Steps to transfer car insurance when selling a car in UAE

A proper car insurance transfer not only ensures legal compliance but also protects both buyer and seller from future liabilities, claim rejections, and administrative complications.

This guide discusses all one needs to understand regarding the transfer of car insurance in the UAE, from why it matters to step by step and document requirements.

Why Car Insurance Transfer Matters in the UAE

When a vehicle is sold, the insurance must be modified to cover the new owner. UAE law mandates all vehicles on the roads to be insured, and driving a vehicle registered in another person's name without appropriate insurance may get the car penalized or lead to policy cancellation. In addition, when there is an accident during the period that the ownership has passed but not the insurance, the claimant may have their claim rejected by the provider.

A car insurance transfer also ensures the buyer continues to have any remaining period of cover, and the seller can officially terminate liability for the vehicle.

Step-by-Step UAE Car Insurance Transfer Guide

Transferring car insurance is a simple process but requires coordination between the buyer, seller, and insurer. The following is an informative guide to the normal process:

1. Notify Your Insurance Company

The seller should inform the insurer of his or her desire to sell the car. This is usually done by making a call to customer care or visiting the branch office of the insurer. This has to be done before finalizing the sale because the insurance company has to sanction the transfer process.

2. Request for a No Claims Certificate (where necessary)

If the seller has a claim-free record, he or she can request a No Claims Certificate (NOC) from the insurance company. This can help get lower premiums for the new vehicle and serves as a good record of safe driving.

3. Provide Buyer Details

The buyer will have to give the insurance company personal and automobile-related documents. These are normally:

Emirates ID

Driving license

Vehicle registration card (Mulkiya)

Current insurance policy details

4. Check and Approve the Transfer by Insurance Company

Once the documents are submitted, the insurance company will approve the buyer's qualification and vehicle status. They will also assess risk indicators like age of the buyer, driving record, and nationality.

5. Payment of Transfer Fee

UAE insurance firms usually charge a small administration fee to transfer policies. It ranges from AED 50 to AED 200 depending on the company.

6. Policy Re-Issued with New Owner's Name

After payment and approval, the policy is re-issued with the name of the new owner. The buyer is issued a new insurance certificate, and cover continues under the initial conditions unless otherwise specified.

7. Finalize Vehicle Ownership Transfer

After obtaining insurance cover, the buyer can proceed to complete the transfer of car ownership at the relevant RTA or traffic department office.

Car Insurance Transfer Documents

The seller and buyer will both require the following documents in order to make the transfer:

Emirates ID (for both)

UAE valid driving license (for buyer)

Original Mulkiya vehicle registration card

Evidence of current insurance policy in written form

Sale contract or proof of transfer of ownership

Vehicle inspection report (where applicable)

Insurers may also request the purchaser to perform a brief vehicle check to ensure the condition and suitability of the car for coverage.

Can Car Insurance Be Transferred to Any Purchaser?

Mostly, car insurance can be transferred to the purchaser with ease. There are exceptions, however:

If the purchaser is less than 25 years old, the insurer may modify premiums or require additional documentation.

If the buyer has a poor driving history, the insurance company can decline transfer or offer a new policy.

Some insurers will not accept policy transfers between non-relatives and may recommend cancellation with new policy issuance instead.

Always request the insurer to confirm these conditions in advance.

Tips for a Seamless Car Insurance Transfer

Start the process before the handover of keys in order to avoid driving without insurance cover.

Take documents, if required, in the presence of both parties.

Hold copies of documents and communications for future use.

Use insurance companies with online or app-based policy management to simplify the process.

Conclusion

Transfer of car insurance is a critical but often overlooked part of car sale in the UAE. Successful transfer of car insurance ensures legal compliance, protecting the interests of both the buyers and sellers and enabling the transfer of ownership. If you understand the process and have all the right documents prepared, you can go through the process smoothly without any unpleasant surprises.

For a hassle-free insurance experience for car buying or selling, attempt to deal with insurers with digital transfers of policy, transparent price, and one-to-one support.