Car insurance Dubai price varies depending on the premium you choose, the advantages your insurer provides, and much more. When it comes to the cost of car insurance, there are plenty of important factors that can help drivers determine car insurance rates in Dubai. Learning all about these factors can help you decrease your costs and reduce unnecessary spending while you learn how to choose insurance. The right insurance plan differs from person to person, and looking for a reasonable vehicle insurance price requires some research.
In this article from Lookinsure mag, we are going to take a look at the various factors that determine the cost of vehicle insurance in Dubai, calculate the average auto insurance price, and give you all the necessary information. Let’s get started.
Frequently Answered Question
1: What is basic car insurance in Dubai?
In Dubai, the must-have and basic car insurance policy is third-party insurance. This is the minimum legal requirement in order to drive in Dubai without facing penalties.
2: How much is third-party car insurance in Dubai?
Third-party car insurance in Dubai annually costs between AED 450 to AED 1000.
3: Who is the cheapest full-coverage auto insurance?
At Lookinsure you can compare the price of car insurance online from many insurers in UAE and find out the cheapest full coverage auto insurance.
4: Is car insurance mandatory in the UAE?
Yes. Car insurance is mandatory in the UAE. If caught without car insurance while driving, you will face a penalty of AED 500, four black points on your driver’s license, and a minimum of a seven-day retention.
Key Takeaways: Cost of Car Insurance
Lookinsure is all about making the best of your time and money; so, here’s a short version (TLDR or Too Long, Didn’t Read) of all the points on car insurance cost.
1: What Factors Influence Car Insurance Price?
Driving record, age, location, claims history, car make/model
2: What’s the Average Car Insurance Cost
Annual premiums for comprehensive car insurance in Dubai are somewhere between AED 1200 to AED 5000 (around AED 100 – AED 416 per month). Third-party insurance stands somewhere between AED 450 to AED 1000. Don’t forget that these costs are not exact.
How Much Is Car Insurance Price in Dubai?
Car insurance Dubai price depends on various factors. We will take a detailed look into those a bit later. But there’s one thing that matters most; the type of insurance plan you pick. There are two main insurance plans available for vehicles in the UAE: comprehensive and third-party. First, let’s learn their differences. Of course, who wouldn’t like to know how to get cheap car insurance. Check out our guide for the most practical tips.
Comprehensive Car Insurance
Most insurers suggest that you purchase this plan. That is because this insurance plan provides the highest level of protection. Third-party liabilities are included in this insurance policy as well as fire and theft damages.
This policy also includes features that vary from insurer to insurer. That is because you are purchasing the most complete plan and you get bonus features that others might not get.
Third-Party Insurance
Third-party insurance is the minimum level of insurance that is mandatory in the UAE. This policy provides much less protection than the previous one. Also the guide on why is car insurance mandatory if you’re interested to know more.
This is only useful in case of causing an accident. Third-party liabilities such as self-injury, medical bills, and property damage are included in this insurance. After learning about the two main insurance policies, you can guess that the comprehensive policy costs much more than the third party.
This is obviously due to the features of each policy. Other than that, add-on features such as adding fire and theft to your third-party insurance, or adding an off-road insurance to your comprehensive plan will increase your rates.
Most insurance companies provide deals and offers for certain drivers, car types, and whatnot. Car valuation for insurance purposes is a key aspect of your vehicle’s insurance quote and premium rates, so we suggest you get a good overview of it for future.
What Influences the Cost Of Car Insurance?
When it comes to the price of car insurance in the UAE, a couple of factors influence it. These factors work together to determine how much you pay for your insurance. Let’s take a careful look at each one of these factors:
Driving record
Your driving record is a very important factor when it comes to your motor insurance price. Insurance providers always look at your driving record before finalizing your plan and determining your costs. Having even a speeding ticket might increase your costs. On the other hand, drivers with a clean record or a clean ‘slate’ tend to pay less, since they are known to be relatively safer drivers.
Age
Age is another crucial factor in determining automobile insurance prices. Young drivers (drivers under the age of 25) are known to be high-risk drivers. Meaning, they are more likely to get involved in accidents and cause some. Therefore, they usually have to pay more for their car insurance.
