🚗 UAE Car Insurance explained
- Kacper Duda
- Mar 25
- 3 min read
If you listen to the radio at least once a month, you'll likely be familiar with Alfred and his car insurance adverts. While we're not looking to get the jingle stuck in your head on repeat, we do believe that getting a good deal on your car insurance is important.
Getting car insurance seemed easier back home, but faced with UAE road and local insurance terms adds a level of complexity. Read on to find out:
Local insurance terminology and what it means
In the news (and on topic): "Early 2025 insurance premiums up by 15-20% compared to a year ago." Another reason to look for a better deal at your next renewal.
Car insurance and why costs vary
Car insurance is a legal requirement to be able to drive a car in the UAE and it must at least provide third-party liability cover.
The costs of car insurance can vary significantly and depend on:
The car make, model and age
How long you've had a UAE driving license, whether it's claim-free and your age
Comprehensive vs. third-party only coverage
Agency or non-agency repairs of damage to your car
Any add-ons you choose (e.g. roadside assistance, replacement vehicle, other GCC countries)
Who can drive your car?
Unlike in some countries, the insurance is mostly attached to the car (not the person) and your policy will dictate who else can drive your car.
Unless your policy has specific exclusions (it's important you check those!), anyone with a UAE driving license will be covered. For your visitors, they will have to be first-degree relatives and hold a valid license from the UAE-approved country list or an International Driving License.
Comprehensive vs. third-party insurance
Third-party liability insurance is the legal minimum requirement to have if you want to drive in the UAE. Premiums are quite low but in the event of an accident where you're at fault, the damage to your car will not be covered.
Comprehensive insurance includes third-party liability but also covers you for any damage to your car (whether you're at fault or not). This option is more expensive but provides appropriate coverage if you value your vehicle.
Agency or non-agency repairs?
This aspect of your insurance dictates where your car will be repaired in case of damage:
Agency repairs means your car will be repaired by your manufacturer's authorised service centre. They will use original parts only and although the repair times might be longer, it provides peace of mind on the quality of the repairs.
Non-agency repairs are carried out in the insurer's approved network of garages. You can ask the insurer for their current list to review the quality of the garages and decide accordingly. In this case, it's possible that parts other than original will be used for the repair though they are meant to be of the same standard as original.
Agency repairs will always provide you with higher quality repairs, but bear in mind that insurance options with agency repairs can be double the price of non-agency.
Where to find the best quotes
As always, it's best to shop around for the best quotes. You usually have 3 options available to you:
Insurance arranged through the dealership
Insurance comparison websites, such as InsuranceMarket.ae or PolicyBazaar
An independent insurance broker
We would strongly advise you don't accept the quote from the dealership until you've seen other offers. Often the same policies will be sold at higher prices!
Negotiate at renewals
Remember, your policy renews annually and prices do fluctuate over time. That's a perfect opportunity to shop around for a better deal. If you're happy with your current insurer, you can always use a competing quote to try to bring their price down.
So go ahead, and set yourself a reminder ahead of your next renewal so you can get it sorted in time.
Safe driving everyone!
IN THE NEWS: Early 2025 insurance premiums up by 15-20% compared to a year ago
Car insurance premiums have been steadily on the rise since 2023 when insurers were asked by the regulator to stop offering heavy discounts on premiums.
A further blow came in April 2024, with insurers bearing the cost of car damages caused by the floods across the region, driving premiums up by another 5-15%, and certainly more if you had to make claims. Read Gulf News' full article here.
Disclaimer: Please bear in mind that this email does not constitute financial advice. Any choices you make you are solely responsible for. We always aim to provide highest quality, independent views but do your own research to ensure you’re comfortable with any changes you make to your personal finances.