Selling a car and third party liability insurance is an important issue, both for the seller and the buyer of the vehicle. What are the obligations of the parties to the sales contract when transferring ownership of a vehicle? Is it possible to return an overpaid liability insurance premium? You will find out when you read this article.
It is always the responsibility of the current owner to ensure that the vehicle has a valid liability insurance policy. If in doubt, check the validity of the policy with the Insurance Guarantee Fund before buying a car.
If you drive a car without third party liability insurance, you will get a high fine in the event of a police check. Even more problems are caused by the participation of such a vehicle in a collision or road accident. Therefore, selling a car and liability insurance is an important issue and it is worth getting to know it better.
Car sales and insurance. What do the rules say about the policy?
In the case of sale, the current owner of the vehicle is obliged to hand over the third party liability insurance document to the buyer, together with the car, registration document and vehicle card.
The policy is given to the new car owner. The previous owner’s liability insurance is valid until the expiry of the contract. If the premium is paid in installments, the policy is valid until the due date of the next installment.
Importantly, in the event of a collision or accident, the damage is recorded in the name of the new owner, even if the previous owner’s details are on the policy.
Vehicle sale and valid OC. What is worth knowing?
The seller should inform the insurer that the vehicle has been sold. Otherwise, the OC contract will automatically be extended for another settlement period.
The insurance company will have the right to demand payment from both the previous owner of the vehicle and the new owner of the car.
In turn, the buyer may (but does not have to) waive the liability insurance policy and conclude a new insurance contract with another insurer. This is an advantageous solution when an experienced driver with no accidents history buys a car from a young driver who does not yet have no-claims discounts.
When do I have to report the sale of a car to the insurer?
The seller should inform the insurer of the change of ownership within 14 days of the sale of the vehicle. The easiest way to do this is to call the helpline number or write an e-mail to the insurance company. The date of sale of the car and the details of the buyer should be provided.
In the meantime, the buyer decides whether to keep the seller’s current liability insurance. It is possible that the insurer will recalculate the amount of the policy and ask him to pay the premium. If the buyer of the car decides to conclude a new third party liability insurance contract, he submits a written notice of termination of the policy at any time.
In what cases can you get a refund of the OC premium?
Are you selling a car whose policy will be valid for many more months? Do you want to recover liability insurance for the unused period of insurance? You can do it in 2 ways:
- If the buyer of the car warns you that they will keep the policy, add the cost to the price of the car.
- If the buyer submits a notice of termination of the policy, then ask the insurer for a refund of the premium for unused insurance. You have every right to do so, and you will receive a refund by bank transfer to the specified bank account.
Are you buying a car and want to conclude an advantageous liability insurance policy? Check the validity of the policy and the premium amount on the OC policy. Call the insurer’s helpline and ask if you will have to pay an additional premium and in what amount.
Then use the insurance comparison engine and find the best insurance offer for you. Compare it with the terms you have on your current contract. If the seller of the car is young and has only recently entered into third party liability insurance, it will be better for you to conclude a new contract.
