What happens to civil liability insurance after the sale of a car? Is it possible to extend the policy? Here is a short guide that will guide you step by step through the formal issues.

Every registered vehicle must have civil liability insurance (OC). According to the Polish law, the car is sold together with a third party insurance policy. The new owner may keep the existing policy or choose to sign a contract with another insurance company.

Buyer and third party liability policy

If you buy a car that has a valid third party insurance policy, you can stay with the current insurance policy or decide to terminate the third party insurance agreement and sign it with another insurance company. If you decide to continue with your policy, it is a good idea to contact your insurance company to see if the previous owner of your vehicle has paid all the insurance instalments. If it turns out that the premium (or part of it) has not been paid, the person selling the car is obliged to pay the premium for the protection period up to the day of the sale of the vehicle. For the protection period after the signing of the purchase contract, the instalment should be paid by the purchaser of the car.

Note: the third party liability insurance taken over from the previous owner does not automatically extend for another year.

Please note that the insurance company may recalculate the price of the policy. If the previous car owner had high discounts and the new car owner is a young and inexperienced driver, the insurance price can significantly go up. In such a situation, the conclusion of a contract with another insurance company may prove to be a much better solution.

If you, as a buyer, decide to change your policy, you are obliged to terminate the current insurance policy. You should do it in writing. The notice of termination must reach the insurance company no later than 30 days after the date of sale of the vehicle.

Obligations of a car seller

If you have sold your car, you must inform your insurance company.

In the worst case, the insurance will be automatically extended for another year, and you will have to pay the insurance premium for a car you do not have. Explaining this can be troublesome and time-consuming.

You have exactly 14 days from the date of signing the contract to notify the insurance company about the sale of the car and the new data of the policy owner.

How to terminate the civil liability insurance agreement?

In order to terminate the civil liability insurance contract, you must:

- download, print and complete the notice of termination document;

- deliver the completed document to the insurer by post, e-mail or go to the facility in person.

Some insurance companies do not honour the termination of a contract by e-mail. It may therefore happen that the driver, convinced that he has terminated the contract, will receive a call for payment of the outstanding premium after a few months. Before you terminate your civil liability insurance contract, you must check your insurer's terms and conditions.

Reimbursement of premium to the seller

When the seller of the car terminates the third party liability agreement, the insurance company settles with him by returning the premium for the unused period. It is worth knowing that you are entitled to a refund only if the insurance company has not paid or is not obliged to pay compensation for damages covered by this policy.

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