Is it even possible to re-register OSAGO for a new owner?
When concluding a transaction, be it a gift, purchase or sale, or transfer of a car by proxy, the alienator relieves himself of liability to the victim in the event of an insured event. As soon as the vehicle is transferred to the new owner, the MTPL agreement is no longer valid. Motor vehicle liability is assigned to the new owner, therefore, the policy must be reissued within 10 days.
Is it possible to re-issue MTPL for a car if the owner has changed? Among the possible options, there is one such as re-registration of the MTPL agreement from the old owner to the new one. By the way, insurers are much more willing to take this step, which cannot be said about the payment of compensation for early termination of the contract, which is provided for in Art. 10 clause 4 of the Law “On Compulsory Motor Liability Insurance”.
New rules
In the fall of 2021, the rules for issuing a civil liability policy for motorists underwent changes. The conditions for obtaining its electronic versions have also been adjusted. Plus, tariffs for concluding MTPL insurance contracts have increased. Thus, the coefficients for age and driving experience have changed. And in 2021, it is planned to increase the base cost of the policy.
The rules for concluding contracts with insurance companies remain the same. Let's consider whether insurance is valid when the owner of a car changes.
In what situations is it necessary to re-register compulsory motor liability insurance for the new owner of the car?
The new owner of the car will need MTPL insurance, which includes his name. It goes without saying that the old owner is not obliged to reissue the policy to another owner. However, the vehicle license will have to be redone in the following cases:
- alienation of a car under a contract of sale, gift, exchange, etc.;
- transfer of the vehicle under a general power of attorney.
There are several options for purchasing an MTPL agreement if the owner of the car has changed, namely:
- registration of a new MTPL policy after purchasing (receiving as a gift) a car;
- adding the name of the new owner to the current policy;
- re-registration of a car title to a new owner in order to use the remaining insurance period.
Good to know! Which of the above paths to take is decided by both parties, both the alienator and the acquirer. If contact between them is not established, and there is no possibility of reaching an agreement, then the newly minted owner remains to draw up a new contract. Not a single regulatory act regulates the procedure for re-issuing an MTPL agreement when selling a car, so the old owner is not obliged to meet halfway in this matter.
As for the previous owner, he, in turn, can also go in several ways:
- re-registration of the MTPL contract for another car - the policyholder can use the remaining insurance period by transferring it to another vehicle belonging to him. Rewriting OSAGO for another car is a convenient way if there is a double transaction when a motorist purchases a new car immediately after selling the old one;
- termination of the contract with the insurer ahead of schedule and receipt of the unused portion of the insurance premium. This makes sense if the motorist does not intend to buy another vehicle in the near future or is planning a move, after which it is not possible to maintain contractual relations with this insurer;
- entering information about the new owner into the insurance. This is practiced when transferring a vehicle under a general power of attorney, without drawing up a civil law contract.
The issue of renewing insurance for the new owner is discussed in advance. It is discussed at the request of the parties: either orally or documented. In this case, the decision remains between the old owner and the new owner of the car - the details of the re-registration can be covered in a separate clause in the property agreement (deed of sale, deed of gift, exchange) or stipulated in a separate written agreement concluded between the parties and certified by a notary (which is not a mandatory condition) .
Reflection of data about a new person in the policy
Sometimes the transfer of powers between citizens is realized through the execution of a power of attorney in general form. When individuals have expressed their consent for the new owner to use a previously issued policy, they will need to visit the insurance company and indicate that such a decision has been made. Based on the information above, we can conclude whether it will be possible to keep the insurance when selling the car or not. The answer to this question is positive, provided that the necessary adjustments are made to the document.
When using this option, it is recommended to issue an additional type of agreement. This is due to the fact that the new owner has the opportunity to pay monetary compensation for the use of previously issued insurance. This option should be considered as the most optimal and logical. When it becomes necessary to calculate the amount that needs to be returned to the client, you can use a fairly simple calculation. It is necessary to divide the entire amount of funds paid for the policy by the number of days in the annual period, if the agreement is valid for a year. After which, the amount is multiplied by the number of days during which the agreement was not used.
The specified re-registration technique can be used in a situation where these actions are implemented within one region. The total value of the act in question must be taken into account in each specific case, since it may have a different expression. An important point is that contacting a notary office when transferring powers should be used if there is the will of the participants.
In what cases will the insurance company refuse?
All legislative acts relating to compulsory insurance provide an explanation of the procedure for early termination of compulsory motor liability insurance, but they do not say a word about re-registration. This gives the insurer the right to act at its own discretion, so refusal to renew the insurance contract to another person is also possible.
