In the UAE, it is illegal to drive a car that is not insured. All vehicles must be insured before they can become registered and driven. But that doesn’t mean you can’t cancel your current policy. In fact, most insurance companies in the UAE make this process fairly simple

Cancellation of a vehicle’s insurance could be due to exporting it or selling it. But is often the result of the owner simply finding a more suitable insurance option.

However, there are potential pitfalls to be aware of when cancelling your car insurance policy.

You Might be in Breach of Contract

Many car financing agreements require the prospective owner to maintain a comprehensive car insurance policy until they have fully paid for their vehicle. You may be required to use a particular insurance company’s policy for this. If you cancelled this policy before paying the full amount owed, you would be breaching the terms of your financing agreement. It’s important to keep these kinds of contracts in place at least until the car is fully paid off, to ensure that you keep the vehicle.

It Could Affect Your Premiums

Maintaining a single insurance policy and keeping claims to a minimum builds a low insurance risk profile over time. Most insurers will take this into account and reward low-risk customers with lowered premiums over the years.

On the other hand, frequent cancellation of policies might put you into a higher risk category, resulting in increased premiums. It’s a good idea to weigh this information up against the potential benefits of cancelling your car insurance policy in favour of a new one.

What Documents Are Required for Cancelling Your Car Insurance Policy?

Cancelling your current insurance in order to issue a new car insurance policy will require you to submit several documents. These include:

• Passport with visa page, or an Emirates ID
• Vehicle documents containing relevant details- these include make, model and year of manufacture
• Copy of vehicle registration
• Copy of your driver's license
• Confirmation that your vehicle is GCC (Gulf Cooperation Council) approved
• Details of all registered claims (if any).

This can be conveniently done online, where electronic copies of the relevant documents will be required for submission.

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