fbpx
loader image

A Beginner’s Guide to Car Insurance in UAE

UAE is home to the fastest and most expensive cars in the world and it becomes a necessity to insure these expensive machines. The addition of cars on the roads increases the chance of accidents, which can put lives at risk. A good car insurance policy can act as a safety net in case of any untoward incidence. Local laws make car insurance mandatory for owners and not insuring it could lead to severe punishment.

Introduction To Car Insurance In UAE

It should come as no surprise that car insurance is required in UAE, as described in the UAE RTA Law guidelines. Given the considerable deliberation and the amount of expenditure that goes into making a car purchasing decision, vehicle owners should expect their cars to be insured against unexpected risks. Now that the need has been identified, the most difficult question that most vehicle owners face is: what is the best way to proceed? We’ve attempted to cover all of the important aspects of car insurance in Dubai in this report. Whether it’s a gleaming new machine or a classic beauty, all vehicle owners must follow the legislation, which allows them to purchase motor insurance from a reputable service provider prior to registering the vehicle. Now comes the tricky part: how do you choose a car insurance policy? Will you take the first one that is presented to you or go for the cheapest options on the market? What are the most crucial details to be aware of? For newcomers, all the jargon and technical terminology can be overwhelming. Seeking the right car insurance in Dubai, on the other hand, is as easy as it gets. 

A customer should think about two things before getting started:

The Cover Requirement- The level of coverage expected by an individual can be used to pick a policy by incorporating essential features and excluding those that aren’t.
The Cover Risk Capacity – The level of coverage can be specified based on a user’s subjective preference. For example, a person who thinks the chances of something bad happening are slim would want to keep the bare minimum coverage, while a prudent person would not want to take chances and would compare car insurance in Dubai before purchasing an all-inclusive policy.

Purchasing car insurance can be perplexing and cause unease in the minds of many people all over the world. When it comes to seeking the right car insurance in Dubai, the UAE population is no exception, and why should they be when there are so many insurance companies, banks, and brokers to choose from? A consumer is required to be cautious enough to thoroughly understand the various policies offered by various service providers in order to ensure that the policy chosen meets his or her needs.

Some important factors to consider before purchasing car insurance in UAE are listed below:

The two forms of insurance policies available in the UAE are as follows:

Comprehensive Third Party

Comprehensive Insurance

When it comes to describing this form of insurance, the word “comprehensive” says it all. The individual covered by this form of policy will be compensated for both his or her own damages as well as those of third parties. The insurance plan is very comprehensive, but it provides comprehensive coverage that is still useful. The scope of coverage includes not only vehicle safety against collisions, fire, fraud, and other malicious acts, but also personal accident coverage if the need arises. The injured driver or passengers are protected within the scope of insurance in that situation.

Third Party Liability Insurance

In the case of an accident, this form of insurance only protects the other car and passengers. Customers who prefer third-party insurance would find that the rate is considerably lower than the equivalent and they would be liable for the costs associated with vehicle damage caused by an accidental incident. It is entirely up to the consumer to decide whether he needs comprehensive or third-party coverage before purchasing car insurance in UAE. 

It’s A Good Idea To Keep Up With All The Documentation Work

It goes without saying that insurance firms are extremely picky when it comes to documentation. Even a seemingly insignificant error will prevent applicants from obtaining insurance coverage. Insurers usually perform a background check by demanding a series of documents as evidence of identification and driving experience. These documents include:

1. Copy of the applicant’s driving license
2. Copy of the applicant’s Passport and Visa page
3. A copy of the identification card for the vehicle

UNDERSTANDING HOW INSURANCE PREMIUMS ARE DETERMINED in uae

Insurers calculate premiums based on factors such as the driver’s risk profile, claim history, and the car’s make, model, year, and engine. Below are several variables that can have a major impact on premium rates. When compared to a substantially mature and seasoned driver, a less-experienced driver would cost more to insure, resulting in higher insurance rates. 

1. A vehicle with safety features would have a small impact on insurance premiums.
2. It goes without saying that the price for a top-of-the-line and exotic luxury car would be higher.*
3. Any driver under the age of 30 would see a significant increase in the cost of their insurance premium.
4. Any inexperienced, untrained driver would almost definitely cost more to insure than a seasoned one, and this would have a significant impact on insurance premiums.

GCC coverage, Breakdown coverage, and Off road coverage, to name a few, all have an enhanced effect on the insurance premium.
Considering this consideration would definitely assist consumers in working out their preferences when purchasing car insurance in UAE

Getting the Bonus from the Insurance

This point now means a lot to potential insured consumers who wish to move insurance providers for a variety of reasons. This procedure requires the customer to contact his or her previous service provider in order to obtain a “No Claims” Certificate. The applicant will get major discounts on the yearly insurance rate by applying the certificate to the new service provider.

