How to Transfer Car Insurance in Ksa After Buying a Used Car
Car insurance transfer in KSA is one of those topics that sounds simple, but the reality is different. In Saudi Arabia, you usually do not take over the seller’s insurance policy. What actually happens is that you arrange insurance for the car under your own details, then you complete the ownership transfer, and the seller cancels their old policy and claims any refund for the unused period.
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What people mean by transfer and what actually happens
Most people say transfer because they assume the insurance moves from the seller to the buyer with the car.
In practice, the seller’s policy stays tied to the seller and their policy contract. The buyer typically needs a new policy for the vehicle, under the buyer’s details, so the ownership transfer can go through smoothly and the car shows as insured after the sale.
What needs to be ready before you start the Absher sale
Absher is the official platform used for Vehicle Sales and ownership transfer between individuals.
Before you try to transfer ownership, make sure these basics are handled because Absher lists conditions that can block the process
- Valid vehicle insurance policy
Absher lists having a valid insurance policy as one of the conditions for vehicle ownership transfer. - Valid periodic inspection, if required
Absher lists a valid technical inspection certificate as a condition. - No blocking issues on the buyer or the car
Absher lists that there must be no violations logged against the buyer or the vehicle. - Government fee
Absher’s vehicle ownership transfer conditions page mentions a government fee of SAR 150 paid through SADAD.
The practical step by step that usually works
Step 1 Decide who will arrange the buyer’s insurance before the transfer
If you are the buyer, plan to arrange your own insurance for the car. This is why people in Saudi call it ownership transfer insurance, because the new owner needs coverage in place around the transfer rather than inheriting the old policy.
Step 2 Complete the ownership transfer through Absher Vehicle Sales
Absher’s Vehicle Sales service is designed to let individuals sell private vehicles and transfer ownership electronically after completing the required procedures.
Step 3 After the transfer, confirm the insurance is showing as valid
Absher offers a public e service called Public Query Vehicle Insurance Validity that lets citizens and residents check insurance validity without visiting offices. Use it right after the sale to confirm the vehicle is showing as insured.
What happens to the seller’s policy and refund basics
After the sale, the seller usually cancels their old policy with their insurer.
Refund rules depend on the insurer’s terms, but the basic pattern is that the insurer refunds the remaining unused period once the insurer processes the cancellation. One Saudi insurer cancellation page describes that an alternative policy covering the remaining term may be required and that the due amount for the uncovered period is refunded to the bank account using IBAN within three working days from when the insurer becomes aware of the relevant information.
What you should do as the buyer
Do not pay expecting the seller’s policy to be yours.
Make sure you have your own active policy and that the vehicle shows as insured using the Absher validity check after the transfer.
What the seller should do
Contact the insurer to cancel and request the refund based on their policy terms and required documents, including IBAN, once the sale is complete.
Common problems and quick fixes
- Absher will not complete the transfer because insurance is not valid
Fix arrange insurance for the vehicle so it shows as valid, then retry the transfer. Absher lists valid insurance as a condition. - Everything is done but the insurance status does not show correctly
Fix use the Absher insurance validity inquiry to verify what the system shows. If it still shows wrong, contact your insurer and provide the vehicle details so they can confirm the policy is linked correctly. - Seller thinks they must transfer their policy
Fix explain that the buyer typically gets a new policy, and the seller cancels theirs and claims the unused refund based on insurer rules.
A simple timeline you can expect
- Before the sale
Buyer arranges insurance that can be linked to the car for ownership transfer purposes. - Sale day
Ownership transfer is completed through Absher Vehicle Sales once conditions are met. - Right after the transfer
Buyer checks insurance validity using Absher’s public inquiry service. - After the sale
Seller requests cancellation and refund from their insurer under their policy rules.
