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.<\/p>\n
In Dubai, in order to transfer the car, you should have insurance for at least 7 months<\/strong>, but ideally you should have insurance for 13 months<\/strong> so you can enjoy a full year with the registration transfer.<\/p>\n 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\u2019s name.<\/p>\n 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<\/strong>.<\/p>\n 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.<\/p>\n 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.<\/p>\nIf Insurance Transfer Is Allowed<\/h3>\n
If Insurance Transfer Is Not Allowed<\/h3>\n
For Buyers<\/h3>\n
Insurance Cancellation and Refund Process<\/h3>\n