Apr 30, 2025 - 2 min read
Selling your car in the UAE doesn’t mean forfeiting the unused portion of your insurance. Here’s what you need to know to claim any eligible refund:
- Obtain the Buyer’s Registration Card / Transfer Certificate / Possession Certificate
Once the sale is complete, take a clear photo of the new registration card issued, or the transfer certificate, or the possession certificate in the buyer’s name, simply to show that you’re no longer owner of that vehicle. Insurers require this as proof of transfer before processing your cancellation and refund. - Understand the 13-Month Policy Structure
UAE motor insurance policies typically run for 13 months, 12 months to cover your registration renewal cycle plus one extra month as a grace period. If you sell your car before the policy term ends, you may be eligible for a refund of the unused months, provided the remaining period exceeds six months. - Calculate Your Refund
To estimate your refund, divide your total premium by 12. For example, on a 2,000 AED annual policy, each month costs roughly 166.67 AED. If you have seven months left, your basic refund would be 7 × 166.67 = 1,166.69 AED. Keep in mind that insurers may deduct processing or service fees before issuing the final refund. - Submit Your Cancellation Request
Contact your insurance provider with:- A copy of the buyer’s registration card
- Your original policy documents
- A written request to cancel and refund the policy
- Receive Your Refund
After verification, the insurer will process the refund, usually crediting it back to your original payment method within a few weeks.
Selling your car doesn’t mean losing out on your insurance premium. By following these steps, you can reclaim the value of the unused coverage and move forward with confidence.