Can Car Insurance Be Transferred to a New Owner in 2025?

Transferring car insurance ownership in 2025 involves new regulations across the UAE, Saudi Arabia, and Egypt. This guide explains essential procedures, highlights common mistakes, and offers practical recommendations tailored to Middle Eastern drivers' unique needs.

Understanding Car Insurance Transfer in Middle Eastern Markets

In 2025, transferring car insurance varies significantly among Middle Eastern countries. While UAE regulations favor seamless digital processes, Saudi Arabia emphasizes comprehensive policy renewal, and Egypt offers partial premium refunds for sellers.

Legal Framework Across Key Countries (2025 Update)

• UAE: Insurance transfer must be completed within 14 days after ownership change to avoid penalties. Digital platforms such as Dubai’s RTA app streamline this process significantly.

• Saudi Arabia: No insurance transfer allowed; buyers must purchase a new policy. This rule helps maintain policy clarity but increases initial ownership costs.

• Egypt: Sellers can reclaim a partial refund, calculated based on the remaining policy duration. However, insurance cannot be transferred for vehicles older than 20 years.

Climate Considerations for Policy Transfer

Middle Eastern climate significantly impacts insurance policy coverage:

For instance, in Riyadh or Dubai, sandstorm coverage is essential given frequent sandstorms during seasonal shifts, safeguarding against paint damage or windshield replacements, which can cost up to SAR 1,200/AED 1,180 per incident.

Step-by-Step Transfer Process for 2025

UAE's Digital Transfer System

1. Submit an electronic ownership certificate via RTA app.

2. Pay a transfer fee of AED 320 plus 5% VAT (total approx. AED 336).

3. Receive an updated policy digitally within 2 working hours.

For example, transferring a Toyota Land Cruiser policy in Abu Dhabi can be completed swiftly via mobile devices, reducing downtime.

Saudi Arabia's Tamm Platform Procedure

• Prepare the required documents:

  • Original Istimara (vehicle registration)

  • National IDs of both buyer and seller

  • Valid mechanical inspection certificate (Fahas)

• Purchase a fresh insurance policy, often starting around SAR 1,200 annually for a typical family sedan.

Egyptian Insurance Special Cases

• Vehicles older than 20 years are ineligible for insurance transfer.

• Premium refunds follow the 65% rule:

  Refund = (Remaining Days/365) × Annual Premium × 0.65 ​

For example, if 200 days remain on a Hyundai Elantra policy with an annual premium of EGP 4,500, the seller's refund will be approximately EGP 1,602.

Common Mistakes to Avoid

To ensure a smooth transition, Middle Eastern drivers must avoid common pitfalls:

1. Attempting transfers after recent accident claims: Insurance claims must be fully settled to avoid legal complications.

2. Neglecting mandatory cooling system checks: High desert temperatures frequently cause radiator issues; insurers often require proof of inspection.

3. Forgetting comprehensive coverage updates: Critical areas include:

   • Agency repair agreements (important for premium brands like Lexus or BMW in Dubai)

   • Rental car clauses (especially relevant in Saudi Arabia’s expansive road networks)

   • Roadside assistance packages (highly recommended for family users in Egypt)

2025 Policy Transfer Options Comparison

Expert Recommendations for Smooth Transfer

• Validate Buyer’s License: Confirm license validity through:

  • UAE: Ministry of Interior digital platform

  • KSA: Absher online portal

  • Egypt: Traffic Department official website

• Insurance History Reports: Always request previous insurance claims history to prevent unexpected liabilities.

• Extended Liability Coverage: Particularly useful during transition phases, costing around AED 300/SAR 310 annually, but providing crucial legal protection.

Frequently Asked Questions (2025 Edition)

Q: Can comprehensive car insurance be transferred between family members?

• UAE: Yes, but limited to spouse, parents, and children only.

• Saudi Arabia: Transfer is prohibited; family members must obtain new coverage.

• Egypt: No transfers permitted, even among close family members.

Q: What documentation is needed for insurance transfer of modified vehicles in GCC countries?

Transferring insurance for modified vehicles requires:

• Certified documentation of all modifications.

• Police approval confirming the vehicle’s safety standards.

• A revised insured value statement reflecting modifications, crucial for accurate claim settlements.

Q: Are there late fees for insurance transfers?

Penalties vary significantly by country:

Q: How does transferring insurance affect hybrid or electric vehicles?

In countries like UAE, battery warranties for hybrid/electric vehicles must be transferred separately via the dealership. Insurance policies typically do not include battery warranty coverage, thus requiring separate attention.

Q: Can insurance be transferred during Ramadan or Eid promotional periods?

Yes, Ramadan and Eid often feature insurance promotional offers. For instance, Dubai-based insurers frequently waive transfer fees or provide discounted roadside assistance during Ramadan. Always inquire about seasonal promotions, potentially saving up to AED 250/SAR 255.

This comprehensive guide ensures Middle Eastern vehicle owners confidently navigate the 2025 insurance transfer landscape, addressing varied needs from performance enthusiasts to safety-focused families.