Buying a new car will indeed bring a wave of enjoyment and lots of excitement to many people in the UAE. However, we are all aware of the fact that the country is known for its strict rules, which every car owner must remember. Car insurance is an obligatory act in Dubai, and every car owner, whether a brand new or a used car, must have insurance to cover it.
Whether you are planning to sell, or purchase a second-hand car, meeting the insurance requirement is mandatory, and also a very convenient process. There are many questions as a car owner that you must be going through, especially related to car transfer, and even can car insurance be transferred to a new owner.
A clear understanding of all this procedure is most crucial, especially to reach smooth and crisp operations for both parties. If you have such questions revolving in your head, this blog is just for you, let us find out more about car insurance in UAE.
Can Car Insurance Be Transferred in Dubai?
Car insurance is mandatory for all vehicle owners in Dubai and across all other Emirates. There is a certain specific insurance requirement that needs to be met to fulfil your role as a car owner in Dubai. No matter whether you are buying or selling the car, what happens with your insurance must be understood well, and all the legal requirements should be fulfilled.
To streamline this process, the government has made it easier for sellers to provide fully transferable car insurance in the UAE from one owner to another. However, you have to consider the fact that the transfer depends on all the terms that are outlined by your insurance provider.
Each of the specifications of your contract defines whether you can transfer complete ownership or not. Not every insurance policy needs to be transferred from the previous owner to the new one. So, make sure you do your research well on that, and read your insurance carefully.
Steps to Transferring Your Car Insurance in Dubai to a New Owner
Contacting the insurance company: The first step is to get in touch with your insurance company. Make sure you inform them that the vehicle has been sold to a new customer and that the insurance policy will be transferred too, to the new owner.
Provide Information: The insurance company will require a certain set of information for the transfer of insurance from one party to another. Information such as their full name, contact details, and Emirates ID can be a crucial element in the transfers. Whether you have cheaper car insurance in UAE; or expensive, both have the same procedure.
Submit Documentation: The insurance company will ask for crucial documents such as the bill of sale, as well as the ownership transfer certificate. Even the RTA registration card of the vehicle is important to be submitted to the company.
- No Objection Certificate from the previous owner
- Document or any Certificate of existing insurance policy
- Car inspection report
- Registration certificate
- A filled application for
- Emirates ID or a valid Passport
- Buyer’s driving licence
Updating the Policy: Once the car insurance company in Dubai has all the information, and documents, they will proceed by updating the policy. It will reflect the new owner’s information, to keep the record fresh and updated. You will be requested to visit the insurance company with the other party to settle all the issues.
Payments: If in case the policy is not yet renewed, or expired, the new owner will be responsible for taking care of that. They will proceed by paying the remaining premium for the policy, because of their ownership.
Collecting the Updated Policy: Once the policy is updated, the new owner will be responsible for collecting the updated policy document. Along with the policy documents, they will also be responsible for the collection of insurance cards, and registration cards from the car insurance company in Dubai.
What about the No Claim Bonus?
No claim bonuses are usually provided by insurance companies to car owners who have not claimed any insurance during the specific period. This can be considered as an additional benefit that is offered to the car owner for not using any insurance. This benefit however is targeted at the owner of the car who has applied for the insurance, and thus it can not be transferred to the new owner. These are non transferable benefits, and they can not be given from one person to another. So, you can avail the benefit of it, or you can leave it since there is no use of this to the new owner.
Peace of Mind
Knowing that your car insurance is correctly transferred to the new owner is no less than peace of mind. Since the car is no longer in your name, any damage, accident or any other factor related to the car will not come under your name. Therefore, to secure your position, both buyer and seller must take care of the insurance process in the first place.
Insurance is a safety zone, and it should not be avoided at any cost, you do not want to take the blame for something you haven’t done. Once the car is handed over to someone, all the problems and benefits of it should be handed over as well. So, for the peace of your mind, make sure you do this and feel empty-headed.
Car Insurance in Dubai
Not everyone can afford to buy a new car. So when it comes to buying or selling a used car, it comes in handy, affordable, and in your budget too. The first thing you know as a buyer or seller of a used car in Dubai is to give transfers of everything. Now you are fully aware that car insurance can be transferred to a new owner in Dubai. Make sure you follow it and all the steps mentioned above for a streamlined process.
