Is it possible to simply transfer the insurance to another car?
Unfortunately, you cannot do this yourself without breaking the law. When preparing a contract, not only information about the owner, but also all the main technical parameters of the car are entered into the database and document. They also affect the amount of your insurance premium. Therefore, it is not possible to simply transfer data from one policy to another.
However, there is a way to get back the unused money from your old policy by investing it in a new one.
To do this, write a letter of termination of the contract in connection with the official sale of the car. Bring documents from the traffic police about deregistration, from the tax office, an agreement and an act of transaction, that is, a sale. The insurance company will cancel the policy, returning funds for the unused period. At the same time, if such a clause was separately stipulated in the contract, the company can compensate for its losses by deducting compensation for early termination of the contract (usually up to 20%).
There is another way to solve the problem with minimal losses. The insurance from the old car is transferred to the new car. This is done rarely and only in agreement with the insurance company. Both vehicles must be covered by the same insurance company. If the company agrees, all that remains is to write an application, attaching the following documents:
- passport;
- driver license;
- PTS;
- a document confirming the completion of a technical inspection;
- previous insurance contract.
The insurance company will amend your existing liability policy and calculate the difference you will pay. As a result, you will be able to insure for less than when concluding a new contract, and you will be able to drive your car without breaking the law.
Deadlines and costs
Renewal of insurance occurs immediately on the day the applicant applies. When you transfer your policy to another car, part of the premium you paid for the old car but won't use in the future is used to pay the cost of the new auto liability policy. Thus, part of the cost of compulsory motor liability insurance for one car is transferred to the cost of compulsory motor liability insurance for the second. In order for such accounting to be carried out, the cars must be insured by one insurer.
The manager of the insurance company will calculate the cost of insuring a new car; if its cost turns out to be more than the insurance premium remaining from the first insurance, you will have to pay the difference. There is no need to pay a commission for concluding a new contract with the company providing the service .
How to rewrite insurance?
Is it possible to rewrite, transfer and convert insurance to another car and how to do this? To get out of this situation, there are several options, each of which differs in certain details:
- Early termination of insurance and subsequent receipt of a new one.
- Renewal of an insurance contract for another car based on an agreement with the insurance company.
When it is necessary to transfer liability insurance to a new owner, the right to insurance passes to the buyer, and the seller of the car, in order to return the money spent on insurance, submits certain documents to the insurance company, which will be described below.
If the insurance was issued by one company, you can simply reissue it for another car. This option is as simple as possible, but not everyone can use it, but only those car owners who have another car and an insurance contract for it has also been issued by this insurer.
This reinsurance method is also suitable for people who buy a new car and insure it with the same company. In this case, it is necessary to conclude an agreement with the policyholder. If all the conditions are exactly the same, the insurance company can simply reinsure the new car. It is very convenient that unused insurance payments will be taken into account when concluding a new contract.
IMPORTANT: In this case, the insurance company will not deduct compensation in the amount of 23%, which is withheld upon concluding an agreement on early termination of the contract.
Re-issuance of a third party compulsory insurance policy takes only one day.
A common option is to terminate the insurance contract early in order to conclude a new contract at a later date. If there are concerns about unused money, the insurance company will financially compensate you for the time the insurance was not used.
There is a clause in the third party insurance contract that defines the conditions for the transfer of ownership to another person. And the document becomes invalid from 00.00 the next day after the sale of the car. Read more about compulsory motor liability insurance when buying and selling a car in a separate article.
In order for everything to go smoothly in this regard, it is necessary to appear at the insurance company on time with a certain package of documents. Documents must confirm the transfer of ownership of the car. Then the insurance company is obliged to return compensation for the time during which the person is no longer the owner of the car.
Termination of the insurance contract before the established period is carried out in accordance with the established procedure.
A request for early termination of the insurance contract must be submitted in writing. The request must be made in writing; many companies have forms available. The reason must be the sale of the vehicle.
After submitting the application, the balance of the MTPL policy is calculated. The insurance company may deduct up to 23% during settlement. For some car owners, this comes as an unpleasant surprise, but there is such a clause in the insurance contract. Therefore, you need to consider whether it is worth going this route. Of these funds, the insurance company retains 2% as a reward for conducting business, and another 3% goes to the Russian Union of Auto Insurers.
