Selling your car in the UAE comes with more than just handing over the keys—your car insurance cannot simply move with the vehicle unless certain legal conditions are met. Many sellers and buyers are surprised to learn that UAE traffic laws, insurer rules, and policy limitations determine whether a motor insurance policy can be transferred, cancelled, or reissued. Understanding these rules helps you avoid fines, rejected claims, or delays during ownership transfer at the RTA. In this guide, we break down exactly when car insurance can be transferred to a new owner, what documents are required, and the steps you must follow to stay compliant and protect both parties during the sale.
Transfer Basics Under UAE Law
In most Emirates, insurance follows the vehicle, not the person, but only with insurer approval. Policyholders must submit a transfer request within 14 days of sale, providing the buyer’s Emirates ID, driving licence and the original policy document. Failing to do so voids coverage and exposes both parties to fines.
Required Documents
- Original registration card (Mulkiya) with sale endorsement
- Valid vehicle inspection report
- Buyer’s Emirates ID copy
- Proof of no pending claim
Steps for a Smooth Transfer
- Notify Insurer – Call or email your provider immediately after signing the sale agreement.
- Submit Documents – Upload required files via the insurer’s portal or visit a branch.
- Pay Transfer Fee – Typically AED 100–150, covering administrative costs and updated certificates.
- Receive Endorsement – The insurer issues a new schedule in the buyer’s name.
- insurancehub.ae recommends completing steps 1–3 before handing over keys to ensure continuous coverage.
When Transfer Is Not Allowed
Some insurers prohibit transfer if:
- The buyer is under 25 with less than one year’s licence history.
- The car value exceeds AED 500,000 and the buyer lacks “high-net-worth” approval.
- The policy has less than 30 days until renewal.
In these cases, the seller must cancel the policy and request a pro-rated refund. The buyer then purchases fresh cover.
Cancellation vs Transfer: Cost Comparison
| Scenario | Refund to Seller | Cost to Buyer | Administrative Fee |
|---|---|---|---|
| Transfer 3 months remaining | AED 0 | AED 0 (policy continues) | AED 120 |
| Cancellation 3 months remaining | AED 600 refund (est.) | New premium AED 2,000 | AED 75 cancellation |
Impact on No-Claims Discount
The no-claims discount belongs to the individual driver. When you transfer a policy, the new owner starts at zero years NCD, while the seller retains their accumulated years for the next car.
Conclusion
Can car insurance be transferred to new owner after sale? The answer is generally yes, provided you act quickly and meet insurer conditions. Use insurancehub.ae to compare transfer policies, understand fees and ensure both parties drive away protected.
