Renewal of insurance when selling a car

What to do with insurance when selling a car?

Car insurance is convenient for vehicle owners, as it allows them to compensate for unplanned expenses. The only disadvantage of car insurance is the cost of this service. When using the car, the cost of purchasing insurance pays off. But what to do if the vehicle is sold, but the policy is still valid?

For car owners who are faced with this situation for the first time, the question is quite difficult. But in practice, solving this problem is not difficult; the remaining funds will not be lost if you follow a certain algorithm of actions.

What to do with the MTPL policy when selling a car?

The MTPL insurance policy is issued by the car owner when purchasing a car. In the future, it is extended until the vehicle is disposed of or sold to another owner.

It is quite problematic to predict the time of sale by the end of the policy.

Usually the reason for the sale is due to certain circumstances that have nothing to do with insurance.

In accordance with paragraph 8 of Article 15 of Federal Law No. 40-FZ “On Compulsory Motor Liability Insurance” dated April 25, 2002, the insured driver is obliged to notify the policyholder of changes in essential information specified in the insurance contract. Such information, in particular, includes information about the owner of the car.

When selling a vehicle, the MTPL insurance policy can be:

• re-registered to a new owner;
• terminated with the return of the unused portion of the funds.

The policyholder should be contacted as soon as possible after the official transfer of ownership.

When returning funds, the calculation is made from the date of the written request to the policyholder, and not from the moment the purchase and sale agreement is concluded.

Can the policyholder keep the compulsory motor liability insurance?

When selling a car, the car insurance loses its relevance. The policy is registered on a specific car and it is impossible to use it on another car without notifying the policyholder. But OSAGO is very loyal to a change of owner or early termination of contractual relations.

After signing the purchase and sale agreement, the owner must decide on the priority of his actions. If he wants to keep the policy for himself, then this can be done by re-issuing documents for another car. This procedure occurs quite often when the sale of one vehicle entails the purchase of another.

Theoretically, the seller can keep the insurance for himself just like that, but this entails a loss of funds and does not make any reasonable sense. You cannot use a policy that has not been renewed.

How to transfer insurance to a new owner?

Renewal of insurance is carried out in one stage. The procedure is simple, but has its own mandatory steps. To enter the details of the new owner, the seller and buyer must visit the office where the original insurance contract was concluded. If the OSAGO remains with the same owner, but he changes the car, then only the owner of the policy comes to the office.

When visiting the office you will need to present the following package of documents:

1. OSAGO policy.
2. Vehicle purchase and sale agreement.
3. PTS of a sold car and PTS of a new car, if we are talking about changing the car in the papers.
4. Identification card of the new owner when the owner of the policy changes.

Re-registration may entail a recalculation of the cost of insurance. This is possible in two cases - the new driver has less experience, and a car with more power fits in.

Do you need insurance when selling a car?

The process of transferring a car from the seller to the buyer does not require an insurance policy. A vehicle may not have a valid vehicle license at all, but still be sold.

Insurance may only be needed if the car is sold without re-registration of the document.

You can sell a car by signing a general power of attorney. In this case, the rights to the car nominally remain with the previous owner, and the new owner has the opportunity to freely use the vehicle. The two parties can go to the policyholder's company and add the trustee's details to the policy. When entering data for a new user into OSAGO, its validity period does not change.

How is the new owner’s data entered into the contract?

A new owner can be included in the insurance document by terminating the old one and concluding a new policy, or by making additions to an existing contract.

In the first option, the data entry process looks like this:

• a written application for termination of the contract is drawn up;
• a package of mandatory documents is provided, which includes, among other things, the vehicle’s DCP;
• a new insurance contract is concluded with information about the buyer and owner of the car. If necessary, the cost of services is recalculated.

When entering data into a valid insurance document, the procedure is performed as follows:

1. Discuss with the buyer the terms of the transfer of compulsory motor liability insurance. It is recommended to enter into an agreement to pay the full cost of the policy to the seller.
2. Write an application to make adjustments to the vehicle registration certificate.
3. Visit the policyholder together - the seller and the buyer.

Typically, insurance companies have nothing against such changes and freely introduce new information.

How to terminate the agreement?

The MTPL insurance contract can be terminated at any stage of cooperation. Selling the machine is also a valid reason to terminate service. If the relationship is broken, the car owner has the right to receive back those funds that were paid for the unspent period.

