Car Insurance Transfer in the UAE

When a vehicle is sold in the UAE, the existing motor insurance policy does not automatically transfer from the seller to the new owner. The buyer normally needs to arrange a new motor insurance policy in their own name before completing the vehicle ownership and registration process.

The seller should inform the insurance company about the ownership transfer. The insurer will advise whether the existing policy should be cancelled or otherwise updated and whether any premium refund may apply under the policy terms.

Can Car Insurance Be Transferred to a New Owner?

A car insurance policy is issued based on the insured owner, authorised drivers, vehicle details, usage and underwriting information. For this reason, the existing policy is not simply transferred to the buyer when the vehicle is sold.

The new owner should request a separate insurance quotation and obtain a new comprehensive or third-party liability policy in their own name. Coverage remains subject to vehicle eligibility, underwriting approval, policy terms and exclusions.

Steps to Arrange Insurance During Vehicle Ownership Transfer:

Follow these steps when buying or selling a vehicle:

1. Inform the Insurance Company: The seller should notify the insurer that the vehicle is being sold and request guidance regarding the existing policy.
2. Request a New Insurance Quotation: The buyer should provide their personal, driving and vehicle information to obtain a new motor insurance quotation.
3. Select the Coverage: The buyer can select comprehensive or third-party liability insurance depending on the vehicle and coverage requirements.
4. Submit the Required Documents: Provide the buyer's identification, driving licence, vehicle documents and ownership-transfer information.
5. Complete Underwriting: The insurer will review the buyer, vehicle, usage and insurance details before confirming the coverage.
6. Pay the New Policy Premium: The buyer must pay the applicable premium for the new motor insurance policy.
7. Receive the New Policy: The buyer will receive the policy issued in their name after the application and payment are completed successfully.
8. Complete the Ownership Transfer: Use the new insurance details when completing the vehicle ownership and registration process with the relevant traffic authority.

Documents Required for Car Insurance and Ownership Transfer:

The buyer may need the following documents:

1. Buyer’s Emirates ID
2. Valid UAE driving licence
3. Passport and residence visa copy, if required
4. Current vehicle registration card
5. Vehicle ownership transfer or sale documents
6. Vehicle inspection certificate, if required
7. Vehicle make, model, year, chassis number and registration details
8. Previous insurance or no-claims certificate, if available
9. Additional documents requested during underwriting

What Happens to the Seller’s Existing Insurance Policy?

The seller should discuss the following points with the insurance company:

1. Policy Cancellation: The insurer may process the policy cancellation after receiving acceptable evidence that the vehicle ownership has been transferred.
2. Supporting Documents: The insurer may request the ownership-transfer certificate, vehicle registration details and other documents.
3. Premium Refund: Any refund of the unused premium will depend on the policy terms, coverage period, claims history and applicable cancellation conditions.
4. No-Claims Certificate: The seller may request evidence of their previous insurance or claims history where available.
5. New Vehicle Insurance: If the seller purchases another vehicle, a separate quotation and policy may be required for the new vehicle.

Important Points Before Transferring Vehicle Ownership:

Review the following before completing the transaction:

1. Do Not Assume the Existing Policy Is Valid: The buyer should not drive the vehicle based only on the seller’s policy.
2. Arrange Insurance in the Buyer’s Name: The new policy should contain the correct owner, driver and vehicle details.
3. Check the Policy Start Date: Make sure the new coverage becomes effective when required for the ownership and registration process.
4. Verify All Information: Incorrect ownership, driver, vehicle or usage information may affect the policy or an insurance claim.
5. Review the Coverage: Check the premium, excess, repair arrangement, coverage limits, exclusions and optional benefits before completing the purchase.

Why Choose Al Buhaira Insurance for Car Insurance?

Here are some reasons to consider Al Buhaira Insurance:

1. Comprehensive Car Insurance: May cover accidental damage to the insured vehicle, third-party liability, theft, fire and other insured risks, subject to the policy terms.
2. Third-Party Liability Insurance: Covers legal liability for injury or damage caused to another person, vehicle or property.
3. Online Motor Insurance Quotation: Buyers can enter their personal and vehicle details to begin a motor insurance quotation online.
4. Policy Support: A dedicated team is available to assist with quotations, documentation, policy enquiries and renewals.
5. Motor Claims Assistance: Policyholders can access support through the available motor claims channels, subject to policy terms and claim requirements.

Frequently Asked Questions: