Difference between new, renewal and transfer insurance

Wanting to better understand the difference between new insurance, renewal and insurance transfer? Then follow this article.

For many people, the world of insurance is still a mystery, and understanding the differences between new insurance, renewal and insurance transfer can be much more complicated than you imagine.

If you also have this difficulty and want to know more about the subject, follow this article and understand better.

Understand the difference between the three modalities

To make it easier to understand the subject, it is interesting that each of the modalities is explained separately.

New insurance

New insurance is the first service contracted by a person who wants to protect their vehicle. It is evaluated according to the customer's initial profile, the condition of the car and other related aspects.

Insurance renewal

Vehicle insurance is renewed when a policy has already been taken out and is about to expire, following SUSEP rules. For this to be done, there is no need to be driving the same vehicle, it is absolutely possible to make changes to the service provision contract, such as marital status, address, etc.

Insurance transfer

The transfer of vehicle insurance occurs when a customer, for specific reasons, decides to transfer their insurance to another person. It is worth mentioning that this modality is not very common, much less accepted by all insurance companies.

Now that the three modalities have been explained, it is much easier to understand the difference between them:

• New Insurance is simply the first purchase of the service;
• Insurance renewal is when the term of the policy is coming to an end, and the client decides to renew it;
• And the transfer happens when a client needs to transfer insurance to another person.