There’s a whole host of reasons why you might be looking to cancel your car insurance policy in the UAE. Before we explore these a little further, there’s one important thing to consider: it’s illegal to drive a car here unless it’s insured. In fact, it’s a requirement that must be fulfilled before registration of the vehicle, let alone taking it on the road.
However, that doesn’t mean that a car insurance policy can never be cancelled. They can, of course, and you’ll be pleased to hear that the process is relatively easy. Follow the steps and you’ll be fine.
Why You Might Cancel Your Car Insurance Policy in Dubai and the UAE
There are several situations that might trigger you to cancel your car insurance. These include:
- You’re selling your vehicle
- You’re leaving the UAE and looking to export it
- You’ve decided to stop driving whilst in Dubai and the UAE and rely on public transport
- You’ve decided to find an insurance option that you consider more suitable
All of these are valid reasons for cancellation, however, just be aware of the potential pitfalls in cancelling your car insurance policy as they may have an impact on you if you intend on still being a motorist in the UAE now or indeed in the future.
Check Any Relevant Contracts
If your car is subject to auto finance, check the small print carefully. Many car loans or auto financing agreements whether from a bank, finance house or via a dealership, insist on you having a fully Comprehensive car insurance policy until you’ve fully settled your finance debt and finished all the repayments. Cancelling your car insurance policy before clearing your finance could render you in breach of contract, leading to repossession of the vehicle or legal action, so be sure to keep your insurance in place.
Consider Your Premiums
Staying loyal to one insurer by maintaining the same policy each year can build up a loyalty discount. This can prove valuable as it builds year on year if you maintain a no or low claims record. Conversely, frequent car insurance cancellation and switching of insurers could be costly as you’ll be seen as a higher risk category, so it’s worth bearing in mind the longer-term if you plan on staying, and driving, in the UAE for a while.
How To Cancel Your Policy
If cancelling your current car insurance policy to replace it with a new one, you’ll need to submit a few documents to your insurer to effect the process. Typically, these include:
- Your passport, including residence visa copy
- Emirates ID (front and back sides)
- Copy of the Vehicle Registration Document
- Copy of your Driver’s Licence
- Confirmation that your vehicle is GCC approved
- Details of any claims you’ve reported and/or made (this will be checked against the insurer’s own records)
Traditionally, insurance would need to be cancelled in person at a branch of the insurance company or the broker’s offices, but conveniently, online options have developed whereby you can process a car insurance cancellation by scanning and sending your documents electronically.
Leaving Town, Don’t Leave Your Driving Record!
If you’re leaving the UAE and returning home, or even moving somewhere else, don’t forget to obtain proof of your driving history for the period you were driving in Dubai or elsewhere in the emirates. If you’re looking to drive in another country, you’ll be taking out a fresh car insurance policy overseas and answering questions on your driving history. Don’t start from zero: most insurers will take into consideration your previous driving history so ask your current insurer for a confirmed claims/certificate of driving experience as proof and you might just get a decent discount!