The refund amount is calculated as the difference between the elapsed period and the remaining period. In this case, the client receives not 100% of the difference received, but only 77%. The remaining 23% goes to the following needs:

• 20% to cover the costs of the insurance company;
• 3% is transferred to the Union of Russian Insurers.

Each insurance company has its own algorithm for terminating contractual relations, but, in general, it consists of three stages:

1. The car owner contacts the policyholder and writes a written statement.
2. A package of documents is provided.
3. The balance is calculated.

At the last stage, the insured receives the cash difference in his hands.

Where to go?

To terminate the car insurance contract and receive the remaining amount, you must contact the policyholder directly. Contractual obligations can only be terminated by the company where the contract was concluded.

What documents will need to be provided?

To terminate cooperation, the car owner will need to submit an application. The form indicates the reason for termination of the contract, information about the owner and information about the car. The application records the date of application, which is the point for calculating the remaining difference. The following documents are attached to the application:

• original insurance contract;
• document on the purchase and sale of a car;
• passport of the insured.

You should also have receipts for payment of insurance premiums with you.

OSAGO can be terminated due to the sale of a car at any time. If necessary, the existing agreement can be renewed for a new owner or for another car. The insurer has the right to establish its own rules for the procedure for terminating contractual obligations.

Renewal of insurance after selling a car

In the case of re-registration of a car under a purchase and sale agreement from one individual to another, the question regarding insurance arises. What to do with an insurance policy that is transferred to a new owner?

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After all, the seller bought and paid for insurance services, and now he has to part with the policy so easily?

Re-registration of a vehicle is carried out in two ways. This is either donating a car or transferring vehicles into new hands free of charge.

Another option is a purchase and sale agreement or transfer of a car by proxy.

In all of the above methods, a separate role is given to the re-issuance of compulsory civil liability insurance from the previous owner to the new one.

OSAGO is an insurance policy, which is a mandatory document available to all car owners.

When selling a vehicle, insurance can either be transferred to the future owner by adding it to the policy, or you can terminate the agreement with the insurance company and receive compensation for the unused time of the policy.

Any method of transferring insurance rights from the owner to the acquirer is negotiated individually.

Having come to an agreement and agreement, both parties go to the insurance company and report their decision. Based on their consent, the transfer of insurance is carried out.

As a result of selling the car and re-issuing compulsory motor liability insurance, there are several ways to save your money spent on insurers:

• reissue the policy with the consent of both parties, add a new owner;
• terminate the contract early;
• renew insurance for another vehicle.

By adding the new owner to the policy

If you agree that the new owner of the car will use your rights, then you need to contact the insurance company with your decision.

You must first conclude a notarized agreement with the buyer, which states that the citizen purchasing the car is obliged to compensate for the time when you will not use the policy, and the car, respectively.

This process is regulated by Art. 960 of the Civil Code of the Russian Federation, which states that in the event of transfer of rights and ownership of motor vehicles to another person in whose name the insurance is issued, then all obligations under the agreement pass to the buyer.

In the procedure for adding an individual to a document, the main point is that no matter what period you miss, provide the legal organization with information about the real owner of the car and reissue the policy for him.

It is recommended to conclude a deal with the purchaser to reimburse the funds spent on insurance during unused time.

You can calculate the payment amount yourself, but you need to legitimize the agreement with a signature and seal from a notary.

However, it is not necessary to enter into a new transaction to transfer insurance rights; it can be included in a separate clause in the purchase and sale agreement and certified accordingly by lawyers.

Such a procedure can only be carried out if the buyer agrees, hoping for his understanding.

Through termination of compulsory motor liability insurance

When the buyer does not intend to pay compensation and does not make contact, then the next option in matters of car insurance and saving your money will be early termination of the agreement with the insurance company.

According to the procedure, the insurance institution undertakes to pay monetary compensation to the car seller for the period of unused insurance.

When concluding an insurance transaction, it contains clauses where the issue of transfer of the insurance policy is raised in the event of the sale of a vehicle from 00:00 the next day after the transfer of the car.

In order to receive compensation based on termination of the insurance contract from the company, you must provide a contract for the purchase and sale of the vehicle in advance, or rather on the day of conclusion.

Then you can count on payments from insurers for the specified period.

You need to contact the organization that issued the insurance. This option of compensation for damage is more reliable than the first, the terms of which are a notarized agreement between the parties.

But if the agreement is terminated, about 20% of the cost of insurance will be taken from you.

