How to Handle Vehicle Insurance When Selling or Buying a Used Car in Tanzania?
When people buy or sell a used car in Tanzania, they usually focus on the price, ownership transfer, and paperwork. But one thing many drivers forget is vehicle insurance. A lot of buyers wrongly believe the seller’s insurance automatically becomes theirs after the sale. That is not how it works in Tanzania.
If you drive a vehicle without valid insurance in your own name, you can face fines, problems with TRA transfer, and issues in the TMS system. Sellers can also get into trouble if they fail to report the sale properly or leave the insurance active under their name.
Before any money changes hands, both the buyer and seller should understand how car insurance works during a vehicle sale, what documents are needed, and how to avoid legal problems later. This guide explains the full process so you can sell or buy a used car in Tanzania easily.
Does the Seller Can Transfer Vehicle Insurance to the Buyer?
This is the most important thing to understand. When you buy a used car in Tanzania, the seller’s insurance policy does not become yours. It stays with the seller. Under the Motor Vehicles Insurance Act (Cap. 169), every person who drives a vehicle on a public road in Tanzania must have their own valid insurance. This means the new owner must buy a new insurance policy in their own name. The old policy from the seller does not cover the buyer.
Many buyers do not know this. They assume the existing bima ya gari carries over when they take the car. It does not. And driving without valid insurance is a traffic offence that gets recorded in the TMS system.
Why You Should Perform TMS Check Before Selling Vehicle
Check Your Insurance on TIRAMIS
Tell Your Insurance Company After the Sale
Once the sale is done, call or visit your insurance company and tell them the vehicle has been sold. This is important. If you do not inform them:
Ask your insurer whether any unused portion of your premium can be used or credited. Different insurers handle this differently, so ask them directly.
Complete the TRA Ownership Transfer
Under Section 16 of the Road Traffic Act, the seller must notify the Tanzania Revenue Authority (TRA) about the sale and apply for the ownership transfer to the buyer. Do not leave this to the buyer alone.
Until the transfer is complete, you remain the registered owner of the vehicle. If something happens with that car, your name is still on record.
What the Buyer Needs to Do Before You Purchase a Vehicle
Once you decide sell or buy a used car you must follow the steps given below:
Perform TMS Before You Pay
Buy Your Own Insurance Before You Drive
Do not drive the vehicle before you have your own insurance policy in your name. Driving without valid insurance is illegal under the Motor Vehicles Insurance Act and will get you a fine in the TMS system.
Contact a TIRA-licensed insurance company and buy a new policy. The minimum legal requirement in Tanzania is third-party insurance. This starts from around TZS 118,000 per year for private vehicles.
If you want comprehensive cover, TIRA sets minimum rates at 3.5% of the vehicle’s value for newer cars and 4% for used vehicles.
Some licensed insurers in Tanzania include Jubilee Insurance, Sanlam Tanzania, Alliance Insurance, NIC Tanzania, and Britam Tanzania. Only buy from an insurer listed on the official TIRA website at www.tira.go.tz.
Verify Your New Policy on TIRAMIS
After your insurer issues your cover note, wait up to 48 hours and then check TIRAMIS again. Search by your registration number or cover note reference number. Your new policy should appear in the system.
If it does not appear after 48 hours, call your insurer and ask them to upload the policy to TIRA. Do not drive the vehicle until your insurance shows as active on TIRAMIS.
Complete the TRA Ownership Transfer
You need to register the vehicle in your name at the Tanzania Revenue Authority (TRA). Proof of your new insurance policy is one of the required documents for this. Both you and the seller need to cooperate to get this done.
Documents Needed for the TRA Transfer
Here is what you need to bring to TRA:
The transfer fee is around TZS 50,000 for private cars, plus stamp duty and other applicable charges. The process usually takes 3 to 5 working days when all documents are correct. If anything is missing or wrong, it takes longer.
Conclusion
Vehicle insurance does not transfer automatically when a used car is sold in Tanzania. The seller must inform their insurer and work with the buyer to complete the TRA ownership transfer. The buyer must buy a new insurance policy before driving the car and verify it on TIRAMIS within 48 hours.
Both parties should check TMS at tms.tpf.go.tz for outstanding fines and TIRAMIS at tiramis.tira.go.tz for insurance status before any money changes hands. These two checks are free, fast, and can protect you from big problems down the road.
Get the TRA transfer done quickly. Until it is complete, the seller is still the registered owner. That is not a position any seller wants to be in.