Having Off-Road Travel Insurance is Advantageous

Do you like going on off-road excursions? If so, there’s no better way to protect yourself than by purchasing off-road travel insurance in Dubai. As evidenced by such common events as dune bashing, Wadi bashing, and others, this adventure-filled city is ideal for off-road travel. Customers should be covered not only for incidents that occur on paved highways, but also for accidents that occur off-road. This point should be considered before they compare car insurance in Dubai to choose their preferred insurer. 

Emergency Services Are Always Good To Have

In the event of an emergency, timely roadside assistance would provide invaluable assistance to the driver. This is an important point to remember, particularly for those who are planning to purchase car insurance in UAE in the near future. In the event of a roadside emergency, such as a flat tire or low gasoline, this facility can assist you in dealing with the situation as quickly as possible. The emergency number is written on the insurance form, and it can be called for quick roadside assistance. It’s worth noting that some insurance providers don’t offer round-the-clock roadside assistance; in this case, consumers should compare car insurance in Dubai and choose their preferred service provider at their leisure.

What Do Car Insurance Policies Cover?

Dead Battery & Refueling

In this situation, support is given to jump-start the engine so that it can be taken to a nearby garage for repair. If the vehicle runs out of gas while on the road, fuel assistance is given.

Extraction and Removal

In the event of a failure due to an accident, crane assistance is given to lift or recover the insured car from the scene of the accident.

Flat or Leaking Tyre Assistance

If any of the tyres go flat, the insurer can assist in repairing or fixing them without charging any labour fees.

Towing Assistance & Unlocking Ignition Key

If the car breaks down or is involved in an accident, transport services or towing assistance to the nearest repair shop are available. If the insurance policy covers it, the roadside assistance program will offer this service and If the keys are mistakenly left inside the car, roadside assistance is available to unlock the vehicle.

Additional Covers

  • GCC Cover/Oman Cover – This is a must-have for people who regularly fly to neighboring countries because it offers geographic coverage.
  • Grace Time for Renewal – A few insurers give a one-month grace period to extend their car insurance plan if it has lapsed.
  • Natural Calamity Cover – The majority of auto insurance firms provide coverage in the event of natural disasters.
  • Free Pick-Up and Drop-Off – Several insurance companies in the UAE  provide free airport pick-up and drop-off services.
  • Large Third-Party Cover – The policyholders get massive third-party coverage
  • Coverage to Personal Belongings or Emergency Medical Expenses – In a majority of cases, the policyholders enjoy coverage for personal belongings against loss or damage. Some insurance companies also offer the facility of availing emergency medical charges.
  • 24 Hours Roadside Assistance –  In the event that the insured vehicle breaks down or an emergency happens, auto insurance in the UAE requires roadside assistance.
  • Car Hire Cover or Car Cash Benefit – These are some of the most common motor insurance optional benefits in Dubai. The cost of hiring a replacement vehicle would be paid by the provider. In Dubai, a few auto insurance firms provide courtesy cash while the insured car is being fixed. Meanwhile, the policyholder will rent a car at the insurer’s expense.
  • Agency Repairs – The majority of car insurance firms in the UAE provide a 5-year extension of agency repair services.
  • Windscreen Damage Cover –This benefit, which covers the replacement or repair of a damaged or broken windscreen, is not available from every insurance provider in the UAE.
  • Off-road Coverage – Policyholders will benefit from compensation for any damage to their car that occurs when driving off the beaten path.
  • Personal Accident Cover – The compensation is available to the driver and passengers in the event that one of them dies or is physically injured as a result of the crash.

What Do Car Insurance Policies Not Cover?


  • Driving with an Expired License or While Under the Influence of Intoxicants – Whether the driver is driving while under the influence of intoxicants such as alcohol, narcotics, or other substances and has an accident.
  • Overloading – In the event that the insured vehicle was overloaded or encumbered beyond its ability.
  • Providing Inaccurate or Misleading Information or Intentional Damage- Whether you give the insurance company false or misleading information when you purchase a policy. Alternatively, whether it can be shown that the damage/accident was done on purpose.
  • Unlawful Use of Insured Vehicle – When an insured vehicle is used for purposes other than those specified in the policy.
  • Claims filed more than three years after an accident are not accepted by Dubai’s motor insurance companies.

No Claim Bonus/Discount


A no-claim incentive is a discount provided to policyholders who do not file a claim on their insurance. It is available at the time of policy renewal. Among NCB’s distinguishing characteristics are:

  • At the time of renewal or porting, the no-claim discount value is not transferable.
  • To pass the accumulated NCB value, the insurance company must have a no claim certificate.
  • The no-claims discount is one of the most reliable methods of lowering auto insurance premiums, and it applies to comprehensive car insurance.
  • No claim discount of up to 20%, which can be used as a discount on the premium for the following year.
  • Different car insurance companies in UAE can offer different no-claim discounts.

Apply for a Mashreq Credit card & Get up to 2000 AED joining bonus

Avail up to 20% Cashback on daily spends! Simply apply with your Emirates ID