Introduction
Car insurance in UAE is mandatory for every vehicle owner. Whether you own a new or used car, having valid car insurance is required by law. Many people in the UAE are confused about car insurance prices, types, and which policy is best for them.
In this complete guide, we will explain car insurance in UAE, including prices, third party insurance, comprehensive insurance, and tips to get the best and cheapest car insurance in Dubai and across the UAE.
Types of Car Insurance in UAE
There are two main types of car insurance in UAE: third party insurance and comprehensive insurance.
Third Party Car Insurance in UAE
Third party car insurance is the minimum legal requirement in the UAE. It covers damages caused to another person or vehicle but does not cover your own car.
Benefits of Third Party Insurance:
- Cheapest car insurance option in UAE
- Required by law
- Suitable for old or low-value cars
Third Party Insurance Price in UAE:
- Starts from AED 630 for saloon cars
- Usually ranges between AED 630 and AED 1,200
Comprehensive Car Insurance in UAE
Comprehensive car insurance provides full coverage for your car and third-party damages. It also covers theft, fire, and accidental damage.
Benefits of Comprehensive Insurance:
- Full protection for your vehicle
- Covers accidents, theft, and fire
- Recommended for new or expensive cars
Comprehensive Insurance Price in UAE:
- Usually 2% to 5% of the car’s value
Example:
- Car value AED 50,000 → Insurance cost AED 1,000 to AED 2,500
Average Car Insurance Price in UAE
Car insurance prices in UAE depend on several factors, including car model, year, driver age, driving history, and emirate.
Estimated Car Insurance Prices:
Saloon cars:
- Third party insurance: AED 630 – AED 1,200
- Comprehensive insurance: AED 1,000 – AED 3,000
SUVs:
- Third party insurance: AED 900 – AED 1,800
- Comprehensive insurance: AED 2,000 – AED 5,000
Luxury cars:
- Third party insurance: AED 1,500 – AED 3,000
- Comprehensive insurance: AED 5,000 – AED 15,000
Car Insurance in Dubai, Sharjah, and Abu Dhabi
Car insurance prices vary across different emirates in the UAE.
- Dubai: Slightly higher insurance premiums due to traffic and risk factors
- Sharjah: More affordable car insurance options
- Abu Dhabi: Competitive and balanced insurance rates
Many insurance companies in the UAE offer online car insurance quotes, making it easy to compare prices and choose the best policy.
Best Car Insurance Companies in UAE
Some of the popular car insurance companies in UAE include:
- AXA Insurance
- Oman Insurance
- Tokio Marine
- RSA Insurance
- Noor Takaful
- Salama Insurance
It is always recommended to compare multiple car insurance quotes before buying a policy.
Tips to Get Cheap Car Insurance in UAE
Here are some practical tips to reduce your car insurance cost in UAE:
- Compare quotes from different insurance companies
- Maintain a clean driving record
- Choose a higher deductible
- Install safety features in your car
- Renew your insurance policy on time
Third Party vs Comprehensive Car Insurance – Which is Better?
Third party insurance is suitable if:
- Your car is old
- You want the cheapest insurance option
Comprehensive insurance is better if:
- Your car is new or expensive
- You want complete coverage and peace of mind
For most car owners in the UAE, comprehensive car insurance is the recommended choice.
Why Car Insurance is Important in UAE
Car insurance protects you from financial losses in case of accidents, theft, or damage. It also ensures compliance with UAE laws and provides peace of mind while driving.
Conclusion
Car insurance in UAE is essential for every car owner. Whether you choose third party or comprehensive insurance, always compare prices and coverage before making a decision.
If you are looking for cheap and reliable car insurance in UAE, make sure to choose the right policy according to your car and budget.