If you want to transfer your insurance to your new vehicle or if you want to transfer your car insurance to a possible buyer. Find out how in this blog!
Changing our vehicles regularly is common these days. Whilst getting a new car is exciting, the prospect of paperwork and administration can be daunting and of course, there’s the concern when you sell your car completely rather than replacing it, that you’ll lose the money you spent on your insurance. No matter why you are asking this question, one thing you can be sure of is that not being able to transfer an insurance policy doesn’t necessarily mean it is going to be money down the drain.
Now let’s get to leaving no question of yours unanswered on our mission to be your “go-to source” for everything insurance. We first need to point out that to answer correctly, we need to respond to two different questions.
First: Transferring insurance between owners
When it comes to transferring insurance between owners there are some points to consider:
- Is your car insurance valid for more than nine months?
- Does your insurance provider provide an insurance transfer facility?
- And does the new owner match the insurance provider eligibility criteria?
If you have your answers about these questions or want to know more about transferring insurance between owners visit our blog: Can a car insurance policy be transferred to a new owner if the vehicle is getting sold?
Second: Transferring insurance between vehicles
In the world of insurance, whilst there is always common ground and standardisation which we could call “black and white”, there is also a lot of grey in areas or issues that would be up to the individual or unique terms and approval of each insurance provider. That would apply to whether you are allowed to transfer your current cover to your new car.
One important fact to consider is that insurance premiums are calculated on a number of factors but in the case of Motor or car insurance the two main ones are the details relating to the driver and the vehicle. So if the value of your new vehicle is higher, the make/model is superior or the specification is greater, that will generate an increase in the price of the policy and you will be required to pay the difference. . You may also decide you need a higher level of cover from the standard options and this too would generally see a premium increase. Lastly, your Insurer may charge an administration fee for making the transfer: this should be clearly explained to you and is usually related to their need to update systems and issue you with new documentation.
Given that the UAE legislation makes it possible to get a refund on your policy (Content Suggestion: click here to know how much you can refund on your insurance policy) it might be more convenient to just cancel your policy and take out a new one, although this is not generally encouraged.
We advise you to always check with your insurance provider or better still, contact us at InsuranceMarket.ae: our friendly Advisors are here to help and we’d love to answer any questions you might have. Happy motoring!