2017 UAE Motor Insurance Rules

There’s all sorts of goodies that insurance companies will now have to provide to UAE motorists – but it remains a fact that new rules from the UAE Insurance Authority (IA) mean that over a third of UAE motorists are expected to pay more for their vehicle insurance this year. That’s because of a new minimum rate for fully comprehensive coverage (now AED 1300 for sedan models and AED 2000 for SUVs). Analysis by Compareit4me showed that 31% of sedan drivers and 43% of SUV drivers were paying less than the new minimum thresholds – with affected UAE motorists likely to paying an average of DH262 more this year than last year. The new unified schedule of premiums from the IA went live on January 1st, 2017. Existing policies are not affected, but extensions and new policies will comply with the new rules.

New 2017 UAE Motor Insurance Rules

Many service advantages are offered to the motorist, but comes with a new financial burden that is likely to be widespread:

Higher Minimum Premiums

This is what UAE motorists are mostly complaining about. Minimum premiums for fully comprehensive coverage will now begin at AED 1300 (up from AED 1050) for sedan models, and start at AED 2000 for SUVs.

Free Replacement Car

If your vehicle is damaged in an accident which isn’t your fault, you will receive either:

  • A replacement car
  • Or compensation of up to a maximum of AED300 per day for ten days

Compulsory Cover for Close Family

Included in your new policy will be automatic coverage for close family members.

More Choice over Premiums

If you are looking for a fully comprehensive policy, you can now effectively build your own by getting individual quotes for third party insurance and “own damage” insurance; until now, insurance companies have sold the two areas of coverage as one quoted package, which didn’t give the motorist any choice.

Higher Cover for Damage

Cover for property damage will be proved at a maximum of AED 2m – eight times what it was before (AED 250k).

More Likely to Write off a Vehicle

If the chassis of your car is damaged irreparably, insurers will have to write the vehicle off completely rather than provide funds for repair.

Maximum Premiums

Premiums may not exceed 5% of the value of a saloon car and 7% of an SUV. This measure has been greeted as something that sounds great for everyday motorists, but actually may only impact the very top of the market. 

Lower Excesses

Policies will tend to be routinely offering lower excesses (but higher premiums). Motorists will still be able to select a higher excess voluntarily to benefit from lower premiums overall.

Ready to chat with
a specialist?

Get started

You may also be interested in

Behavioural finance

Behavioural finance: the psychology of investing

Behavioural finance theory suggests we make decisions based on emotions rather than logic. Understanding it could help you make better investment decisions

Read more
The benefits of a financial second opinion

5 benefits of a financial second opinion

In this article, we explore the five key benefits of a financial second opinion and why a fresh perspective could be just what you need.

Read more
questions to ask a financial adviser

7 Questions to ask a financial adviser

We look at the key questions you should ask a financial adviser before hiring them and one important question you need to ask yourself.

Read more
Time is running out to top up your UK State Pension

Time is running out to top up your State Pension

Time is running out to top up your State Pension. Here is everything you need to now about State Pension top-ups.

Read more