How to get car insurance in the UAE

car insurance in the UAE

Car insurance in the UAE is mandatory when buying a car no matter what Emirate you live in and to ease the process; we’ve got a handy guide for you to obtain car insurance.

But before we get started here are three things to note.

Driving a car in the UAE without insurance is a punishable offence and can land you in a lot of trouble with the authorities. If caught, a fine of AED 500 while be handed to the driver along with four black points added to the driver’s license and the vehicle will be impounded for seven days.

Dubicars would like to remind drivers that not only driving without insurance can land you in trouble; it is also a massive risk for both you and your fellow road users.

The RTA will not allow anyone to register a car without insurance.

Now that’s out of the way, let’s get to it.

Types of car insurance in the UAE

Currently, there are only two types of car insurance in the UAE, and they are as follows

  • Comprehensive Insurance: In case of an accident, this type covers both cars. Not only does comprehensive cover both cars it covers, but fire, theft, malicious acts and personal accidents also in case the driver or passenger is injured.
  • Third party liability insurance: Third-party only covers the other car and passengers in case of an accident. While costing less compared to comprehensive, you’ll have to pay for your own car to be fixed.
    Note: Vehicles purchased via a bank loan will have to be covered by a comprehensive plan as most UAE banks will not allow you to purchase a third party plan.

The year of the vehicle also determines what type of policy can be taken out. If a car is of a certain age, you can only apply for third party.

What documents are required for car insurance in the UAE

When insuring your car with either of the two plans, you will need the following documents;

– Driving license
– Passport with visa stamp
– Vehicle registration card (Mulkiya)

If you are registering a brand new car, a proforma invoice is required.

Note: select sources indicate copies are excepted. However, Dubicars recommends you take the originals with you too.

It’s also worth noting; insurance policies are valid for 13 months, not 12.

How is insurance calculated in the UAE?

Car insurance in the UAE is calculated depending on a number of factors including the age of the vehicle, size of the engine, make, and model of the car claims history and risk profile of the driver.

Factor Influence on price
New car with the latest safety features Low
Price of the vehicle High
Age of the driver is under 30 High
Limited experience at driving High
GCC coverage High
Off-road coverage High
Breakdown coverage High

Additional Cover Options

One of if not the most popular body type of car to register in the UAE is an SUV and seeing as the region is surrounded by desert one will certainly have the urge to take a trip offroad. If that is the case, it’s best to get off-road coverage as well in case of an accident on the desert.

Below are additional covers one can apply for;

– Personal belongings cover
– Windscreen cover
– Dent repair
– Fire & theft cover
– Replacement of locks
– Oman extension
– New car replacement
– Agency repairs

Where do I get car insurance in the UAE from?

Most registration centres have one or two car insurance company representative’s within the facility. This is usually the fastest and easiest way to get car insurance in the UAE.

Alternatively, several insurance companies can be found around the UAE and usually have offices so feel free to hunt around and compare prices with them all.

Select dealerships in the UAE also offer car insurance there and then when purchasing a car. Even if they don’t, they will know someone that does or someone that can sort it out.

They will offer one of the two premiums covered, and it’s best to check with them what they offer regarding pricing and what is covered by the policy before going ahead with the car insurance. If the price is not to your liking, you can go elsewhere. 

I sold my car, does insurance carry over or can I get a refund?

If this is the case and there are seven months or more pending on your insurance policy, it can be transferred to the new owner if they meet a certain criteria (these can vary depending on the company). If there are less than six months, a new policy will have to be taken out by the buyer.

A refund can also be issued by your insurance company granted there are seven months left on the policy. To apply for a refund, you’ll have to provide proof the covered vehicle has been sold. A copy of the new registration card (Mulkiya) will do. Not all insurance companies offer refunds, so check beforehand.

Now that’s all covered; it’s time to buy your next car. Dubicars has over 10,000 new and used cars for sale in Dubai, Abu Dhabi, Sharjah and Ajman.

Photo credit: International Motoring Club

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