Best car insurance in the Emirates in 2025
- How does car insurance work in the United Arab Emirates?
- What does car insurance cover?
- What is typically not covered with car insurance?
- How much does car insurance cost in the UAE?
- What is the best car insurance in the United Arab Emirates?
- How to lower the cost of your car insurance?
- FAQ
- On the same topic
Did you know that driving without car insurance in the UAE can result in fines of up to AED 500, impoundment of your vehicle, and 4 black points on your license? Insurance is not just a legal requirement—the bustling roads and high rate of luxury car ownership mean that even minor accidents can lead to out-of-pocket repair costs reaching tens of thousands of dirhams. The most common risks include collisions, theft, and damage from sandstorms or flooding, and requirements for basic third-party liability make compliance essential for all drivers.
However, not all car insurance policies are equal—some exclude off-road use, restrict coverage outside the UAE, or impose strict limits on repair costs and personal accident claims. Comparing policies lets you find the ideal balance of price, reimbursement level, add-ons, and fine print for your vehicle and driving style. At HelloSafe, our mission is to empower UAE drivers with up-to-date, impartial comparisons and practical advice so you can choose car insurance confidently and get real value and reliability from your coverage.
How does car insurance work in the United Arab Emirates?
Car insurance in the UAE is a legal requirement for all vehicle owners and serves as crucial financial protection against liability, damage, and theft. Basic policies usually cover third-party liability, while comprehensive plans can include coverage for your own vehicle, natural disasters, fire, and even personal accidents. Insurance works on the reimbursement principle: after a covered incident, policyholders pay an excess (deductible) and the insurer covers the rest, subject to policy limits and terms.
Choosing a good car insurance plan in the UAE ensures you comply with the law, avoid heavy fines, and gain access to a range of coverage options from essential third-party cover to premium, all-risk protection. Many plans can be customized to match your specific needs, driving habits, and budget, with add-ons for international travel, off-road use, or luxury vehicles. Flexible reimbursement levels and optional extras like roadside assistance or agency repair provide added peace of mind for drivers throughout the Emirates.
What does car insurance cover?
Car insurance in the UAE starts with basic legal coverage, known as third-party liability, which pays for bodily injury and property damage you may cause to others in an accident. Optional add-ons include comprehensive insurance (covering your own vehicle against accidents, theft, fire, and natural disasters), personal accident protection, roadside assistance, and extras such as agency repairs or off-road cover. The main difference is that basic covers only third-party damages, while add-ons and full coverage protect your own car and offer additional services.
Reimbursement for claims works on a principle where, after an approved loss, the insurer pays out the repair or replacement amount minus any agreed deductible, as long as the event is covered and all terms are met. Some covers may include waiting periods or exclusions, so it’s vital to read your policy carefully.
| Type of cover | Basic Legal Coverage | Mid-range | Full coverage |
|---|---|---|---|
| Bodily Injury | ✅ | ✅ | ✅ |
| Property Damage | ✅ | ✅ | ✅ |
| Uninsured/Underinsured Motorist | ❌ | Optional | Optional |
| Theft | ❌ | Optional | ✅ |
| Vandalism | ❌ | Optional | ✅ |
| Natural Disasters | ❌ | Optional | ✅ |
| Fallen Objects | ❌ | Optional | ✅ |
| Animal Collisions | ❌ | Optional | ✅ |
| Broken Glass | ❌ | Optional | ✅ |
| Collision | ❌ | Optional | ✅ |
| Medical Payments (MedPay) | ❌ | Optional | Optional |
| Personal Injury Protection (PIP) | ❌ | ❌ | Optional |
| Roadside Assistance | ❌ | Optional | Optional |
| Rental Reimbursement | ❌ | Optional | Optional |
| Gap Insurance | ❌ | Optional | Optional |
| Custom Parts & Equipment Coverage | ❌ | Optional | Optional |
| Ride-sharing Coverage | ❌ | Optional | Optional |
| New Car Replacement | ❌ | ❌ | Optional |
| Accident Forgiveness | ❌ | ❌ | Optional |
What is typically not covered with car insurance?
Car insurance policies in the UAE typically exclude cover for intentional damage caused by the vehicle owner or driver, as well as costs related to regular maintenance, wear and tear, or mechanical breakdown. Claims will not be paid if the driver is found to be under the influence of alcohol or drugs, or if the vehicle is driven by someone not authorised by the policy. Loss or damage to personal belongings inside the car is usually not included, and insurers will not pay beyond policy coverage limits. Other frequent exclusions can include participation in illegal activities or accidents outside the territorial limits of the UAE, and certain waiting periods may apply for specific coverages.
| Exclusion type | Example | Good to know |
|---|---|---|
| Intentional Acts | Deliberately damaging your own vehicle | Willful damage is never covered |
| Vehicle Condition & Use |
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| Legal/Administrative |
|
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| Geographical/External Risks |
|
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- Normal wear and tear, maintenance, or repairs
- Driving under the influence (alcohol or drugs)
- Unauthorised or unlisted drivers
- Routine car servicing and ageing are not claimable
- Any claim under DUI is strictly rejected
- Only drivers named in the policy are covered
- Claims above coverage or sum insured limits
- Use in unauthorised activities (e.g. racing)
- The insurer only pays up to the policy’s maximum limit
- Damage from racing or unlawful use voids cover
- Damage or loss outside the UAE
- Loss or theft of personal items inside the car
- Waiting period before cover starts
- Policies usually exclude incidents abroad
- Personal belongings often need separate cover
- Some add-ons require a short period before becoming active
How much does car insurance cost in the UAE?
