What to do with insurance when selling a car. Methods for re-issuing an MTPL insurance policy to the new owner of a car. The procedure for re-registering a car with an insurance company.
Unfortunately, not every person can afford to buy a new car. Therefore, many citizens purchase used cars from other owners. After this, new vehicle owners often face a number of difficulties. For this reason, they often ask the question: is it possible to re-register a car without insurance? Unfortunately, at present, no one will register a car without an issued MTPL policy with the traffic police. Moreover, a person who bought a used car must know that he needs to urgently go to the insurance company and draw up a new document. Otherwise, he will face penalties. After all, after the sale of the car, the validity of the previous MTPL policy issued to the old owner automatically ends.
How to do everything right?
After purchasing a car, the new owner is faced with solving a large number of organizational issues. The main one is to insure your car and register it with the traffic police. It is best to resolve such issues yourself. There is no need to turn to intermediaries and pay extra money for it. After all, you can easily run into scammers.
In addition, many car enthusiasts, after purchasing a car from another owner, wonder whether it is possible to re-register a car without insurance? After all, people are not always willing to pay money for additional services. To do everything correctly, you need to know that it will not be possible to re-register a car without an MTPL policy. Because it is included in the package of documents that are needed in order to register the vehicle with the traffic police.
Must be provided
So, is it possible to re-register a car without insurance? As mentioned above, you cannot register a vehicle without first obtaining a compulsory motor liability insurance policy. Indeed, for this procedure it is necessary to provide the following documents to the traffic police:
- an application of the established form, which, as a rule, is filled out right on the spot;
- passport of the new car owner;
- power of attorney, if registration is handled by an intermediary;
- documents for the car;
- purchase and sale agreement (sometimes the traffic police will accept a copy, but it is better to take the original with you);
- OSAGO policy.
Thus, you simply cannot do without prior insurance. Moreover, without this document, no one will accept the remaining papers. You need to know this.
Important
In the application that the car owner fills out at the traffic police, there is a certain column in which you must include:
- MTPL policy number;
- name of the insurance company;
- date of conclusion of the contract.
Accordingly, the list of documents required to register a car with the traffic police contains a paragraph dedicated to Therefore, it will not be possible to do without this paper. Citizens who are wondering whether it is possible to re-register a car without insurance should know that the traffic police will not register the vehicle until the car owner brings the MTPL policy. The list of documents must be complete.
Additionally
So, you can get car insurance in a short time, but it is best to do this immediately after purchasing the vehicle. If anyone thinks that there are other options for registering a car, then they are seriously mistaken. Therefore, you should not look for ways to circumvent the law. Nothing will come of this. The car owner will only waste his time.
Therefore, when answering the question of whether it is possible to register a car without insurance, it is necessary to say that this can only be done after issuing an MTPL policy. That's the order.
Grounds for refusal
If a motorist does not provide the traffic police with an MTPL policy along with a package of other documents necessary to register the car, the latter will be denied registration of the vehicle. This will be completely legal.
Experienced drivers already know that re-registration of a car and insurance are mutually related to each other. Because without a new MTPL policy, it will not be possible to register the purchased car. These are the rules.
Do I need to change my insurance?
So, as said earlier, not all people can afford to buy a new car, so they buy a used car. But some drivers are not aware that insurance must be changed after purchasing a vehicle. Although, according to the law, this must be done.
In addition, after purchasing a car, the new owner must insure his motor third party liability. This must be done within ten days after purchasing the vehicle. Then the motorist is obliged to come with all the documents to the traffic police and register the car.
If the car is insured
Situations often arise when a car owner is forced to sell his car urgently. At the same time, there is still a lot of time left until the end of the MTPL policy. What can be done in this case? First of all, after selling the car, the former owner has the right to ask the insurance company to return the remaining amount of funds. After all, the terms of the MTPL policy lose their force. In such cases, companies often try to withhold 20 percent of the amount that the client demands to be returned.