The cost of re-registration of a car by inheritance is indicated in the text.

With alteration of documents for another car

The option of renewing insurance for another car is very rare. After all, to complete the procedure you need to have 2 cars simultaneously insured by the same organization.

Or, when the buyer agrees to keep the insurance company and receive the policy in the same place where you received it.

Then, as a result of your purchasing a new car, all the policy rights from the old car that you sold will be transferred to it.

That is, you will have to pay much less money for compulsory motor liability insurance and the unused insurance time from the sold vehicle will not go anywhere; it will be transferred to a new vehicle.

Which companies can I contact?

As a result of re-issuing insurance, it is necessary to choose an insurer, an institution that will deal with legal issues.

Choosing an insurance company is a responsible step, because your possible chances of receiving compensation under compulsory motor liability insurance depend on the organization.

There are two options. The first is to give preference for re-registration to the same insurance company that issued you OSAGO. She will be more loyal to you and your problems.

In another case, it is necessary to look for a new institution that will resolve the dispute between the buyer and seller.

Below is a list of institutions that are engaged in the re-issuance of insurance policies as a result of the purchase and sale of cars, as well as the issuance of compulsory motor liability insurance:

Under services, it is not the cost of compulsory motor liability insurance, but specifically the payment for the work of employees and the re-registration of documentation and ownership rights to compulsory motor liability insurance.

The buyer will need to pay the rest of the amount to the owner for the use of his insurance time.

When choosing insurers, pay attention to the reliability of the company, evaluating the institution’s work according to your criteria.

You should not lose sight of the cost of legal services. After all, companies charge different amounts of money for similar work.

Pay attention to the bonus offers and discounts that the insurer offers. Try to take advantage of this great offer. This will provide an opportunity to save money.

You can assess the reliability and performance of institutions by contacting independent experts and brokers, reviewing the ratings of organizations in independent agencies, and drawing a conclusion about the company based on the information received.

What documents need to be collected for the seller and buyer?

As a result of the re-registration of the vehicle to a new owner and the transfer of insurance rights to the buyer, in order to receive the money spent on insurance, the seller must provide documents confirming the ownership of the car and the presence of compulsory motor liability insurance:

List of documents:

• the first document is a statement written to the insurance company about the return of the cost of unused insurance;
• a photocopy of the vehicle purchase and sale document;
• photocopy of the vehicle passport;
• insurance directly;
• OSAGO payment receipts.

It is not necessary to certify the above documents. Insurers do not look closely at the registration certificate and the purchase and sale document.

Their main goal is the insurance itself and the fact of payment for it. However, it is worth attaching copies of documents to the car to substantiate the requirements and prevent the institution’s employees from dragging out the procedure for a long time.

The package of documents for the transfer of insurance as a result of a mutual agreement will differ only in the notarized agreement on reimbursement of the cost of insurance by the buyer.

But this clause can also be written into the purchase and sale agreement. The right to manage your insurance remains with you.

As for the buyer, he must have the following documents:

• Russian civil passport;
• a copy of the purchase and sale document.

The process of re-registration of compulsory motor liability insurance

There are two ways to renew insurance for a new car owner: upon termination of the transaction and by mutual consent of the persons with the addition of the purchaser to the list.

As a result of termination of the contract, the following steps must be completed:

1. It is necessary to write an application to terminate the transaction with the insurer.
2. Provide the company with the purchase and sale document.
3. Based on the documents, the employees cancel the agreement.
4. You are given compensation for unused policy time, and a commission of 20 -23% is charged.

If the buyer is included in the policy, it is necessary:

1. Make a preliminary agreement with the buyer and conclude an agreement on future reimbursement of the cost of the policy to the seller
2. Notarize the agreement
3. The policyholder must write an application requesting that it be included in the policy
4. Both come to the insurance company and add the buyer to the insurance and replace the insured

It's up to you to decide what to do in a particular situation.

Are there any changes in 2018

Re-issuance of an MTPL policy when selling a car is a procedure for transferring rights to insurance from the seller to the buyer. Rights to compulsory motor liability insurance can be transferred either by mutual agreement or as a result of termination of the contract.

In 2018, technical inspection for new cars under three years of age was canceled.

However, if you purchase a vehicle and want to renew your insurance, you will have to undergo maintenance as a result of the termination of the insurance contract of the previous owner and the unwillingness to rewrite your current policy to you.

