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Friday, March 29, 2024

Is it necessary to reissue an insurance policy when buying a car: a lawyer answered

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Recently, FACTS published an explanation from a lawyer about an important nuance regarding car insurance. The next publication also concerns insurance. Usually, when buying a car from a new owner, the question immediately arises whether you need to take out a new insurance policy for yourself. lawyer Alexander Golovchenko.

There are three ways to obtain an insurance policy when changing the car owner.

1. Transfer of the insurance policy to the new owner – it will take effect before the expiration date.

When selling a car, the owner can transfer the insurance policy to the buyer free of charge or for a fee (as agreed by the parties).

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In this case, the auto insurance applies to all drivers of the car, so the insurance policy continues to be valid even after the re-registration of ownership of the car until the expiration date.

This is explained by the fact that it is not the owner who is insured, but the vehicle itself (Article 20-1 of the Law of Ukraine “On compulsory insurance of civil liability of owners of land vehicles”).

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2. The former owner transfers funds to obtain a new car title for another car. In this case, the former owner of the vehicle must contact his insurance company to terminate the current contract and transfer the remaining funds to issue a new policy for another car. Termination of the current contract occurs simultaneously with the conclusion of a new one.

3. There is also a way when the former owner returns the remaining funds from the termination of the car insurance contract.

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“If the former owner sells the car but does not intend to buy a new one, or already has an insurance policy, he can contact his insurance company and cancel the insurance contract. In this case, the remaining funds are returned to him. There will be no refund if insurance payments were made during the policy period.”

Let us remind you about “unpleasant surprises”, because in 2024 a number of changes will apply to Ukrainian drivers.

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Author: Victoria MIKYTYUK, “FACTS”

Source: Fakty

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