, St. Petersburg or any other city in the Russian Federation, you must also bring a copy of the purchase and sale agreement (without it you will not get your money back).

You can get your money back for compulsory motor liability insurance when you sell your car, and the estimated date for calculating the return is the date following the filing of the application with the insurance company. Therefore, do not delay your trip to the UK. The refund amount is calculated using the formula below:

Refund amount = Policy price*number of remaining days of insurance/365 – 23%

23% is usually calculated for various expenses (3% goes as contributions to the RSA, and 20% to the insurance fund). However, these 23% are not established by law anywhere, so they are not entirely legal.

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

In situations where you re-register a car in the name of a relative, say, your wife, who was already driving the car, you don’t have to re-register the MTPL policy when the owner changes. This can be done if you transfer the car under a general power of attorney: that is, when it is still in your possession, but another person, under a power of attorney, can perform all necessary actions with the car.

In this case, it is enough to simply add a new driver in whose name the power of attorney is written into the motor vehicle policy.

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.