However, insurance companies understand that in this matter it is better to meet the policyholder halfway for at least the following two reasons:
- a new car owner is a potential client who is less likely to want to buy compulsory motor insurance where he was refused to renew the contract. Consequently, the company loses the new owner of the vehicle as a client;
- if the insurer refuses, the old owner will most likely want to collect the remainder of the insurance premium for the unused period, which is completely legal and completely unprofitable for the insurer, and it will not be possible to refuse this either.
Therefore, large and rated insurance companies almost always willingly agree to reissue an existing contract, since they understand that this is the most, if not profitable, then the optimal scenario for the development of events. Refusal may come from small firms citing the individual characteristics of running an insurance business that do not allow doing otherwise.
However, sometimes the refusal is quite justified. For example:
- the insurance history of the new owner leaves much to be desired - the coefficients are too high, so the insurance company does not agree to re-register;
- the previous owner caused the accident during the current insurance period. In this case, the insurer almost always refuses to re-register.
In case of refusal, the old owner has no choice but to terminate the contract and receive payment for unused insurance, and the new owner must enter into a new contract with the selected insurance company.
Step-by-step instructions for re-registration
The procedure for reissuing a policy is the same, however, in each case there are features that depend on which path the alienator and the acquirer choose.
Step one
Preliminary resolution of financial issues. The old owner paid for the entire insurance period, so it is quite natural that he wants to get his money back. If the previous owner wants compensation for unused insurance, and the potential buyer agrees to its terms, he has several options:
- include this amount in the cost of the car;
- receive it from the new owner upon re-registration.
Often, compared to the amount received from the sale of a car, this figure does not seem significant, and this issue is simply not raised.
Step two
Preparation for re-registration of compulsory motor liability insurance at the conclusion of the transaction. The issue of re-issuing an insurance contract must be discussed at this stage. If the car is transferred under a general power of attorney, the new owner can be included in the policy, but if it is a deed of sale, this option will not work - you will have to issue a duplicate policy for the new person.
These points are discussed orally, or recorded on paper if both parties are interested in this. The issue of re-registration of compulsory motor liability insurance can be considered as a separate clause of the property agreement, or a separate document can be drawn up, where the subject of the agreement will be the motor vehicle title.
Step three
Collection of documents. The seller will need a policy and an application for renewal. The buyer must provide a complete package of documents:
- passport;
- property agreement;
- PTS with the latest information;
- driver's licenses of the new owner and all authorized persons.
If we are talking about a legal entity, then you will need to provide a full package of statutory and registration documents to the company to which the car was transferred.
Step four
Visit to SK. The seller and buyer must visit the insurance company together. If the new owner cannot come to the office in person, he can transfer all the listed documents through the previous owner, whose presence is required. This is a common practice when a deal is concluded between good friends.
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.
What is insurance and why is it needed?
First of all, you need to answer the question of what a vehicle insurance policy means. This insurance is required for all drivers without exception; driving without it is illegal.
The document insures the civil liability of the car owner, and it is issued not for the car, but strictly for the person who drives it.
If other family members or employees of the same company are allowed to drive a car, everyone who will drive the vehicle must be included in the insurance policy.
In some cases, it is possible to draw up an insurance contract without any restrictions, that is, every driver will be able to drive the car.
If the previous owner of the car took out a policy for a year, then when selling the vehicle you will need to visit the insurer’s office and make all the required changes.
The buyer must also issue a new insurance policy or reissue it, since the basic information data has been changed.
Based on everything said above, we can conclude that re-registration of compulsory motor liability insurance for another car when purchasing and selling a car is mandatory for both the seller and the buyer.
Moreover, the rules of modern car insurance clearly state that the owner of the car must notify the insurer of all changes made to the contract.
The main algorithm of actions in the process of changing ownership is described in the law regarding automobile insurance.
Features of recalculation during re-registration
Unfortunately, the specifics of calculating the insurance premium in this case, as well as the re-registration procedure itself, are not covered in any regulatory act. Therefore, insurers act at their own discretion and recalculate only upward. So the new owner:
- or pays the missing amount if his insurance history is worse than that of the former owner;
- or does not take any steps, even if his history is better than that of the alienator.
On a note! Insurers are always reluctant to part with an insurance premium, even considering that the procedure for early termination of a contract is regulated by law. Therefore, in matters of recalculating insurance downwards during re-registration, they are, as a rule, unshakable.
Important Tips
- it is impossible to resolve the issue of re-registration remotely - it is best to visit the main office and rewrite the policy to the new owner there;
- if the old owner wants to renew the contract for a new one and at the same time receive compensation for unused insurance, then the best option would be to include this amount in the cost of the car and not discuss this issue separately;
- the insurance company must be notified within three days of receiving new license plates after re-registration of insurance;
- A duplicate policy is usually issued free of charge, but some insurers insist on additional payment - on average 400-600 rubles.
