What types are available?
It is up to you if you decide to choose comprehensive insurance (which we recommend), or stick with the obligatory third-party liability insurance:
Third-party liability insurance
- Provides cover for the other car involved and its passengers only. Does not provide cover for you, your passengers or your vehicle
- This is usually the cheaper option of the two
Comprehensive car insurance in Dubai provides cover for everyone involved in an incident on the road, however premiums are likely to be costly. However, your cover is extended to:
Courtesy cars as standard
No matter what kind of car insurance policy you hold, expats and locals in Dubai are entitled to a courtesy car from your insurance provider in the event of an accident.
How much will car insurance cost?
As of 2017 the cost of car insurance in Dubai has dramatically increased due to legislative changes made by the UAE in January 2017. Minimum insurance premiums have been introduced by the UAE Insurance Authority. For example, SUVs under comprehensive insurance must pay a minimum premium of AED 2,000 ($544 USD). For saloon cars, the minimum premium is AED 1,300 ($354 USD). As a result, many motorists in Dubai are choosing third-party cover only as it is much cheaper.
Remember, if you choose this type of insurance and your car is involved in an accident, you could end up paying a lot more to get it fixed compared to if you had the full comprehensive insurance.
What factors influence your premium?
There are several factors that will determine the price of your premium. If you are under the age of 30, and have not been driving for a long period of time then your insurance is likely to be much higher. Also, if your car is very expensive, and/or you require breakdown cover, then you will be expected to pay a relatively high premium.
Off-road coverage is something that you should seriously consider in Dubai, as most companies will only cover you for accidents that occur on the road. As there are many opportunities here for off-road activities, such as ‘dune bashing’, then definitely consider gaining the relevant insurance to cover this.
Choosing a car insurer in Dubai
As always, finding car insurance in another country can often be overwhelming and confusing. Due to the growing number of Western expats living in Dubai, car insurance companies that are tailored specifically to expats with customer service in English have began to appear in the Emirate.
As mentioned, insurers that handle their business in English have begun to crop up. Additionally, due to the large volume of high-value cars in Dubai, there are insurers specifically tailored to cover for these too, yet they are generally more hard to come by. Finding insurance for some older cars, especially high-value classics, can prove a particular difficulty. ‘Driven’ are an insurer uniquely tailored to insuring classic cars older than 10 years.
What you need to apply
In order to get car insurance in Dubai you will be required to show copies of the following 3 documents:
- Valid UAE driving license
- Passport with residence visa
- Vehicle registration documents
Once you have all 3 of these documents you may show them to your insurance company in order for them to calculate your premium, which will be based on age, driving experience and history.
You should also bear in mind that you will not be able to renew your vehicle registration, something which is required every 12 months in the UAE, without proof of insurance.