Car insurance pricing in the UAE is influenced by several factors, including the driver’s age, driving history, type of coverage selected (third party liability or comprehensive), the deductible chosen, and the location where the car is kept or driven most often. Additional price determinants include the make, model, and market value of the vehicle, as well as its age and intended use. Insurance companies in the UAE generally charge higher premiums for younger and less experienced drivers, those with at-fault claims or prior traffic violations, and for drivers opting to insure newer or high-performance vehicles. Premiums also tend to rise if you increase the scope of your coverage, lower your deductible, or live in an area with a higher rate of accidents or theft, such as major urban centers. The frequency of use (annual mileage) and prior claims history also affect the rate, with more frequent drivers or those with multiple past claims facing higher costs.
| Driver's Age | Coverage Level | Monthly premium (low-risk location) | Monthly premium (high-risk location) |
|---|---|---|---|
| 25 | Liability only | AED 185 | AED 245 |
| 25 | Full coverage | AED 350 | AED 460 |
| 45 | Liability only | AED 130 | AED 180 |
| 45 | Full coverage | AED 250 | AED 335 |
| 65 | Liability only | AED 145 | AED 195 |
| 65 | Full coverage | AED 270 | AED 360 |
What is the best car insurance in the United Arab Emirates?
Best for everyday commuting (school/work)
Oman Insurance “Motor Standard Comprehensive” is ideal for daily commuters in the UAE, offering full accidental damage and third-party liability cover, roadside assistance, and agency repairs for up to three years. This plan ensures reliable protection for school and work journeys, with efficient claims processing and strong customer support.
Best for families with multiple vehicles
AXA “Smart Motor Plan” supports families with flexible multi-car discounts, comprehensive protection for each vehicle, and personal accident cover up to AED 200,000 per person. This product also includes 24/7 roadside assistance and natural peril coverage, making it a practical and cost-effective solution for busy family needs.
Best for tight budgets
Salama “Essential Third-Party Liability” is a market leader for affordability in the UAE, meeting the legal minimum requirement and covering third-party bodily injury and property damage up to AED 2 million. This plan is perfect for price-sensitive drivers seeking basic, yet reliable protection to stay compliant at the lowest possible cost.
Best for expats or international drivers
Orient Insurance “Comprehensive Plus” is highly recommended for expats and international drivers due to its broad coverage, flexible policy terms, and international license acceptance. It includes accidental damage, theft, fire, and personal effects cover, with direct settlement to agency workshops and assistance for new arrivals adjusting to the UAE market.
Best for senior drivers
RSA “Motor Executive” plan caters to UAE’s senior drivers by providing comprehensive coverage, agency repair for vehicles up to 5 years old, and a no-claims discount of up to 50%. Additional benefits such as emergency medical expenses (up to AED 5,000) and valet claims service make driving safer and more convenient for senior members.
Best for students or young drivers
Noor Takaful “Smart Drive” plan is a standout choice for students and young drivers, offering competitive comprehensive cover with additional options like natural disaster, fire, and theft protection. With affordable pricing, flexible excess amounts, and discounts for good driving records, this plan encourages safer driving habits and budget-friendly premiums.
Best for self-employed or business drivers
Emirates Insurance “Fleet Motor Policy” addresses the needs of self-employed or small business vehicle owners by allowing multiple named vehicles under a single policy, comprehensive or third-party options, and flexible payment terms. The plan features agency repair and business-use extensions, ensuring robust protection for business vehicles on the road.
How to lower the cost of your car insurance?
Here are some of the most effective ways to reduce your car insurance premiums in the United Arab Emirates:
- Compare offers: Use the HelloSafe comparison tool at the top of the page to quickly find and compare the best car insurance rates from leading providers.
- Increase your voluntary excess: Choosing a higher excess amount on your policy generally lowers your annual premium, but ensure you can afford it in case of an accident.
- Maintain a clean driving record: Avoiding accidents and traffic violations helps you access no-claims discounts and keeps your premium low.
- Choose a car with lower repair costs: Vehicles that are more affordable and easier to repair often come with significantly lower insurance premiums.
- Bundle your insurance products: Insuring multiple vehicles or combining car and home insurance with the same provider can make you eligible for special discounts.
- Install additional security features: Adding approved anti-theft devices or GPS tracking systems to your vehicle reduces the risk of theft and can lower your premium.