In addition, you can reissue insurance in the name of the car buyer. This is done if the seller does not object to this. The insurance company is not always ready to agree to such conditions, but most often it agrees. After all, the new owner of the vehicle will assume obligations under the current policy. This means that the company will not lose a client. To perform such actions, you need to provide the following package of documents to the insurance company:
- the contract itself;
- OSAGO policy;
- receipt for payment for the service;
- a statement from the buyer that he wants to reissue the insurance to himself.
This option is rare in practice. Because in most cases, after purchasing a used car, citizens immediately try to enter into an agreement and obtain an MTPL policy with another insurance company. After all, without this document you don’t even have to come to the traffic police.
Therefore, those citizens who are wondering whether it is possible to re-register a car without insurance should know that under the current law it will not be possible to do this without an MTPL policy.
Many citizens are wondering how to re-register a car without an MTPL policy if the transaction is not made under a purchase and sale agreement, but under a general power of attorney? Everything is quite simple here. It is necessary to reissue the policy to the new owner and indicate his data in the policy. Only an employee of the insurance company can do this.
To enter data about a new driver into the company you need to provide:
- OSAGO policy;
- passport of the new car owner;
- the rights of the person whose data must be included in the insurance.
What is the penalty for refusing insurance?
For failure to comply with the terms of the current law, the driver faces a fine. For driving a vehicle without a policy, a person can lose 800 rubles. In addition, if the car is not registered within 10 days after its purchase, then the driver will face a fine of 5,000 rubles for the lack of state registration plates. Thus, the prospects for lawbreakers are not very pleasant.
Therefore, if anyone still doubts whether insurance is needed when re-registering a car, then it must be said once again that without an MTPL policy, no one will register a car with the traffic police.
Is it possible or not?
Currently, many citizens are worried that issuing an MTPL insurance policy takes a lot of time. In fact, this is not true. In addition, you can even obtain auto liability insurance online. This service is suitable for those citizens who live in settlements where there is no office of a suitable insurance company. Many people do this now. Unfortunately, not all insurance companies currently provide services for issuing MTPL policies via the Internet.
Bottom line
When registering a car with the traffic police, you must follow the norms of the current law. In addition, I would like to say once again that insurance for a purchased used car must be taken out in advance. Otherwise, registration of the car with the traffic police will be denied.
If someone is still wondering whether it is possible to get insurance after re-registration of a car, then we need to say again that you need to prepare a compulsory motor liability insurance policy in advance. Otherwise, you will need to come to the traffic police with the entire package of documents one more time.
The compulsory health insurance policy belongs to the category of registered documents. It contains all the personal data of the insured person. If they change, it is necessary to initiate measures to correct the information entered into the insurance company’s database, and, as a consequence, into the policy. Regulatory sources regulate the time frame within which the insured person must notify of the need to reissue the policy. In case of violations, the citizen may be denied medical care provided at the expense of the insurance company. When does it become necessary to reissue a compulsory medical insurance policy? What is the procedure for re-issuing a policy? What documents may be needed for this? We will answer these questions in this article.
When should the policy be renewed?
A citizen’s personal information can be changed under certain circumstances. They are usually associated with receiving a new document. The identifying information may be changed or left the same, but changes must be made to the insurance company's database in any case. The circumstances that cause the policy to be reissued are always associated with the irrelevance of the information reflected in the document. If it is lost or damaged, a duplicate will be issued. The document cannot be replaced in case of life changes such as a change of residence within the same region or a change of job. Thus, the grounds for the re-registration procedure are:
- Changing a citizen’s identifying data regarding his last name, first name, patronymic, gender, date and place of birth;
- Obtaining a new identity document;
- Identification of inaccuracies in the document associated with errors in its execution.
In case of changes in the information data reflected in the insurance document or identification of inaccuracies in them, the insured person is obliged to notify the insurance company within a month from the date of the occurrence of the event or detection of errors. After notification, it is necessary to reissue the policy. Special cases of document re-issuance are discussed in the following articles:
What happens if you don’t renew your policy in a timely manner?
