Driving in Dubai comes with a lot of perks — smooth highways, luxury rides, and stunning views. But whether you’re a resident, expat, or just renting a car, car insurance in Dubai is not optional — it’s mandatory.
With changing regulations and new tech-savvy insurers popping up, navigating car insurance in 2025 can feel overwhelming. This guide will help you understand the types, costs, coverage options, and how to choose the best plan for your needs.
🚘 Is Car Insurance Mandatory in Dubai?
Yes. The UAE law requires every vehicle to have at least basic third-party liability insurance to be legally driven on the road.
🔍 Types of Car Insurance in Dubai
There are two main types of car insurance you can get in Dubai:
1. Third-Party Liability Insurance (TPL)
- Covers: Damage to other vehicles, property, or people caused by your car.
- Does NOT cover: Damage to your own car.
- Best for: Older vehicles or drivers on a tight budget.
2. Comprehensive Insurance
- Covers: Damage to your own car and third-party property.
- Includes theft, fire, weather damage, vandalism, and often roadside assistance.
- Best for: New, luxury, or financed vehicles.
💡 New in 2025: What’s Changed?
- AI-based pricing models offer more accurate quotes based on driving history.
- Telematics-based policies track your driving behavior via apps or car sensors — safer drivers get discounts.
- Many insurers now offer instant claim filing via mobile apps with photo/video uploads.
- Green vehicle discounts are now available for electric and hybrid cars.
💰 Car Insurance Cost in Dubai (2025 Averages)
| Vehicle Type | Third-Party (AED/year) | Comprehensive (AED/year) |
|---|---|---|
| Sedan (Toyota, Nissan) | AED 700–1,200 | AED 1,500–2,500 |
| SUV (Jeep, Prado) | AED 1,000–1,500 | AED 2,000–3,200 |
| Luxury Car (BMW, Benz) | AED 1,800–2,800 | AED 3,500–6,000+ |
| Supercars (Ferrari, Lambo) | N/A | AED 10,000–25,000+ |
Note: Prices vary based on car age, driver’s age, nationality, and claim history.
📝 Documents Needed to Buy Car Insurance
- Emirates ID
- Valid UAE driving license
- Vehicle registration card (Mulkiya)
- Passport copy with visa page (for expats)
- No-claim certificate (optional, but can lower your premium)
🛡️ Add-On Covers You Might Want
- ✅ Roadside assistance
- ✅ Off-road coverage (for 4×4 vehicles)
- ✅ Personal accident cover
- ✅ Car replacement during repair
- ✅ GCC coverage (if you travel outside UAE)
🏆 Best Car Insurance Providers in Dubai (2025)
- Oman Insurance Company (bought by Sukoon)
- AXA Gulf (now part of GIG Gulf)
- Orient Insurance
- RSA Insurance
- Dubai Islamic Insurance (AMAN)
- Emirates Insurance Co.
- Yallacompare & Policybazaar UAE – for comparing quotes instantly
✅ Tips to Save Money on Car Insurance in Dubai
- Compare quotes online before buying
- Ask for a no-claim bonus if you have a clean record
- Opt for higher deductibles to lower your premium
- Bundle with home/health insurance if available
- Drive safe — telematics apps can reward you with discounts
🛠️ What to Do in Case of an Accident?
- Call Dubai Police (999) to report the incident.
- Use the Dubai Police app to file minor accident reports.
- Get the police report, which is mandatory for claims.
- Inform your insurer immediately and follow their claim process.
- Take photos/videos of the damage for faster processing.