The insurance company must pay the remaining money within 14 days of filing the claim. You will learn more details about whether it is possible to receive compensation under compulsory motor liability insurance when selling a car and how to do this in a separate article.
When re-registration is not possible
But renewing the policy for another car is impossible (except for one situation). When the insured vehicle is sold, the old policy remains issued to it. There are the following ways out of the situation:
- Terminate the insurance contract with the insurance company. In this case, the car owner will be returned that part of the funds that corresponds to the unused period of validity of the compulsory motor liability insurance policy.
- Renew insurance for the future owner of the vehicle with the expectation that he will financially compensate for the remaining period of validity of the insurance policy.
- If the MTPL expires in less than a month, then nothing can be done.
It is worth keeping in mind that, based on clause 1.16 of Chapter 1 of the OSAGO Rules, upon termination of the contract with the insurer, 23% of the refunded funds will be withheld. Of these, 20% goes to the insurance company itself (for services provided), and the remaining 3% is paid to the RSA. When renewing a policy, this 23% fee will not be charged.
Options for changing insurance when selling a car
Selling a car is the exercise of your right to dispose of your property. The reasons may be different, but the goal is the same - to get money. Both parties, the seller and the buyer, are interested in minimizing costs. When it comes to cars, purchasing auto insurance policies is considered one. Therefore, it is worth knowing whether it is possible to rewrite the insurance for another car for every car owner preparing to sell it.
The methods for re-issuing insurance to a new owner, regardless of which company provides this opportunity (AlfaStrakhovanie, VSK, Ingosstrakh, RESO, Rosgosstrakh and others), are as follows
- Leaves the policy and changes the contract when purchasing a new car(s). The period of coverage will be limited to the duration of the policy.
- Amends the contract to name the buyer as an eligible driver for the program. At the same time, an agreement was reached on monetary compensation for the continuation of insurance under the MTPL policy.
- He must terminate the contract and return the unspent portion of the insurance premium.
Depending on the agreements on compensation for additional costs and possible risks, the seller decides whether in a particular situation it is possible to change insurance from one car to another. The best option is a written agreement outlining the intentions of the parties.
If the transfer of a car for a fee is carried out without a purchase and sale agreement (for example, under a general power of attorney), the new owner may be indicated as the person authorized to drive the car. To correct this information, the policyholder must come to one of the company's offices, where he represents the buyer not as the new owner of the car, but only as another driver.
By using this option, you do not change the owner of the policy and do not relieve yourself of responsibility for providing correct documents in the event of an accident. This only benefits the buyer.
The answer to the question whether it is possible to reissue an MTPL policy for another car is very useful for the seller. Insurance rules allow this possibility, since financial coverage does not extend to the car, but to liability to third parties.
Important! If the vehicle is not re-registered to the new owner, the responsibility for paying property taxes and fines resulting from automatic traffic control remains with the “old” owner.
There are often cases when the buyer refuses compensation for unused days under the protection contract, and the owner does not think about whether it is possible to transfer insurance from one car to another. In this case, he considers it necessary to terminate relations with the insurer early. The consequences of making such a decision are as follows:
- The insurer receives the policy and documents confirming the identity of the owner;
- the policyholder writes a statement of intention to terminate the contract, with a mandatory indication of the reason;
- An authorized representative of the company will calculate the remaining amount of the contract, including the penalty for early termination at the initiative of the policyholder (about 20%).
Warning. It may take a month from the moment the contract is terminated until the money is actually received. They will be transferred only in the form of a non-cash payment to the policyholder’s bank card.
Step-by-step instructions for re-registration
The procedure for reissuing a policy is the same, however, in each case there are features that depend on which path the alienator and the acquirer choose.
Step one
Preliminary resolution of financial issues. The old owner paid for the entire insurance period, so it is quite natural that he wants to get his money back. If the previous owner wants compensation for unused insurance, and the potential buyer agrees to its terms, he has several options:
- include this amount in the cost of the car;
- receive it from the new owner upon re-registration.
Often, compared to the amount received from the sale of a car, this figure does not seem significant, and this issue is simply not raised.
Step two
Preparation for re-registration of compulsory motor liability insurance at the conclusion of the transaction. The issue of re-issuing an insurance contract must be discussed at this stage. If the car is transferred under a general power of attorney, the new owner can be included in the policy, but if it is a deed of sale, this option will not work - you will have to issue a duplicate policy for the new person.