- Limit your annual mileage: Informing your insurer if you drive fewer kilometers each year can reduce your risk profile and may result in lower rates.
- Review your coverage annually: Reassess your policy needs each year to remove unnecessary add-ons or adjust coverage in line with your current circumstances.
FAQ
What types of car insurance are mandatory in the UAE?
Car insurance in the UAE requires at least third-party liability coverage, which covers damages to other people and their property if you are at fault in an accident. Comprehensive coverage, protecting your own vehicle as well, is optional but popular among car owners.
How is the cost of car insurance calculated in the UAE?
The cost of car insurance is based on factors such as your age, driving experience, claims history, the type and age of your vehicle, and where you reside. Insurers also consider how the car is used and add-ons you might select when setting your premium.
Can I transfer my car insurance to a new owner if I sell my car?
In the UAE, car insurance policies are not automatically transferred when a vehicle is sold. The policyholder must cancel their policy or, in some cases, request a formal transfer; the new owner usually needs to purchase a new insurance policy before registration.
What is no-claims discount and how does it work?
A no-claims discount is a reward offered by insurers if you do not make any claims during your policy period. The longer you go without claiming, the bigger your potential future discount, which can significantly reduce your premium over time.
Do I need car insurance for a new car in the UAE before registration?
Yes, you must have at least valid third-party liability car insurance before registering a new or used car in the UAE. Without it, the vehicle cannot be legally driven on the road or registered with road authorities.
Are agency repairs covered under all car insurance policies?
Not every car insurance policy in the UAE includes agency repairs. Usually, this benefit is offered as part of comprehensive plans or as an extra add-on, so you need to check your policy details before relying on agency service centers.
What are common exclusions from car insurance policies?
Car insurance in the UAE may exclude coverage for losses from illegal activities, driving under the influence, racing, or using the car outside declared purposes. Mechanical failures and wear and tear are often not covered unless you have added specific policy riders.
Can I drive in other GCC countries with UAE car insurance?
Some comprehensive car insurance policies include GCC coverage so you are protected while driving in neighboring Gulf countries. However, this is not automatic for all policies and may require an additional premium or specific arrangement.
What should I do if I am involved in a car accident in the UAE?
If you are involved in a car accident, stay calm and move your vehicle to a safe place if possible. Notify the police, obtain a police report, document the scene with photos, and contact your insurer promptly to begin the claims process.
Is off-road driving covered by car insurance in the UAE?
Off-road coverage is not always included by default in UAE car insurance policies. If you plan to drive off-road, especially in desert areas, you should request this add-on or confirm with your insurer that such usage is protected.
What types of car insurance are mandatory in the UAE?
Car insurance in the UAE requires at least third-party liability coverage, which covers damages to other people and their property if you are at fault in an accident. Comprehensive coverage, protecting your own vehicle as well, is optional but popular among car owners.
How is the cost of car insurance calculated in the UAE?
The cost of car insurance is based on factors such as your age, driving experience, claims history, the type and age of your vehicle, and where you reside. Insurers also consider how the car is used and add-ons you might select when setting your premium.
Can I transfer my car insurance to a new owner if I sell my car?
In the UAE, car insurance policies are not automatically transferred when a vehicle is sold. The policyholder must cancel their policy or, in some cases, request a formal transfer; the new owner usually needs to purchase a new insurance policy before registration.
What is no-claims discount and how does it work?
A no-claims discount is a reward offered by insurers if you do not make any claims during your policy period. The longer you go without claiming, the bigger your potential future discount, which can significantly reduce your premium over time.
Do I need car insurance for a new car in the UAE before registration?
Yes, you must have at least valid third-party liability car insurance before registering a new or used car in the UAE. Without it, the vehicle cannot be legally driven on the road or registered with road authorities.
Are agency repairs covered under all car insurance policies?
Not every car insurance policy in the UAE includes agency repairs. Usually, this benefit is offered as part of comprehensive plans or as an extra add-on, so you need to check your policy details before relying on agency service centers.
What are common exclusions from car insurance policies?
Car insurance in the UAE may exclude coverage for losses from illegal activities, driving under the influence, racing, or using the car outside declared purposes. Mechanical failures and wear and tear are often not covered unless you have added specific policy riders.
Can I drive in other GCC countries with UAE car insurance?
Some comprehensive car insurance policies include GCC coverage so you are protected while driving in neighboring Gulf countries. However, this is not automatic for all policies and may require an additional premium or specific arrangement.
What should I do if I am involved in a car accident in the UAE?
If you are involved in a car accident, stay calm and move your vehicle to a safe place if possible. Notify the police, obtain a police report, document the scene with photos, and contact your insurer promptly to begin the claims process.
Is off-road driving covered by car insurance in the UAE?
Off-road coverage is not always included by default in UAE car insurance policies. If you plan to drive off-road, especially in desert areas, you should request this add-on or confirm with your insurer that such usage is protected.
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