Dubai is famous for being an expensive city to live in so if you decide to go there even as a tourist don’t go looking for cheap because you won’t find it.
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How Much Is Car Insurance In UAE ?
According to the UAE’s laws having car insurance is mandatory, and many insurance companies have opened a branch in Dubai. Although the accident rates in Dubai are low and drivers usually follow traffic laws strictly, having a car insurance policy is required and smart.
What factors influences the cost of car insurance in Dubai ?
Since the auto insurance premium you pay in Dubai highly depends on the type and price of the car you drive, we are going to break down everything insurance providers look at when calculating your car insurance rate.
1- Vehicle Registration
It may seem silly, but many insurance providers look at your vehicle registration and base your rate on that. For example, people who have their car registered in the Northern Emirates are charged with a higher premium, and vehicles registered in Dubai or Abu Dhabi get a lower premium. Why? Like how they always work with insurers, this is too because of the risk they are. There are data that shows more accidents happen in the Northern Emirates, and naturally, higher risk means a higher premium.
2- The Vehicle
Your vehicle type and its value determine how much coverage it needs. The latest models or the high-end luxury cars naturally have higher rates because they are expensive. Second-hand cars or family cars that are something practical with a middling value will have a lower premium.
There are insurance companies that provide competitive quotes, policies, and prices for either luxury car insurance or average car insurance.
3- The Vehicles Value
Car insurance rates range from 1.75% to 4% in the UAE. The rate goes up according to the value of the vehicle. Therefore, the lower the value of your car, the lower the premium. So, make sure the value of your vehicle is budget-friendly.
4- Purpose of Vehicle
For what purpose you’re going to use your vehicle? Using your car for personal purposes, pay lower premiums. The cars that are used for hire or commercial purposes have to pay a higher premium because of the risk and the fact that the driver keeps changing.
5- Driving License
Some countries’ driving licenses are easily convertible to UAE licenses without a driving test; most insurance companies give some of these driving licenses a significantly lower premium because they assume that the drivers are responsible behind the wheel and have enough experience.
6- Drivers Nationality
Similar to the rule related to driving licenses, insurance companies hold a bias against certain nationalities. They believe and have proof that certain nationalities have been involved in accidents more than others.
7- Age
Much like regular auto insurance, your age plays an important role in your car insurance premium. Drivers under the age of 25 and over 60 have to pay a higher vehicle insurance premium.
8- No-Claims Certificate
We mentioned that car insurance is mandatory by law in Dubai, no-claims certificates are also mandatory by law, and it’s a great benefit to the policyholder. If your claims history is clean and you haven’t filed any claims, then you are awarded the No-Claims certificate. This certificate can get you a substantial discount on your premium.
What types of insurance are available ?
We recommend you choose comprehensive insurance, but it is your choice. You can stick with the obligatory third-party liability insurance:
Third-party liability insurance
This insurance covers the other car involved and its passengers only. You, your passengers, or your vehicle will not be insured under this policy. But it is the cheaper option.
Comprehensive insurance
Comprehensive car insurance provides payment for everyone involved in an incident on the road and the following incidents:
- Fire
- Explosions
- Theft
- Vandalism
Although, this insurance is quite costly.
Additional add-on coverage options
In Dubai, you can also get some add-ons on your policy for caution. Some of the most popular extra coverages include:
1- Roadside Assistance
With this coverage, you can get towing service or a mechanic wherever you needed in the UAE.
2- GCC Coverage
If you travel to the neighboring GCC nations a lot, then this is the add-on coverage for you. In fact, some the countries such as Oman, Saudi Arabia, Qatar, Kuwait, and Bahrain will not even allow you to enter until you have valid GCC insurance.
3- Medical Expenses
This will pay for the medical expenses of the drivers or passengers within twenty-four hours of an accident to a specified limit.
4- Personal Belongings Cover
It covers for the damage or loss of your personal belongings, such as a mobile phone or laptop, as long as it was kept in the insured vehicle.
5- Off-Road Coverage
It covers damage or loss of the vehicle while you are driving off-road.
6- Fire & Theft Coverage
It covers damage to the vehicle or, in some cases, the loss of your car in a theft attempt or fire.
