What doing with automobile liability insurance policy when selling a car?

What to do with automobile liability insurance policy when selling a car?

The Law of Ukraine "On mandatory insurance of civil - liability of vehicle owners" indicates the reasons for which may be terminated by automobile liability insurance policy (Article 18, 19).

Party Liability (along with a sticker), on which no payments are provided to the insurance company. Filled application for cancellation of the policy, the insurer shall pay the balance of the insurance payment.

Consider an example. We sell a car, automobile liability insurance policy cost - 777.60 UAH. per year (365 days). Policy purchased by 08.03.2011. Dissolve - 27.07.2011. Motor Third operated 142 days.

Balance is:

777.60 * (365 -142) / 365 = 475.08 USD.

In this case, the insurance company according to Article 18, paragraph 2 of the Law of Ukraine "On mandatory insurance of civil - liability of vehicle owners" holds standard cost of doing business 20%.

475.08 * 0.2 = 95.02 USD.

The Customer shall pay

475,08-95,02 = 380.06 USD.

To leave the company 20% to buy a new car and make credit balance of $ 475.08 USD. to the new policy. At the same time pay the difference between the residual value and the new automobile liability insurance.

Also, do not agree to buy the old owner, along with his car autocitizen as the sale of auto insurance policy is converted to a regular piece of paper. The responsibility of the new owner is not insured on it, and the old owner did not get the rest of payment.

After removing the car from the account when driving at the time the policy number remains in effect with regard to the insured vehicle. Automobile liability insurance policy expires at the conclusion of the contract - the sale.