These points are discussed orally, or recorded on paper if both parties are interested in this. The issue of re-registration of compulsory motor liability insurance can be considered as a separate clause of the property agreement, or a separate document can be drawn up, where the subject of the agreement will be the motor vehicle title.
Step three
Collection of documents. The seller will need a policy and an application for renewal. The buyer must provide a complete package of documents:
- passport;
- property agreement;
- PTS with the latest information;
- driver's licenses of the new owner and all authorized persons.
If we are talking about a legal entity, then you will need to provide a full package of statutory and registration documents to the company to which the car was transferred.
Step four
Visit to SK. The seller and buyer must visit the insurance company together. If the new owner cannot come to the office in person, he can transfer all the listed documents through the previous owner, whose presence is required. This is a common practice when a deal is concluded between good friends.
Step five
The final stage of re-registration. At the end of the procedure, the new owner receives a duplicate of the insurance policy. The old one must be destroyed. In addition, he is given a copy of the receipt for payment of the insurance premium, two copies of the European protocol and the insurance rules.
In what cases is it permissible to transfer insurance?
There is one exception when it is still possible to reissue an MTPL policy.
The law does not directly indicate the transfer of insurance to another car. However, the internal instructions of some insurance companies may allow this in the following situation: a citizen owns two cars, both insured by the same insurance company by the same person. One of the cars is sold, and a new car is purchased in its place. The insurance policy of a sold vehicle can be transferred to a new vehicle.
If, after selling a vehicle, the owner does not have an insured vehicle, it will not be possible to transfer the liability policy to the purchased vehicle.
How to re-register OSAGO for another car
The procedure is performed as follows:
- First, you must make sure that the owner of the vehicle has the right to reissue the MTPL policy. To do this, the conditions described above must be met.
- Gather the necessary documents.
- Come to the insurance company office with your documents.
- Fill out an application to renew your new car insurance and include a list of required documents.
- Obtain a valid insurance policy.
If necessary, insurance can be extended immediately. Then the remaining validity period will be extended, and the insurance on the new car will be valid for exactly one year.
The extension will be carried out with an appropriate surcharge, the amount of which will be calculated by an employee of the insurance company. In this case, payment can be made either at once or in stages.
Documents you need to prepare:
- Contract for the sale of cars.
- Passport of the vehicle for which the new owner is registered (or certificate-invoice).
- Passport of another vehicle or vehicle registration certificate.
- The policyholder's passport or other identification document.
- Driver's license of all persons authorized to drive a vehicle.
- Both insurance policies.
- If the other car is older than three years, a diagnostic card.
- If an authorized person acts on behalf of the policyholder - a certified power of attorney.
The procedure for renewing insurance for a new car is quick. The policy will be reissued on the same day when the policyholder arrives at the company's office. There are no additional fees required - the procedure is completely free.
Only the policyholder or a person authorized to change the insurance contract can contact the insurance company with an application to transfer insurance to a new car. All other persons do not have the authority to change the contract and therefore will not be able to reissue the policy.
Bottom line
Expert opinion
Mironova Anna Sergeevna
Lawyer and lawyer for automobile law. Specializes in administrative and civil law, insurance.
The transfer of the vehicle title is carried out by the official owner of the vehicle on the day the application and documents are submitted to the insurance company. There is no additional payment required for the contract renewal process. You need to have information about the car and the owner with you.
An insurance company specialist makes insurance transfers for the procedure of prolonging the transaction for a second vehicle. The owner has the right to payment of the premium amount (which is not covered by the compensation amount for the first insurance issue) on the day the application is submitted or in stages.
We suggest you read: How to demand money from the bank for insurance
In what situations is it necessary to re-register compulsory motor liability insurance for the new owner of the car?
The new owner of the car will have to have an MTPL policy in his name. Obviously, the old owner is not obliged to reissue the policy to the new owner. However, in the following cases, you will have to renew your auto liability insurance:
- alienation of a car under a contract of sale, gift, exchange, etc.;
- transfer of ownership of a vehicle under a general power of attorney.
There are several options for purchasing an MTPL policy when the owner of a car changes, namely:
- Registration of a new civil liability policy after purchasing (receiving as a gift) a car;
- adding the name of the new owner to the current policy;
- Renewal of the insurance policy to the new owner to use the remaining insurance period.
