Can You Transfer Your Car Insurance to a New Owner in Dubai?

Car Insurance

You have just sold your car in Dubai, and the new owner is excited to hit the road. However, then comes the inevitable question: “What about the insurance?” This is where many people get stuck. Can you simply transfer your current policy to them? Or do they need to start from scratch? The answer isn’t always straightforward, and misunderstanding it can lead to delays, penalties, or even driving without valid insurance.

This is why we are here about all the information on how you can transfer the best car insurance in Dubai to a new owner. Let’s clear the confusion, so you know exactly what to do.

Is Car Insurance Transferable in Dubai?

Yes, you can transfer your car insurance to a new owner, but it comes with conditions. Insurance companies in the UAE operate under guidelines from the Roads and Transport Authority (RTA) and the UAE Central Bank (Insurance Authority), and they allow policy transfers, but both you and the buyer must meet certain criteria.

You can think of it as a “hand-over” process, where your policy is essentially reassigned to the new owner, provided they are eligible and the insurer approves.

When You Might Want to Transfer Instead of Cancel?

You might think: why shouldn’t you just cancel the policy and let the buyer get a new one? Sometimes, a transfer is faster and more cost-effective, especially if:

• The insurance has several months left on it.
• The buyer wants the same coverage you have.
• You are selling to a family member or friend.
• The insurer offers a smooth transfer process with minimal fees.

However, sometimes, if the buyer has a bad driving record or the insurer’s rates are too high, it may be better to get a new policy.

The Basic Transfer Process

Here’s what the general process looks like for transferring the best car insurance in Dubai:

• Inform Your Insurer: You will need to notify your insurance provider about the sale and request a transfer.
• Buyer’s Eligibility Check: The insurance company will assess the buyer’s profile and analyze things like age, driving history, etc.
• Required Documents: Both parties must provide documents such as Emirates ID, driving license, vehicle registration, and proof of sale.
• Approval and Endorsement: If approved, the insurer will issue an endorsement transferring the policy.
• RTA Upgrade: The change will be reflected in the RTA system when the car’s registration is transferred.

To make things simpler, here’s a quick reference table on the insurance transfer essentials:

Important Points to Remember

Here are some important points to remember as far as the transfer of ownership of the insurance is considered:

 Not All Policies Are Transferable

Some insurers simply don’t allow transfers to a new owner, particularly if the policy type or coverage level doesn’t match the buyer’s risk profile. Always check your policy terms before assuming it’s possible to transfer the policy.

The Buyer Must Qualify

Even if your insurer is open to transferring the policy, the buyer must pass their eligibility checks. For example, if the buyer is under 25 and your policy has a low-risk rating, the insurer might either reject the transfer or adjust the premium.

Prorated Premium Adjustments

When the policy is transferred, the insurer might recalculate the premium based on the remaining term and the buyer’s profile. If the premium goes up, the buyer will pay the difference.

When a Refund Might Be Better Than a Transfer

If the buyer doesn’t want your policy or can’t qualify, you can cancel your insurance after the sale. Insurers refund the unused portion of your premium (pro-rate), without the cancellation fee, and this way the buyer can purchase a policy that suits their needs.

Tips for a Smooth Transfer

Here are some tips for a seamless transfer of your insurance ownership:

• Check with your insurer early: Don’t wait until the day of ownership transfer.
• Gather all documents: Get all the documents in advance because missing paperwork can delay the process.
• Be transparent with the buyer: Let the buyer know the transfer terms and any extra costs.
• Coordinate with the RTA: The insurance transfer and car registration update must align with the RTA rules, so coordinate with that too.

Final Thoughts

Transferring your car insurance to a new owner in Dubai is possible, but it depends on your insurer’s policies, the buyer’s eligibility, and how both parties coordinate with the RTA. If the buyer wants the same coverage and qualifies, a transfer can save time and money. Otherwise, cancelling your policy and getting a refund might be the smarter choice. For more details or information about the transfer, feel free to reach out to our team at New India Assurance Co. Ltd today! 

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