If the insurance policy is not reissued in a timely manner, its owner will be denied medical care. Regulatory and legal sources provide citizens in such a situation with a month’s period to prepare new documents. During this period, they can count on receiving free medical services under a temporary policy. It is worth noting that violation of deadlines is not grounds for the accrual of penalties. The citizen is simply deprived of the opportunity to be treated at the expense of the insurance company.
Grounds for issuing a duplicate
A duplicate is issued if the insurance document cannot be used. The reason for this may be dilapidation, fading of the text, tears in the document or the loss of its individual parts, loss. The procedure for obtaining a duplicate is similar to the procedure for re-issuing an insurance document. The algorithm of actions for the owner of the insurance document in both situations is identical.
The number of each policy is entered into the electronic database. This makes it possible to receive services using just one number and an identity document. This data is enough for the clinic to issue an invoice to the insurance company for the services provided to the patient. Therefore, if you lose your policy, you can receive free medical care without providing it, however, it is recommended to quickly issue a duplicate document.
How to reissue a policy or get a duplicate of it?
To reissue a policy or express a desire to receive a duplicate of it, you should notify the insurance company of the need to carry out the event. The procedure is carried out on the basis of an application from the policy owner. It must reflect a request to perform specific actions with the insurance document, with a detailed justification of the reason for the request. Copies of the following documents must be attached to the application:
- Identification of the applicant - passport for adults and birth certificate for children under 14 years of age;
- Evidence of assignment of an individual account number for participation in the insurance pension system;
- Confirming changes in personal data.
In case of renewal of the policy, after submitting an application with a set of necessary documentation justifying the action, the original document is confiscated for cancellation. Instead, a temporary policy is issued, valid for 30 days. It can be provided in medical institutions to receive free medical care. If the reason for reissuing a policy is a change in personal information, then it is important to justify the need for the event. To do this, documents confirming the relevant changes should be attached to the standard package of documents:
- A marriage certificate indicating the change of the woman’s surname to the husband’s surname;
- A certificate of divorce, which is the basis for returning the woman to her maiden name;
- Certificate of change of name;
- Passport, which reflects changes in personal information;
- Policy with erroneously entered data.
The registration of the procedure for changing information in the policy due to objective reasons or for obtaining a duplicate can be carried out personally by the owner of the document or his representative. If the policy belongs to a child, then the operation will be handled by his legal representatives, who may be parents or persons authorized to perform such actions. In such a situation, the algorithm of actions does not change, but the list of documents should include the passport of the child’s representative.
If the owner of a policy subject to renewal for any reason cannot personally submit documents to the insurance company, then he has the right to issue a power of attorney for representation. The law does not contain information about the need for notarization of a document. It is assumed that it can be executed by the guarantor himself. However, in order to avoid misunderstandings with representatives of the insurance company, it is recommended to resort to the services of a notary. When submitting documents, the representative will need to provide an identification document that confirms his right to act on behalf of the guarantor.
Conclusion
A timely procedure for bringing personal identification documents into compliance with a medical insurance policy will allow its owner to avoid many problems associated with denial of free services in medical institutions. The re-registration procedure is not complicated; you just need to contact the insurance company and provide the necessary documentation.
Today, transactions involving the purchase and sale of a car and renewal of insurance are not uncommon. The current legislation has simplified the situation with concluding contracts for car owners.
Now there is no need for official confirmation of the authenticity of the document by a notary. The entire procedure is carried out between two citizens, the seller and the buyer. But, in this case, what should be done with the MTPL policy when the owner changes?
Is there a need to reissue the policy?
First of all, it is necessary to understand the true purpose of insurance.
The policy is mandatory for all drivers and insures their civil liability, that is, it is issued not for the car, but directly for its owner.
When driving a vehicle is carried out not only by the owner of the car, then all citizens who have access to the control must be included in the insurance. Also, it can be unlimited, then any drivers can be allowed to drive. The difference between such insurance will be its higher cost.
It follows that when selling a vehicle, its previous owner must contact the insurer to make all the required changes.
