Premiums can be affected when a loss is transferred to a new owner, depending on the context and the type of insurance involved. In auto insurance, for instance, if a vehicle is sold, the claims history (or losses) associated with that vehicle may impact the new owner’s premiums if the insurance is transferred. Insurers assess risk based on historical data, so a vehicle’s claim history could contribute to how premiums are calculated for a new owner.
For home or property insurance, if a property with an existing claim history is sold, the new owner’s premium might reflect these past issues, especially if the insurer considers the property riskier due to prior claims. It’s important for new owners to inquire about any past claims and understand how they may affect insurance costs.
However, specific impacts can vary significantly by policy, insurer practices, and jurisdiction, so it’s advisable for new owners to discuss these details with their insurer to understand how a loss transfer might influence premiums.
