Every time you buy or sell a car, the question arises: what to do with insurance and should it be given to the new owner? In this article we will consider all the nuances and answer your question.
Is car insurance valid?
To begin with, is the insurance transferable or does the new owner have to purchase the insurance policy again? Based on the law on OSAGO insurance, we can conclude that the insurance policy is issued for the VIN code of the car, and not for the policy owner. This means that any driver can legally drive. But, there is always this “but”.
And the nuance lies in the fact that the registration zone of the owner of the vehicle affects the validity of insurance. In simple words, if the previous owner was registered in the region, and the new one in the city, then the insurance must be terminated and a new one issued. Otherwise, or if the zone is equal, the insurance continues to operate.
Do I need to re-register a motor vehicle for a new owner?
If you follow the nuances from the previous paragraph, you can transfer the insurance to the new owner and it will be valid until the end of the validity period specified in the policy.
How to terminate the insurance contract and return part of the money?
If you still decide to terminate the insurance policy and want to return part of the funds, then you need to contact the insurance company from which you purchased the insurance. The company will calculate the remaining cost and will be able to return the rest of the money. But here there is a small nuance. The less left until the end of the insurance, the less the amount remains for a refund. Also, if less than 1 month remains before the end of the insurance, the insurance company may not return the funds at all.
If you are buying a new car and you want to transfer the rest of the funds to a new policy, then you can also do this and, moreover, it will most likely be more profitable than returning the money.
How to check that the purchased car already has insurance?
When buying a car, you can also check the validity of the insurance if the previous owner did not transfer the insurance policy. But be careful that in order to check the insurance, you must indicate the car number that was indicated in the old insurance or the policy number. Since when reissuing, most often new license plates are issued, you will not be able to check the validity of the insurance. This is a very important point, because in the event of an accident, huge problems can arise.
What happens if you buy new insurance without terminating the old one?
If you have not checked the validity of the previous OSAGO insurance and have issued a new one, then you must understand the following insurance rules:
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When applying for several insurance policies, the one that was first registered in the unified MTIBU database is valid at the same time
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In the event of an accident through your fault, you must contact the insurance company that first issued the insurance policy
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If, for some reason, the validity of insurance in one insurance company, and you write an application for an insured event in another, then you may be subject to recourse from the insurance company, which will pay for the damage. What is regression is already a topic for a separate article.
Results
So, when selling a car and transferring insurance, it is necessary to take into account many factors that affect the operation of a compulsory insurance policy for an auto citizen. Read the article carefully and take into account all the nuances.
If you are a client of our company, our managers are always happy to advise you on any questions.
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