The same applies to the buyer, that is, the new owner of the car. Since the details will be changed, he will need to meet with the insurance agent.
The need to perform these actions is prescribed in legislative acts. And it informs citizens that the owner of the car is obliged to notify the company with which the insurance contract is concluded about any changes, including a change of owner.
Now it’s worth figuring out what is the best way to reissue the policy to the new owner.
Methods for reissuing a policy
What can be done in this situation:
- reissue the policy to the new owner;
- return part of the insurance premium upon sale of the vehicle;
- re-register OSAGO for another car;
- The new owner is added to the current policy if the car is sold under a general power of attorney.
The nuances associated with selling a car may be different. Therefore, the resolution of situations with compulsory motor liability insurance, in each case, will be individual.
Add a new driver to your insurance policy
This situation may arise when a car is sold under a general power of attorney. And the previous owner will agree that the new owner will use his insurance. Then you need to contact the insurance company and your agent and make the appropriate changes -.
It is also possible to draw up an additional agreement under which the new owner of the car will be able to reimburse the cost of insurance that will not be used.
This decision would be appropriate if the previous owner of the car does not plan to buy a new car and take out an insurance policy for it.
To calculate the amount of compensation for unused insurance time, you need to divide the total premium amount by the number of days of insurance. Having found out the insurance amount for one day, multiply it by the number of unused days.
It is the amount received that the new owner will have to pay to the seller in order to use the current policy until the end of the insurance period. And then, act at your own discretion: renew your insurance with your previous insurer, or use the services of another company.
Terminate the contract
In the event that the new owner does not want to pay financial compensation for the remaining insurance period, the agreement can be terminated, and the previous owner will receive monetary compensation for the unused days of the insurance period. Such cases occur when the new owner wants to enter into an insurance contract with another company.
When there is a change in the owner of the car, a sales contract is provided to the insurance company, this fact is recorded, and the applicant can count on payment of compensation.
But upon termination of the current contract, the insurance company will retain a certain percentage of the penalty, usually this amount reaches 20%.
Therefore, it will be more profitable to re-execute the existing agreement or make changes to it. This option is suitable for those who are going to use another car after selling theirs.
Renewal of insurance
Before contacting the insurer, you must prepare the required package of documents, namely:
- applicant's passport;
- all documentation for the car (technical passport, registration certificate);
- car maintenance ticket;
- a vehicle driving license for the new car owner, as well as all possible drivers;
- a previously valid policy, when the re-registration procedure is carried out, the compulsory motor liability insurance of the previous owner is required;
- company documents, required when the policyholder is a legal entity;
- a completed application for re-registration (the required form is issued by the insurance agent).
When all the documents are ready, you need to sign a new agreement with the insurer and pay the insurance premium.
When the registration is completed, the applicant receives:
- MTPL policy with company details and signatures.
- European protocol in two copies.
- Memo.
- A receipt indicating payment.
Sometimes applicants are faced with a problem when the insurer simply refuses to reissue the document, especially if the applicant does not want to use additional services.
In this case, of course, it would make sense to look for another company that provides such services. Of course, it is possible to influence the agent using legal methods, and he will be forced to renew the agreement. But it’s worth thinking about whether you would want to cooperate with such a company in the future.
What if the car is transferred to the control of another person due to family ties?
Many people are hearing for the first time that it is necessary to re-register compulsory motor liability insurance when the owner changes. There are several ways for an owner to transfer insurance rights to the buyer of a vehicle.
general information
With the help of compulsory motor liability insurance, the driver primarily protects himself. Even if he is at fault, the insurance company pays all damages to the injured party. Here it is worth noting several disadvantages of the policy.
Firstly, insurance has fixed payment amounts, so it is not profitable if the victim in an accident is the owner of an expensive car. Secondly, the policy owner (if he is at fault) will have to repair his vehicle himself.
As for the cost of MTPL insurance, it depends on:
- type of vehicle;
- region;
- client's driving experience.