Good to know! Both parties - the alienator and the acquirer - decide for themselves which path to choose. If there is no contact between the parties and an agreement cannot be reached, the new owner can enter into a new contract. There are no rules governing the procedure for re-issuing a compulsory motor liability insurance contract when selling a car, so the old owner is not obliged to compromise on this issue.
As for the previous owner, he, in turn, can also go in several ways:
- Transfer of liability to third parties to another vehicle - the policyholder can use the remaining insurance period by transferring it to another vehicle owned by him. Transferring liability to third parties to another car is a convenient solution in the case of a double transaction, when the driver buys a new car immediately after selling the old one;
- Terminate the contract with the insurer early and receive the unused portion of the insurance premium. This makes sense when the motorist does not intend to purchase another vehicle in the near future or is planning a move, after which it is not possible to maintain contractual relations with the insurer;
- entering the new owner's data into the insurance policy. This is practiced when transferring ownership of a vehicle under a general power of attorney, without concluding a civil law contract.
Under what conditions is it allowed to transfer to another vehicle?
Since the policy is issued for a specific car, and its technical characteristics, make and model are indicated in the policy, it is generally impossible to transfer it to a second car. According to part two of Article 6 of the federal law on compulsory motor liability insurance, in the event of damage caused by using a vehicle other than that specified in the insurance contract, the insurance is not valid. In this case, when selling a car, you must either terminate the contract with the insurer ahead of schedule (you can find out how to fill out an application for termination of the contract here), or draw up an agreement on the sale of compulsory motor liability insurance along with the car for a fee.
However, under certain conditions, it is possible to reissue an MTPL policy for another car. The law allows the policy to be reissued if at least one of two conditions is met :
If one of these conditions is met, it is possible to transfer insurance from one car to another. In other situations, you will have to terminate your insurance early, or negotiate with the buyer of your car to reimburse you for your insurance premiums.
In what cases will the insurance company refuse?
All legislative acts on compulsory motor insurance VRN explain the procedure for early cancellation, but do not say a word about reinsurance. This gives the insurer the right to act at its own discretion, so you can also refuse to renew the insurance contract in favor of another person.
However, insurance companies understand that it is better to meet the needs of the insured in this matter, for at least the following two reasons:
- A new vehicle owner is a potential customer who is less likely to want to purchase third party insurance if they are denied a renewal. Consequently, the company loses the new car owner as a customer;
- If the insurer refuses, the old owner will likely want to collect the remainder of the premium for the unused period, which is completely legal and completely unprofitable for the insurer.
That is why large and rated insurance companies are almost always happy to agree to redo an existing contract, because they understand that this is the most, if not the most, cost-effective solution. Denials may come from smaller companies citing the individual nature of the insurance business, which prevents them from doing otherwise.
However, sometimes refusal is justified. For example:
- The insurance history of the new owner leaves much to be desired - the coefficients are too high, so the insurance company does not agree to re-register;
- The previous owner had an accident during the current insurance period. In this case, the insurer will almost always refuse re-registration.
In case of refusal, the old owner has no choice but to terminate the contract and receive payment for unused insurance, and the new owner must enter into a new contract with the insurance company of his choice.
What can be changed in the policy and what cannot be changed?
The rules allow you to correct errors that appeared in the form, the cost of the policy or the personal data of the insured.
Information that can be changed by entering data without recalculating the sum insured:
- Name of customer or vehicle owner;
- name of the legal entity;
- make and model of the vehicle after restoration, but provided that it has not undergone changes in category or engine characteristics;
- new VIN number;
- TMP number when replacing it;
- License plate, when replacing or receiving a new plate (information must be received by the insurance company within 3 days from the date of issue);
- changed information about the driver included in the policy.
In the cases listed below, not only new information is entered, but the cost of the policy is also recalculated:
- change of residence or registration of the owner of the vehicle;
- change of brand and model, if during the conversion process the engine category or model, number of seats or maximum permissible weight changed;
- The purpose of using a car changes to working in a taxi;
- the reception restriction changes, i.e. there is a transition from one type of insurance to another;
- a person authorized to drive a vehicle is removed or added.
There is a category of cases the occurrence of which will require the conclusion of a new contract:
- In case of transfer of ownership of a vehicle (without transferring the existing MTPL policy to the new owner);
- The validity period of the policy varies, since the contract is concluded for a certain period of time;
- Replacing the policyholder, you can enter the details of an existing policyholder, but not replace him with another person.
