Car insurance is mandatory for all vehicle owners in Dubai and the UAE but how much does car insurance cost in dubai? The costs can vary significantly based on factors like the make/model of your car, your age and driving history, the type of coverage you select, and any additional benefits. However, here are some general estimates of what you can expect to pay for car insurance premiums in Dubai
Working with an insurance broker can also help ensure you get the right coverage at a competitive price from the major car insurance companies operating in Dubai. Having at least third-party liability is mandatory, but comprehensive coverage provides greater protection for your vehicle investment.
These major UAE insurers offer various car insurance packages tailored for different coverage needs and vehicle types. Many banks and local brokers also provide white-labeled car insurance policies from these underwriters.
Third-Party Liability (TPL) Coverage (Minimum Legal Requirement):
- For a sedan (1600-2000 cc): AED 850 – AED 1,200 per year
- For a 4×4/SUV (2000-3000 cc): AED 1,200 – AED 1,800 per year
Comprehensive Insurance Coverage
- For a sedan (1600-2000 cc): AED 1,800 – AED 2,500 per year
- For a 4×4/SUV (2000-3000 cc): AED 2,500 – AED 4,000+ per year
Factors that can increase car insurance costs
- Being a younger driver under 25
- Having traffic violations/accidents on your record
- Driving a luxury, high-performance or modified vehicle
- Adding extra benefits like agency repairs, off-road coverage, etc.
Major Car Insurance Companies in Dubai
As stated earlier, the type of coverage you choose, your driving history, the make and model of your automobile, and any extra perks may all have a big impact on the price. That being said, the following are some companies in Dubai auto insurance game.
Using an insurance broker may also help you make sure that the main auto insurance providers in Dubai are offering you the appropriate coverage at a reasonable cost. It is required to have third-party liability insurance at the very least, but comprehensive coverage offers better security for your car investment.
Here are some of the major car insurance companies in Dubai along with sample annual premium rates for different types of coverage:
- AXA Insurance
- Third-party liability (TPL) for sedan: AED 900 – AED 1,200
- Comprehensive for sedan: AED 2,000 – AED 2,800
- Comprehensive for SUV: AED 3,000 – AED 4,500
- Oman Insurance Company
- TPL for sedan: AED 850 – AED 1,150
- Comprehensive for sedan: AED 2,200 – AED 3,000
- Comprehensive for luxury car: AED 5,000+
- Tokio Marine
- TPL for sedan: AED 900 – AED 1,300
- Comprehensive for sedan: AED 1,900 – AED 2,700
- Comprehensive for SUV: AED 3,200 – AED 4,800
- Arabia Insurance Company
- TPL for sedan: AED 1,000 – AED 1,400
- Comprehensive for sedan: AED 2,400 – AED 3,200
- Comprehensive for sports car: AED 6,000+
- Emirates Insurance Company
- TPL for sedan: AED 950 – AED 1,250
- Comprehensive for sedan: AED 2,100 – AED 2,900
- Comprehensive for SUV: AED 3,500 – AED 5,000
- Orient Insurance
- TPL for sedan: AED 800 – AED 1,100
- Comprehensive for sedan: AED 1,800 – AED 2,600
- Comprehensive for luxury car: AED 4,500+
- Union Insurance Company
- TPL for sedan: AED 950 – AED 1,300
- Comprehensive for sedan: AED 2,300 – AED 3,100
- Comprehensive for SUV: AED 3,800 – AED 5,500
These are just sample premium ranges to give you a general idea. Actual quotes can vary significantly based on factors like vehicle make/model, driver age, claims history, additional coverages selected and more. It’s advisable to get quotes from multiple insurers and compare to find the best rates for your specific circumstances.
Comparing quotes from multiple providers is advisable to find the right balance of coverage and affordable premiums. Car insurance costs can add up, but protecting yourself with the legally required TPL coverage at minimum is essential in Dubai.
Conclusion
Car insurance is not just a legal requirement in Dubai, but a vital financial protection for vehicle owners. While insurance costs can seem high, keep in mind that Dubai has very high living standards and one of the highest car ownership rates in the world.
Having at least third-party liability insurance is the bare minimum for avoiding penalties, but comprehensive coverage provides far more protection for your vehicle against collision, theft, natural perils, and damage costs that could run into tens of thousands of dirhams in this region.
Consulting an insurance broker or doing ample research on your specific driver and vehicle profile can help you find the most suitable and cost-effective car insurance policy from the major insurers in Dubai. A small investment in coverage is well worth avoiding potentially bankrupting repair bills from any unforeseen road incidents in this fast-paced city.