How to Transfer Car Insurance When Selling a Car in the UAE
How to Transfer Car Insurance When Selling a Car in the UAE
When selling a car in the UAE, most people focus on price negotiation, ownership transfer, and paperwork. But there's one more important task that should not be overlooked: car insurance. Whether you're upgrading to a new vehicle or leaving the country, knowing how to transfer or cancel your insurance policy is critical. It ensures legal compliance, protects you from liability, and helps the new owner get on the road without delay. In this guide, we'll explain how the car insurance transfer process works in the UAE, what documents are needed, and what options sellers and buyers should consider.
Why Transferring Car Insurance Matters
Car insurance in the UAE is tied to the vehicle, not the individual. If you sell your car and don't officially transfer or cancel your insurance policy, you could be held responsible for any incidents or claims that happen after the sale. This is not just a legal risk; it can also be a financial liability. Insurance policies typically contain clauses that limit the liability of the provider if the proper process isn't followed. According to the Roads and Transport Authority (RTA), transferring ownership of a car also requires proof of a valid insurance policy under the new owner's name. This is why managing the insurance side of the transaction is as important as handling the registration itself.
Is Insurance Transferable in the UAE?
In many cases, yes. Most insurance companies in the UAE allow for the transfer of an existing policy from the seller to the buyer, provided the new owner meets their underwriting criteria. This may include factors such as the buyer's age, driving history, type of license, and claims history. If the insurer agrees to the transfer, a fee may be charged to complete the process, and the policy will be updated with the new owner's information. If the buyer is not eligible or if the insurer does not allow for transfers, then the seller must cancel the policy, and the buyer will need to purchase a new one before registering the vehicle.
Step-by-Step: How to Transfer Car Insurance
Here's a step-by-step breakdown of how to transfer car insurance in the UAE during a sale:
- Contact your insurer: Let them know you're selling the car and want to initiate a policy transfer. Some insurers provide online forms for this, while others require you to call or visit their office.
- Submit buyer's details: You'll need to provide a copy of the buyer's Emirates ID, UAE driving license, and possibly a No Objection Certificate (NOC).
- Get approval: The insurer will review the buyer's eligibility. If approved, the insurer will issue updated policy documents under the new owner's name.
- Pay transfer fees: Some insurers charge a fee (usually modest) for processing the transfer.
- Give documents to buyer: The new owner will need the updated insurance certificate to complete vehicle registration at the RTA.
If your insurer doesn't allow for policy transfers, make sure you cancel your policy and provide the buyer with documentation confirming the cancellation. They can then get a new policy before registering the car.
Required Documents for Insurance Transfer
To successfully complete the transfer, both the seller and buyer need to provide the following documents:
- Original insurance policy document
- Car sale agreement or ownership transfer proof
- Buyer's Emirates ID and UAE driver's license
- Vehicle registration card (Mulkiya)
- Cleared traffic fines, if applicable (check via RTA website)
It's always a good idea to double-check with your insurance provider for any additional documentation specific to your case.
Can I Cancel and Get a Refund?
Yes. If the policy can't be transferred, you can cancel it and apply for a refund. Most insurers offer a pro-rated refund based on the remaining duration of the policy. However, administrative or cancellation charges might apply. To process this, submit a cancellation request along with a copy of the new registration certificate showing the change of ownership. If you're buying another car, you may also request a policy transfer to the new vehicle, which avoids losing coverage and allows you to maintain your no-claims discount.
What Buyers Should Do
If you're the buyer, don't assume the insurance comes with the car. Confirm whether the seller's policy will be transferred to your name or if you need to get a new policy. It's your responsibility to have valid insurance before registering the vehicle. Consider insurance plans on GIG Gulf to find a policy that fits your needs and budget.
Tips for a Smooth Insurance Transfer Process
- Start early: Don't leave the insurance discussion to the last minute.
- Get clarity: Confirm with your insurer about their transfer policies and timelines.
- Keep records: Save all email confirmations, receipts, and updated documents.
- Use a reliable insurer: Established providers like GIG Gulf offer transparent processes and digital support.
- Clear dues: Make sure all outstanding fines or fees are paid before starting the transfer.
Trusted Resources
Switching Cars? Stay Protected with GIG Gulf
Selling or buying a car can be a hassle, but your insurance doesn't have to be. At GIG Gulf, we offer seamless support for car insurance transfers, cancellations, and new policies. Our digital platform allows you to compare plans, get quotes, and purchase policies in minutes. Backed by a strong claims service and 70+ years of regional experience, you can trust GIG to protect your vehicle.