Accordingly, the insurer will change, with whom the acquirer enters into a new contract and purchases a policy in accordance with all relevant rules.

It is possible to renew existing insurance in 2105 in companies by agreement of both parties.

As for the changes in 2018 regarding the required documentation, there are no changes.

It can be noted that insurers do not pay close attention to the car, registration certificate and maintenance; all attention is focused on compulsory motor liability insurance and accompanying payment receipts.

OSAGO is a mandatory insurance policy for vehicle owners.

As a result of the sale of a car, a citizen who has valid car insurance can transfer it to the buyer, subject to compensation for damage.

Otherwise, the owner cancels the contract and receives compensation not from the potential owner, but from the insurance company, to which he provides the relevant documents to confirm ownership of the car and compulsory motor liability insurance.

Therefore, it is possible to re-register compulsory motor liability insurance only by mutual consent of both parties by concluding an agreement signed by a notary. Otherwise, the purchaser will have to re-issue compulsory motor liability insurance, provide a technical inspection and other documents.

How to transfer a car to a relative, read here.

The procedure for re-registration of a car upon sale can be found on the page.

Video: What documents are needed to register a car with the traffic police? Buying/selling a car

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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 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.

Is it worth renewing CASCO and MTPL agreements when selling a car?

When selling a vehicle, there is a need to re-register not only the vehicle’s registration certificate with the traffic police. The details of the MTPL and CASCO insurance policies must also be changed. The insurance rules clearly state: the policyholder is obliged to notify the insurer of a change in the owner of the object of insurance protection and other essential details of the insurance contract. The situation with the re-issuance of a motor vehicle policy when the owner of a vehicle changes is spelled out in the law “On Compulsory Motor Liability Insurance”. With CASCO the situation is a little more vague.

Calculate CASCO insurance – in 18 companies in 2 minutes

Selling a car by general power of attorney

Re-registration of OSAGO

The rules of auto insurance are categorical: the MTPL contract can be terminated early only if the owner of the vehicle changes. The insurance contract may not be canceled after the sale of the car. But then the unused funds of the insurance company will actually be donated by the policyholder. A general power of attorney only gives the right to operationally drive a car. A citizen becomes a full owner only after drawing up a purchase and sale agreement (SPA) or issuing a certificate-invoice for the car. By the way, filling out the corresponding field in the car’s title is a minor procedure from the legal side.

Therefore, it will not be possible to terminate the MTPL agreement in case of selling a car at a “general” price. You just need to add new drivers to your insurance policy. Moreover, this can be done within 10 days from the date of receipt of legal rights to the car. Before the expiration of this period, the holder of the general power of attorney is not required to take any actions with the MTPL policy.

Re-registration of CASCO

CASCO is a voluntary type of insurance. You can terminate the insurance contract or change its essential terms at any time while the agreement is in force. Depending on the insurance rules of a particular organization, a general power of attorney allows you to reissue CASCO insurance to a new beneficiary, add additional drivers to the policy and exclude the previous ones. If the new owner does not need a voluntary policy, then both the previous and the new owner of the car can terminate the contract. If, of course, a notarized power of attorney gives him the right to such actions.

Contract of sale

Re-registration of OSAGO

For the buyer of a car, the car title of the previous owner is not valid. Firstly, the owner of the vehicle changes. Secondly, when the vehicle registration certificate is reissued, its number changes. Thirdly, the state registration plate may change. All this data is displayed in the MTPL policy.

According to Law 40-FZ, only the original policyholder has the right to make changes to the auto insurance policy. After selling the car, the new owner has no legal grounds to ask a virtual stranger for this. Therefore, the MTPL policy cannot be reissued when selling a car under a policy. The former owner must terminate the insurance contract, and the new owner must enter into his own. Only the previous owner of the vehicle is entitled to receive funds under the old policy. Of course, if the new owner does not have a general power of attorney for these legally significant actions.

Re-registration of CASCO

When purchasing a car using a policy, the new owner of the vehicle has two options for dealing with the CASCO policy:

• Terminate the contract.
• Renew the CASCO policy for yourself.

However, we note that the situation with the renewal of the CASCO agreement is not so clear. Some insurers do not give their clients such broad powers. Thus, many companies refuse to enter into a CASCO agreement, where a third party is designated as the beneficiary. To prevent possible controversial situations, you must carefully study the insurance rules and the text of the insurance contract before signing it.