Homepage

Blog

Car Insurance in UAE: A Guide for Expats and Residents

m.elhatib

July 5, 2024

0 Comments

Auto Detailing, Car News

UAE is a vibrant city with a large expat community, making car ownership essential for getting around and exploring the UAE.

Before hitting the road, it’s important to have a good understanding of car insurance in UAE.

All vehicles must have at least basic insurance to comply with the law. Failure to do so can result in significant fines and even lead to car impoundment.

Types of Car Insurance in Dubai

Two main types of car insurance in UAE are:

Minimum Requirement Third-party Liability:
- This is the fundamental coverage required by law.
- It pays for injuries and property damage caused to others in an accident for which you are responsible.
- However, it does not cover any damage to your own car or injuries sustained by yourself or your passengers.
Comprehensive Insurance:
- This provides much wider protection.
- It typically covers the repair or replacement of your car in case of accidents, theft, fire, vandalism, and natural disasters.
- Additionally, it may cover personal injuries to you and your passengers.
- Some comprehensive policies offer optional add-on covers such as roadside assistance or personal accident cover for additional peace of mind.

Factors Affecting Car Insurance Premium in UAE

Remember, when it comes to your car insurance premium, various factors come into play. These include:

Age and Driving History: Younger drivers and those with a history of accidents generally face higher premiums.
Make, Model, and Year of the Car: High-performance cars, luxury cars, and newer models tend to have higher premiums.
Location of Residence: Your location in Dubai can impact your premium, with areas having higher accident rates resulting in slightly higher costs.
Type and Level of Coverage: Comprehensive coverage will cost more than third-party liability only. Within comprehensive coverage, the level of benefits and excess (deductible) will further influence the premium.
No-Claim Discounts (NCD): Maintaining a claim-free record can lead to discounts on your premium, with the potential for greater discounts with each claim-free year.

Tips for Getting the Best Car Insurance Deal in UAE

To find the best car insurance in UAE, it’s important to invest some effort into securing the most affordable and suitable option:

Compare quotes: Refrain from settling for the initial offer you receive. Obtain quotes from various reputable insurance companies in UAE. Many of these companies offer online quote forms, streamlining the process for your convenience.
Consider online quotes: Take advantage of the convenience of receiving quotes online from numerous insurance companies in UAE. This efficient method allows you to compare prices and coverage options from multiple providers effortlessly.
Negotiate your premium: Leverage factors such as your driving record, car’s safety features, or chosen excess to potentially negotiate a lower premium.
Increase your excess (deductible): By opting for a higher excess, the amount you pay upfront before the insurance coverage activates, you could significantly lower your premium. However, it’s crucial to weigh the potential savings against your ability to cover a higher upfront cost in case of a claim.

Additional Considerations

When visiting UAE and considering renting a car, it’s important to note that most rental companies include basic third-party liability insurance in their rates.

However, depending on the length of your stay and your personal risk tolerance, it may be worth considering additional coverage.

Additionally, using a UAE-issued driver’s license can lead to lower insurance premiums compared to using an international license.

Conclusion

It’s important to keep in mind that car insurance in UAE serves as more than just a legal obligation; it’s a crucial financial safeguard in the event of an accident.

Don’t hesitate to reach out to reliable insurance providers or local UAE authorities for additional information and quotes before finalizing your decision.

Be sure to familiarize yourself with the various coverage options available, factors that influence premiums, and take the time to compare different plans.

FAQ

How much is car insurance in the UAE?

However recent surveys and analysis suggest that annual premiums for comprehensive car insurance in Dubai can range from around AED 1200 to AED 5,000. Similarly, for third party insurance coverage the average cost is approximately AED 450, to AED 1000.

Is car insurance mandatory in the UAE?

Governed by the Roads and Transport Authority (RTA), car insurance is mandatory in the United Emirates. Driving without insurance can result in a penalty of AED 500, four black points, and a seven-day vehicle retention period. Black points are demerits given for traffic violations.

How to choose car insurance in UAE?

Here is our 8-point checklist that will help you buy car insurance in UAE the smart way.
1. Roadside Assistance Cover.
2. Gulf Cooperation Council Coverage.
3. Agency Repairs Cover.
4. Off-Road Cover.
5. Does Age Matter?
6. Windscreen cover.
7. No-Claims Bonus Discount.
8. Personal Accident Cover.

How does car insurance in Dubai work?

According to the UAE RTA law, vehicle owners must have third-party liability car insurance. It is the basic form of auto insurance in Dubai since it protects against any liability caused to the third party such as bodily injuries or property damage.