Location
Depending on where you live, you might have to pay more for your car insurance. Drivers residing in densely populated areas might be at a higher risk of accidents and theft, therefore, they usually tend to pay more for their insurance. This is mainly applicable across the country.
Claims History
Drivers who have raised more claims usually have higher rates when it comes to the cost of car insurance in Dubai. These people filed a significant number of claims or have been held liable in certain accidents. On the other hand, drivers with little to no claims pay much less for insurance. Plus, companies usually reward these drivers with a ‘no claims bonus’.
Car Make/Model
Your car’s make and model play a big role in how much your insurance will cost. Luxury cars with high-end trim and unique features will result in an increased premium. The age of your car also matters. Usually, newer cars are more expensive to insure. However, an antique, vintage, or classic vehicle also has high insurance rates.
In this process, pay extra attention to factors that affect car insurance premiums since they have considerable influence on finding the right types of car insurance.
We suggest you read car insurance buying guide before you finalize any purchase to save on your car insurance while getting the best deal for you. By the way, if you’re living in Dubai or go there a lot, try finding a quote from car insurance companies in Dubai to have an easier process.
What Is the Average Cost of Car Insurance?
The cost of car insurance is calculated considering the factors listed above. However, there’s an average auto insurance cost per month that is roughly estimated.
Annual premiums for comprehensive car insurance in Dubai are somewhere between AED 1200 to AED 5000 (around AED 100 – AED 416 per month). Third-party insurance stands somewhere between AED 450 to AED 1000. Don’t forget that these costs are not exact, and the average car insurance cost per month by age and state varies. Also consider checking the comprehensive vs third party insurance guide to get a detail of their differences in all processes and find lower car insurance prices.
How To Estimate the Cost of Car Insurance?
There are insurance calculators that you can use to give you a near-the-exact rate to your actual vehicle insurance price. However, there’s also a simple way of estimating it.
Let’s say your car value is somewhere between AED 10000 and AED 300000, and the starting insurance rating is %3. Cars that cost less and don’t fit into this spectrum, will get an average rate of %3.
Cars that cost more than AED 300000 will have an average insurance rate of 2.75%. If your car has 25 years or more, your rate will be around 15%, however, for newer cars, the starting rate is 25%. For a sports car, you will have to add 20%. For an SUV you can subtract 10%.
How To Lower Car Insurance Costs
There are some tips and tricks that can help you lower your car insurance costs. Let’s take a look:
Compare Insurance Quotes
Comparing insurance quotes is possible through most insurance websites such as Lookinsure. Here at Lookinsure, we make sure to consider your needs and priorities while offering you the most reasonable deals.
Look For Discounts
Most insurance companies provide discounts from time to time.it is also not a bad idea to ask for a discount. Sometimes providers have a discount available that you know nothing about. Therefore, it is always safe to ask. Plus, as a safe driver, it is useful to know that so many insurers provide a no-claims discount feature for drivers who don’t make claims during the year.
Maintain A Good Driving Record
As mentioned earlier, your driving history is probably the most important factor in determining your insurance cost. By paying attention to this factor, you can reduce your insurance costs. Don’t miss out our guide on no claim bonus in motor insurance since it will help you save a lot on your insurance.
Try Lookinsure to Reduce the Cost of Car Insurance
Through Lookinsure’s online comparison service, you can find the cost of car insurance from a wide range of providers. Armed with that knowledge, the decision-making process to buy car insurance is much simpler. The process is streamlined for quick access to insurance quotes from top UAE providers, helping you find the lowest cost of car insurance for your conditions.
Conclusion
As a UAE driver, the car insurance rate in Dubai and the cost of car insurance is a big deal. It is important to know what factors affect car insurance Dubai’s price and how you can remove unnecessary factors to pay a reasonable amount. Also, it is good to know the average estimated costs of basic insurance policies to compare plans and choose a suitable option. If it is your first time buying an insurance plan, or you’re just looking to make some changes, don’t forget to pay attention to these details.
