Changing the policyholder for a car insurance policy – for many car owners, this seems like a closed book. But don’t worry, this article explains everything you need to know about it simply and clearly.
What exactly does “Car Insurance Policyholder Change” mean?
Imagine Mr. Miller sells his beloved car to Ms. Schmidt. For Ms. Schmidt to be allowed to drive the car, she must, of course, also take out car insurance. This is where the policyholder change comes into play: Mr. Miller is no longer the policyholder, but Ms. Schmidt is. Quite simple, isn’t it?
Why is a Policyholder Change so important?
In the heat of the moment when buying a car, many people forget the formalities, but changing the policyholder is essential. If you drive without valid insurance coverage, you risk not only high penalties but also your insurance protection in the event of a claim.
Imagine this: Mr. Miller forgets to carry out the policyholder change after selling his car to Ms. Schmidt. If Ms. Schmidt now drives off the road with the car, the insurance company could refuse payment – a nightmare for both parties!
How does the Policyholder Change work?
Don’t worry, changing the policyholder is not rocket science. You only need:
- The previous owner’s insurance policy: Here you will find all important information about the existing insurance.
- The vehicle registration: This serves to identify the vehicle.
- An authorization for automatic payments (e.g., bank details): This allows the insurance premium to be conveniently debited.
With these documents, contact the previous owner’s insurance company and apply for the policyholder change. The insurance company will then explain all further steps to you.
Essential documents for changing car insurance policy
What costs are incurred with a Policyholder Change?
The good news: In most cases, changing the policyholder is free of charge. However, some insurance companies may charge a small processing fee. It’s best to inquire directly with the insurance company to avoid unpleasant surprises.
What happens to the No-Claims Class?
The no-claims class (often called no-claims bonus or discount class) is an important factor in determining the amount of the insurance premium. When changing the policyholder, this can be transferred to the new policyholder – but be careful: This is not always automatic and depends on various factors, such as the relationship between the old and new policyholder.
Are there alternatives to a Policyholder Change?
Sometimes it makes more sense to take out a new car insurance policy instead of changing the policyholder. This is the case, for example, if the new policyholder gets a lower premium with another insurance company or needs special coverage.
Further important information about the Policyholder Change
- The policyholder change should be done promptly after purchasing the vehicle.
- Inform the insurance company about changes to your personal details, e.g., your address.
- Read the insurance terms and conditions carefully to be informed about your coverage.
Conclusion
Changing the policyholder is an important step when buying a car and should not be taken lightly. However, with the right information and a little preparation, the change is straightforward and quick to complete.
Do you still have questions about changing your car insurance policyholder? Our expert team at autorepairaid.com is happy to assist you.
Mechanic advising customer in auto repair shop
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