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By Anas Ahmad on 11-10-2024
Car insurance in the UAE is a crucial topic for both residents and expatriates. Whether you're a first-time car owner or considering switching insurance providers, it’s natural to have questions about what coverage to choose, how pricing works, and how UAE-specific regulations affect your insurance. In this guide, we provide expert answers to the most common car insurance questions, offering peace of mind as you navigate the insurance landscape.
In the UAE, car insurance is broadly divided into two categories: Comprehensive Insurance and Third-Party Liability Insurance.
Depending on your needs and budget, you can choose the coverage that best fits your situation.
Yes, car insurance is mandatory in the UAE. Every vehicle must be insured with at least third-party liability insurance. This is a legal requirement, and you will not be able to register your car or renew your vehicle registration without valid insurance. Having car insurance is essential to protect yourself and others on the road.
Several factors determine the cost of car insurance in the UAE, including:
In the UAE, car insurance is usually tied to the vehicle rather than the owner, which means that in most cases, insurance is transferable if you sell your car. However, the buyer will need to inform the insurance company and may be required to update the policy based on their personal information and driving record.
For more details on transferring car ownership in the UAE, visit our complete guide on vehicle registration.
A no-claims discount (NCD) is a reward for drivers who do not make any insurance claims over a certain period, usually one year. In the UAE, insurers offer significant discounts for drivers with a good driving record. The more years you go without making a claim, the higher your discount can be, sometimes reaching up to 50%.
Keep in mind, though, that the discount may be forfeited if you make a claim, so it’s important to weigh the pros and cons before filing for minor damages.
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Comprehensive insurance in the UAE covers a wide range of incidents, including:
Third-party liability insurance is the minimum legal requirement for driving in the UAE. This type of insurance only covers damages you cause to others, whether it’s their vehicle or personal property. However, it does not cover damages to your own car. While this is a cost-effective option, it offers limited protection, which may not be ideal for new or high-value cars.
If you're considering third-party insurance, it might be helpful to read our comparison of car insurance types.
Yes, car insurance is typically included when you rent a vehicle in the UAE. However, it’s important to clarify with the rental company the level of coverage provided. Some rental agencies offer only basic third-party coverage, and you may want to purchase additional comprehensive insurance for better protection.
If you frequently rent cars, check out our guide on car rental insurance tips in the UAE.
Filing a car insurance claim in the UAE is straightforward. Here’s the general process:
Most insurers process claims within a few days, but it's important to act quickly and provide all necessary information.
Not all car insurance policies in the UAE cover natural disasters, but many comprehensive insurance policies do. This can include damage from floods, sandstorms, or hail, which are occasional occurrences in the region. It's essential to verify with your insurer whether such coverage is included, especially if you live in an area prone to these events.