OSAGO insurance is quite profitable. In addition, all activities of companies offering such a policy are carried out in accordance with the law. However, if the car changes owner, you must inform the insurer about this.
Even with an open list of possible drivers, when selling or donating a car, it is necessary to make some changes to the policy. That is, a change of owner is the reason why the policy is invalid. And in the event of an accident, the new owner will no longer be able to obtain insurance. By making changes to the document, the seller transfers all of his insurance rights to another person.
Methods
Transfer of policy
Changes to the MTPL policy must be made by mutual agreement. Before the sale of the car, the parties must enter into an agreement in which the buyer undertakes to pay compensation to the seller for the time when he will not use the policy.
The amount is calculated by the buyer and seller. For this, the following formula is most often used - the amount of the insurance premium is divided by the period of insurance (when the owner used it) and multiplied by the number of days when the insurance will not be used. For example, the deposit amount is 6 thousand rubles, and the period of use is 90 days. It turns out that 6000:90*275= 4520 rubles of compensation.
In addition, the agreement must be executed by a notary. A separate contract may not be concluded if the clause on the transfer of insurance rights is specified in the purchase and sale agreement. After selling the vehicle, the parties contact the insurance company and carry out the procedure for entering information about the new owner.
Termination of an agreement
If the buyer refuses to pay compensation and does not intend to reissue the insurance to himself, the seller must terminate the contract with the insurance company. Then the owner of the vehicle can also receive compensation payments, but from the insurer. But to do this, you must provide a car purchase and sale agreement on the day of conclusion.
Re-registration to another car
This method is used extremely rarely, since it requires two cars insured by the same company. Then the insurance from the sold car can be transferred to another. This re-registration allows for significant savings.
Where to contact
To make changes to the MTPL policy or reissue insurance, the owner can contact his insurance company directly. In addition, there are organizations that renew insurance when selling a vehicle. These are, for example, Rosgosstrakh, Alliance, etc. The services of such companies are paid separately.
Documentation
In order to re-register compulsory motor liability insurance when the owner changes, the parties will need certain documents. These include:
- statement;
- purchase and sale agreement (copy);
- car registration certificate (copy);
- insurance;
- receipts confirming payment for insurance.
There is no need to have these documents certified by a notary. Technical documentation for a car is of little interest to insurers in this situation. The main thing is to have insurance and prove that you paid for it.
Important! If the parties have drawn up an agreement on the payment of compensation, then this should also be provided.
Re-registration procedure
The stages of the procedure differ depending on the result that the parties to the transaction want to obtain. If we are talking about termination of an insurance contract:
- The owner of the car writes an application for termination of the document.
- Then provides the necessary package of documents.
- Insurance company employees cancel the insurance contract.
- After this, the owner receives compensation.
When terminating an insurance contract, various hiccups often occur. Insurance company employees may try to stall for time by asking for additional documents. You should know that the company must pay compensation two weeks after termination of the contract.
And if all the deadlines have passed and the money has not been received, it is necessary to find out the reason. If company employees refuse to provide information regarding payment, you need to contact management. As a last resort, you can file a lawsuit, but to do this you need to collect evidence that the insurance company is breaking the law.
When entering information about the new owner into the insurance policy, you must:
- Draw up a compensation agreement.
- The buyer of the car needs to fill out an application to include it in the policy.
- Submit documents to the insurance company (the presence of both parties to the purchase and sale is mandatory).
You should know that when compensation is paid by the insurance company, about 20–30% of the cost of insurance is deducted from the owner.
Refund of insurance premium
By terminating a contract with an insurance company, the client loses a certain amount. But if the car is sold, you can terminate the agreement without maximum losses. If, after the sale and purchase, the client purchases a new car, compensation payments can be used as the first payments for the new insurance. In this case, insurance companies accommodate clients halfway and do not calculate the entire amount as a commission.
Renewing an MTPL policy when the current owner changes is quite simple. But first you need to decide which method to choose. Many decide to simply terminate the contract, while others sign in the buyer of the car. The main thing is that the re-registration is carried out on a voluntary basis.