As a 1st time car insurance buyer, there might be many questions crossing your mind. Buying a car is usually an exciting activity for most people. Especially here in the UAE, most drivers are so passionate about their cars but should be passionate about their first time car insurance as well. As someone who has just started their driving journey, the whole process is even more exciting. In case you’re wondering about the best car insurance for first time drivers, or what is the right car insurance for new drivers in Dubai, you have come to the right place.
Buying car insurance is among the most crucial steps in getting a new car. New drivers are usually more confused about this procedure. With so many policies, plans, and insurers in front of you, it is understandable to get confused and not know what insurance to pick. That is what we’re here to help you with. In this article from Lookinsure mag, we’re going to provide you with the ultimate guide for your first car insurance experience.
Frequently Answered Questions
1: How much does car insurance cost in the UAE?
For an annual comprehensive car insurance policy in the UAE, drivers usually have to pay somewhere between AED 1200 to AED 5000. For third-party insurance, this range is somewhere between AED 450 and AED 1000.
2: What are the two types of car insurance in UAE?
In the UAE, the two main car insurance policies are comprehensive car insurance and third-party car insurance.
3: Do you need insurance to drive in the UAE?
Yes. Car insurance is mandatory in the UAE. Driving without insurance results in a penalty of AED 500, four black points on your license, and a seven-day vehicle retention period. Black points are demerits given for traffic violations.
4: What is the minimum car insurance in the UAE?
Third-party liability is the minimum mandatory level of coverage in the Emirates.
5: Which is the first insurance company in the UAE?
Established in 1970, Sharjah Insurance is the first official insurance company in the UAE.
Key Takeaways: First Time 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 1st time car insurance.
Top Mistakes to Avoid
Focusing Solely on insurance price, waiting until the last minute, overlooking coverage options
Tips for Reducing New Driver Insurance Costs
Compare quotes from insurers, get a regular (not luxury) type of car, drive carefully for a clean driving history, hunt for discounts, avoid modification, reduce annual mileage, choose higher excess
Steps of Buying First Time Insurance
Gather your documents, compare quotes, review and finalize your policy, finalize your purchase
Top Mistakes to Avoid When Buying 1st Car Insurance
As someone wondering how to buy auto insurance for the first time, it is important to remember that there are some common mistakes that so many newcomers make, which you can avoid. When buying car insurance, keep the following common mistakes in mind:
Focusing Solely On Insurance Price
Most new drivers automatically opt for insurance plans with a lower premium. Of course, that price is amongst the most influencing aspects. However, it is not always smart to only focus on the costs.
Mostly, insurance plans with lower coverages are also low in costs. However, especially as a young driver (under the age of 25) we never recommend getting a low coverage insurance, thus, it is not even usually possible since you’d be considered a high-risk driver. We highly recommend that you compare different policies and ask your insurer for help if necessary.
Waiting Until the Last Minute for First Time Car Insurance
We all know that making decisions at the last minute doesn’t usually have a good result. Choosing good car insurance for new drivers is only possible when you invest enough time and energy through the process.
This is a bit of a time-consuming procedure; therefore, we don’t recommend that you leave it for the last minute. You can start your car insurance process just as soon as you decide what type of car you want to buy.
Here at Lookinsure, you can choose the starting time of your insurance. Therefore, you can buy it now and set it for later.
Overlooking Coverage Options
For example, Maruti Car Insurance offers a range of coverage options and premiums tailored to meet the diverse needs of drivers. Many insurers also provide multiple policy types within a single coverage category, ensuring flexibility and choice.
Full coverage car insurance for new drivers is usually recommended. However, it is best to look through all the different options, consider elements, and choose a coverage option that is most suitable for you.
What New Drivers Should Know About Liability Coverage
Liability coverage, also known as third-party liability insurance, is a type of insurance policy that provides protection against damage to other people and their property.
In case of causing an accident and damaging one’s property or themselves, if you are held accountable, this type of insurance covers for you. This is also the minimum mandatory coverage policy for UAE drivers.
This means that this is the lowest acceptable insurance for any sort of driver in the Emirates. However, it does not take care of any other sort of accident and damage done to your own vehicle or yourself.
Of course you should also know why car insurance is mandatory and what is the fine for not having insurance if you ever drive without insurance in the UAE.
What Is Comprehensive Car Insurance And What You Should Know About It
On the other hand, comprehensive car insurance is the full coverage insurance policy that takes care of the main concerns of damages due to common accidents.
Other than covering third-party liabilities, it also protects against damages to your own vehicle due to accidents. Also, this insurance policy covers damage to your properties and losses due to theft, vandalism, fire, hail, and animals.
Therefore, this is the highest level of coverage available for drivers in the UAE. You can also add customized coverage options to your policy regarding your needs.
Tips for Reducing New Driver Insurance Costs
Choosing the best auto insurance for new drivers might be a challenging process. Plus, as we mentioned earlier, the UAE does not allow low coverage for young drivers, therefore this leads to higher costs.
However, there are ways to reduce insurance costs as a young driver. Paying attention to these factors leads to the cheapest insurance for new drivers. Let’s take a look:
Shop Around for First Time Car Insurance Quotes
The best way to insure a new driver is by comparing insurance quotes. With so many different insurance providers and all their policies, plans, and quotes, it is a difficult and a bit of a confusing process to search through all these insurers and find one single plan that works best for you.
That is why here at Lookinsure, we have simplified this process for you. By answering a few questions regarding yourself (your name and address, and plate number), your car details (the make, model, year, and modifications), and the coverage that you need regarding your personal use and priorities, we will be able to recommend you the most suitable insurance quotes available.
