When selling a car in the UAE, one of the most common questions sellers and buyers have is about insurance. Many people are unsure whether the existing insurance policy can be transferred to the buyer or if it needs to be cancelled and reissued. Since insurance rules vary from company to company, understanding how insurance works during vehicle transfer is important to avoid confusion, delays, or unexpected costs.
Insurance Requirement for Transfer
In Dubai, in order to transfer the car, you should have insurance for at least 7 months, but ideally you should have insurance for 13 months so you can enjoy a full year with the registration transfer.
If Insurance Transfer Is Allowed
Some companies allow the transfer, then the buyer does not need to pay the full premium. The buyer only needs to pay for the remaining months, and then the insurance will be reissued in the buyer’s name.
If Insurance Transfer Is Not Allowed
If the insurance company does not allow the transfer, then it is also not an issue. As per the law, once the car is transferred, the seller needs to apply for an insurance refund. The seller will get a refund for each remaining month if the remaining period is more than 6 months.
For Buyers
If you are buying a car, whatever insurance is there fully depends on the insurance company, whether they allow insurance transfer from seller to buyer or not. If the insurance company does not allow transfer, then the buyer will take new insurance in their own name and register the car in accordance with the new insurane.
Insurance Cancellation and Refund Process
After the car is transferred, the seller has to submit the new registration card (of the current owner/buyer) to the insurance provider along with the bank IBAN certificate. Once this is done, the insurance will be cancelled and the refund will be received for the remaining period.
To know more about insurance cancellation and refund click here.
Insurance transfer during car selling in the UAE completely depends on the insurance company’s policy. Some companies allow transfer to the buyer, while others require cancellation and refund to the seller. It is important to check whether the insurance is transferable before completing the vehicle transfer. If transfer is allowed, the buyer only pays for the remaining period; if not, the seller can cancel the policy and receive a refund for the unused months, subject to the minimum remaining period. Understanding this process in advance helps both the seller and buyer avoid delays and ensures a smooth and legally compliant vehicle transfer.
Can I transfer my car insurance to the buyer in the UAE?
Some insurance companies allow transfer and extension of insurance to the buyer, while others do not. It completely depends on the insurance provider’s policy.
What happens if the insurance company does not allow transfer to the buyer?
If transfer is not allowed, the buyer must take new insurance on their name, and the seller can apply for an insurance refund for the remaining period.