You bought a used car in Poland that is already registered in the country, and you want to know what happens to the seller’s liability insurance policy. Does it remain with the car, does it expire, or do you need to renew it? The answer comes from Poland The Compulsory Insurance Act (ustawa o ubezpieczeniach obowiązkowych). This refers to the mandatory civil liability insurance policy for vehicle owners (OC for motor vehicle owners); hereinafter, we will simply refer to it as the «OC policy.» This article explains what the law says about the buyer and the seller, as well as the deadlines that apply after the transaction.
The rights and obligations under the contract are transferred to you
If you have become the owner of a vehicle whose owner has entered into an OC contract, you the rights and obligations of the previous owner are transferred, arising from this contract (Article 31(1) of the Law on Mandatory Insurance).
In this case, the term of the contract is not automatically extended. The contract terminates upon the expiration of the term for which it was entered into, unless you terminate it in writing. The rules regarding automatic contract renewal (Article 28 of the Compulsory Insurance Act) do not apply in this case (Article 31, Part 1).
How to Cancel a Seller's Policy
The law allows the buyer to terminate the contract by written notice (wypowiedzenie) (Article 31, Part 1). The contract terminates on the date specified in the notice of termination, or, if no date is specified, on the date of termination (z dniem wypowiedzenia). That date may not be earlier than the date on which the notice was filed.
A sample «Cancellation of a Liability Insurance Policy» form and a sample vehicle purchase agreement are available on the page downloads. The sales contract in Polish and the Polish-German version are also available on the page sales contracts.
If you have terminated the contract in the situation described above, you are required to enter into a new OC agreement no later than the day the terminated agreement expires (Article 31, Part 6).
What happens if the contract isn't terminated?
If you have not canceled the contract, the insurance company (zakład ubezpieczeń) can recalculate the insurance premium (składka) Starting from the date of transfer of ownership of the vehicle. The calculation takes into account the discounts to which you are entitled as the new owner and any surcharges that apply to you under the current rate schedule (Article 31, Part 2).
If you submit a request for a recalculation yourself, the insurance company is required to recalculate the premium for the period beginning on the date of transfer of ownership. To facilitate this recalculation, the buyer is required to disclose to the insurance company all circumstances known to him that are necessary for the calculation (Article 31, Part 2).
The detailed terms of the contract with a specific insurance company are described in its documents, including in General Insurance Terms and Conditions (General Insurance Terms and Conditions, GITC). A consultant can help you compare these documents.
A car that wasn't insured under the previous owner's policy
The law also provides for another situation: a vehicle is registered, but its owner has failed to obtain mandatory liability insurance, in violation of the law. In that case, the buyer to whom ownership has been transferred, is required to enter into an OC agreement on the date of transfer of ownership, but no later than the moment the vehicle begins to move (Article 31, Part 3).
A new OC contract is required both after the seller's policy has been canceled and in cases where there was no policy to begin with. You can estimate its cost using the form on the page car insurance calculator: In the form, you need to enter the vehicle registration number and your PESEL number, then click the "Calculate Premium" button; the form is designed to estimate the cost of OC and AC insurance. There is also a separate page about mandatory OC insurance at civil liability insurance.
What the seller is required to do
An owner who has transferred ownership of a vehicle is required to do two things (Article 32, Section 1 of the Law on Compulsory Insurance):
- send you confirmation of the OC contract;
- notify the insurance company in writing within 14 days as of the date of transfer of ownership, confirming that ownership has been transferred and providing your information.
The notice must include the first name, last name, residential address, and PESEL number, if assigned, or the name, registered office (siedziba), and REGON number (Article 32, paragraph 2). Under the same article, the consequences of causing damage after the date of transfer of ownership are not the seller's responsibility (Article 32, Part 3).
Who is responsible for the insurance premium?
The buyer is liable to the insurance company for payment of the premium due for the period from the date on which ownership was transferred to him (Article 32, Part 4).
The seller is responsible jointly with the buyer for the premium for the period from the date of transfer of ownership to the date on which the insurer was notified of the sale and provided with the buyer’s information (Article 32, Parts 4 and 1).
Post-Purchase Procedures: Registration and the Village Head
The Road Traffic Act (Prawo o ruchu drogowym) requires vehicle owners to file an application for its registration within 30 days from the date of purchase of the vehicle in Poland (Article 73aa, Section 1, Subsection 1).
The same law also imposes obligations on the previous owner. In the event of a transfer of ownership of a registered vehicle, he transfers the registration certificate to the new owner (registration certificate), as well as a certificate confirming that a technical inspection has been performed (certificate of technical inspection), if the certificate does not specify the current validity period of the technical inspection (Article 78, Part 1).
In addition, the owner of a vehicle registered in Poland is required to notify the village head (starosta) of the sale within 30 days (Art. 78, Part 2, para. 1). An individual must submit a notification to the village head at their place of residence or temporary residence (Art. 78, Part 2a).
Frequently Asked Questions
Is the buyer required to cancel the previous owner's policy?
No, the law does not impose such an obligation. If the buyer does not terminate the contract in writing, the contract will expire at the end of the term for which the seller entered into it (Article 31, Part 1). In such a case, the insurance company may recalculate the premium to reflect the new owner’s discounts and surcharges (Part 2).
By when must the seller report the sale?
To the insurance company—in writing, within 14 days from the date of transfer of ownership (Article 32, Part 1 of the Law on Compulsory Insurance). To the village head—within a period not exceeding 30 days (Article 78, Part 2 of the Road Traffic Law).
Who is responsible for the premium during the period before the seller notifies the insurance company?
Both parties are liable for this period: the buyer, as the new owner, and the seller, jointly and severally with the buyer, until the day the seller notified the insurance company of the sale (Article 32, Part 4).
How long do I have to register a car I've purchased?
The Road Traffic Act stipulates that an application for registration must be filed within 30 days of purchasing the vehicle in Poland (Article 73aa, Section 1, Paragraph 1). The new owner is required to file the application.
If you need a new OC policy, Polisarium's consultants can help you compare offers from insurance companies. Contact information and office addresses in Warsaw can be found on the page contacts, or by phone 534 666 111 We speak Russian.
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