Choose A Regular Type Of Vehicle
A big part of insurance costs is related to the make and model of your vehicle. Cars considered luxury are much higher in insurance. Plus, vehicles with extra options and abilities, high performance, strong engines, etc. all require more costly insurance policies. Therefore, as new drivers wanting to lower their costs, we highly recommend choosing a vehicle that is lower in price and does not have a luxury make.
Work On Your Driving Skills
For experienced drivers, their driving history plays a big role in determining their insurance. However, for newer drivers, we recommend that you ensure your abilities before hitting the road. This means that you are more prepared to go out there and are less likely to cause accidents or make claims.
Look For Discounts on 1st Time Car Insurance
Most insurers provide discounts from time to time. Especially for new drivers. Make sure you sign up to your insurer’s news outlet and check for discounts.
Avoid Modifications
Modifications always increase your insurance and premium. Insurance providers ask for much more when you make the simplest modification to your vehicle.
Reduce Annual Mileage
The less time you spend on the road, the less you will end up paying for insurance. That is because you will be considered a low-risk driver who doesn’t spend so much time driving around, less likely to cause accidents.
Choose A Higher Excess If Possible
Choosing a higher excess and paying more towards a claim, results in lower premiums. However, make sure you are able to afford your car insurance excess before finalizing it.
Step-by-Step Guide to Buying Your First Car Insurance Online
After looking through all the different policies and choosing your suitable coverage, there comes the actual process of buying your insurance.
For most people, the preparation is much more difficult than this part, and drivers usually need more time making up their minds on the type of policy and coverage they need rather than making the purchase itself.
However, it can still be a bit confusing. Let’s take a look at how to buy car insurance for the first time:
Gather Required Documents
When purchasing car insurance in the United Arab Emirates, these documents are required:
- Valid driving license
- Passport and residence visa
- Emirates ID (for nationals)
- Vehicle Registration Certificate (RC)
- Bank statements
- Confirmation letter for GCC-specified cars
Obtain and Compare Quotes on Lookinsure
Even though comparing quotes is a step we recommend taking beforehand, it is still safe to compare your chosen policy with other policies and quotes and ensure that you have chosen the right plan.
One of the easiest ways to compare insurance quotes without approaching insurance providers directly is by using an online comparison tool like Lookinsure. The process is quite simple, you input your information and get personalized quotes and offers. After comparing the prices, you can buy car insurance policies directly through the website, in only a few minutes.
Review the Policy Thoroughly
Make sure to read through the policy very carefully. Some insurers only mention several details in their policy and nowhere else. Your excess, coverage level, premium, pros and cons, etc. all lay in the policy. Therefore, make sure you know exactly what you’re signing up for.
Finalize Your Policy
Make all the necessary changes and if something doesn’t sit right with you or you want to add/subtract a thing to/from your policy, just let our insurer know. Insurance providers are responsible and should be at your service anytime you need them.
Regularly Review Your Insurance
Regularly reviewing your insurance policy is crucial to ensure that everything is in the right place and that you have the appropriate coverage. The insurance market is constantly changing, and not reviewing your policy might expose you to threats and risks that could lead to financial loss.
The Best Car Insurance for First-Time Drivers
Let’s take a look at the best auto insurance for new drivers;
| Company | Plan Name | Price |
| Sukoon Insurance (Previously Oman Insurance) | Sukoon Insurance Non-Agency Comprehensive – Gold | Starting from AED 1,995/year |
| Oriental | Oriental Insurance Comprehensive (Garage) | Starting from AED 1,575/year |
| Methaq Takaful | Methaq Takaful Comprehensive (Garage) | Starting from AED 1,107.75/year |
| Al Sagr | Al Sagr Comprehensive (Garage) | Starting from AED 1,837.5/year |
| Yas Takaful | Yas Takaful Comprehensive (Garage) | Starting from AED 1,176/year |
Cars with Low Insurance for First Time Drivers
Let’s take a look at cars with low insurance for first-time drivers:
| Car model | Price (new) | Price (used) | pros | cons |
| Nissan Sunny | Starting from AED 53,450 | Starting from AED 22,000 | Fuel efficient, spacious, good resale value, comfortable. | Basic interior, a mediocre engine, lack of options. |
| Hyundai accent | Starting from AED 52,999 | Starting from AED 22,000 | Modern design, high safety, comfortable, spacious, decent fuel economy. | Slight high maintenance costs. |
| Kia Picanto | Starting from AED 43,000 | Starting from AED 20,000 | Excellent fuel economy, low ownership and maintenance costs, great city car. | Small cargo space, not ideal for long drives. Not very spacious, basic interior. |
| Suzuki Celerio | Starting from AED 39,900 | Starting from AED 18,000 | Affordable, fuel-efficient, easy to maintain, easy to park. | Low performance, basic interior, limited safety features, not spacious. |
| Mitsubishi Mirage | Starting from AED 38,900 | Starting from AED 17,000 | Reliable, decent fuel economy, spacious compared to rivals with this size, good value for money, warranty. | Dated interior, slightly high maintenance. |
| Chevrolet spark | Starting from AED 34,900 | Starting from AED 16,000 | Maneuverable, affordable, good city car. | Small cargo space, noisy engine, basic interior. |
Conclusion
If it is your 1st time car insurance purchase, it is normal to feel a bit confused and overwhelmed. Don’t worry, that’s what Lookinsure is here to help you with. We provide the best car insurance for first-time drivers by gathering all the best UAE insurers in one place. We’re here to help you through every step. Car insurance for new drivers in Dubai is available in different types of policies and quotes.
To make the smartest decision, you should invest some time and energy into doing research and determining your needs and priorities. This way, we can also help you compare quotes which is a very important step in the insurance process. By providing the best insurance rates for new drivers, we want to make sure you get the best services at the most reasonable prices.
