Having car insurance in the UAE is not just a mandate; it is to safeguard your everyday commute and ensure that you and your wallet remain untouched in case of any mishap on the road.

In 2026, car insurance in the UAE has evolved with digitalisation and smart technology. Hence, we have sorted everything for you to know about insuring your car in the UAE below.

Also read: Top 5 tips to protect your car from flooding in the UAE rain

Why do you need car insurance in the UAE?

If you want to drive a car in the UAE, it is a must to have it insured. Car insurance is one of the most crucial documents to drive a car on the road legally. To ensure that every car has third-party insurance coverage, the Road and Transport Authority and the UAE Central Bank have mandated car insurance across the UAE.

Since every car in the UAE needs to be RTA-approved for its health annually, most insurance policies provide coverage of 13 months. If a vehicle is found without a valid insurance coverage on the road, the driver can be fined up to 4 black points on the driving license or AED 500.

What type of car insurance is available in the UAE?

Car insurance is primarily divided into two categories: Comprehensive coverage and Third-Party Liability. The latter of these is mandatory, while a comprehensive coverage is attained by paying extra, depending on the add-ons you opt for.

1. Third-Party Liability insurance

A third-party insurance is the most basic coverage, which has been mandated by the RTA for every vehicle on the road. This insurance type covers the damages that your vehicle has caused to a third party/individual.

The third-party liability will not cover a single expense of your vehicle’s damage or your medical bills. Hence, it is preferable for older cars that hold less value and are nearing the end of their lifecycle.

2. Comprehensive insurance

Unlike third-party insurance, comprehensive insurance is a detailed coverage that covers everything from your medical bills to your vehicle’s repair costs. It also includes an IDV (Insured Declared Value), or minimum insurance value - in case your vehicle is beyond repair, the insurer pays the equivalent of your vehicle’s IDV.

Moreover, a comprehensive coverage also includes add-on covers like theft of your vehicle, natural damages like flooding, sandstorms, or fire. A comprehensive insurance coverage is suited for relatively new cars or luxury vehicles that are costly to repair, or cars on finance, as the lenders usually require comprehensive coverage to lend.

What are the car insurance add-ons?

Most car insurers also offer a long list of add-on coverage options, which can prove beneficial in certain situations. Some of these popular car insurance add-ons are as follows:

• GCC cover: The GCC coverage add-on usually extends your car insurance to neighbouring countries like Saudi Arabia or Oman. It is helpful for car owners who frequently travel abroad for work or road trips.
   
• Roadside Assistance (RSA): Roadside assistance coverage offers help in case of a breakdown. This includes 24/7 car towing service, flat tyre coverage, fuel delivery, jump starting the car, and more.
   
• Agency repair: This insurance add-on ensures that your car gets repaired at the official dealership only. However, most insurers do not provide this add-on for cars beyond 5 years of age.
   
• Loan car: The loan car add-on basically provides you with a replacement car so that your daily commutes do not get disturbed while your car gets fixed at the dealership.
   
• Off-road cover: It is a must-have car insurance add-on in the UAE. This covers the extensive damage to the car that might happen during off-roading or dune bashing. It is typically for the 4X4 owners.

How does a car insurance claim work in the UAE?

Applying for a car insurance claim in the UAE is a simple task. All you need to do is report the accident to your car insurer within 24 hours, and a surveyor will upload a case file post the police report, which you can track on the police website using a Dubai Police app or a Ministry of Interior app.

After the detailed report is uploaded online, the UAE system uses the Red and Green Report system.

• Red Report: It means that after the inspection, it was found that the accident was your fault. Your insurer needs to pay for the damages, and you lose your insurance excess/deductible, which is AED 250-1000.
   
• Green Report: It means that the accident was not your fault.

The claim report needs to be filed within 7 days of the accident, and it can only be uploaded online after the police report. Once done, the insurer will approve your claim at a dedicated garage and send your vehicle for repairs.

Tips for saving money on car insurance in the UAE

Since car insurance renewal is an annual process, there are multiple ways to save on your insurance premiums annually. Some of our pro tips are as follows:

1. Compare insurance: It is not mandatory to get your car insured from one company every year. Make sure to compare the premiums, value, IDV, and add-ons from other insurers. Also, make sure to ask for discounts before switching to a new company.

2. Use NCB: NCB or No-Claim Bonus is an annual discount that the insurer adds to your renewal, offering it as a reward for not claiming insurance for any repairs. The maximum NCB discount can be up to 50%, which can bring down the insurance premium substantially.

3. Increase excess: Excess/deductible is the amount that you pay annually, so that it can be transferred to a third party in case of your fault. If you are a confident driver and do not have a history of claiming insurance, you can increase the excess to AED 1,000 or even more. More excess means less insurance premium.

4. Non-agency repair: Switch to non-agency repair if you own an older car. Moreover, if you own a reliable car that can be repaired at a lower cost, the non-agency repair option will bring down the car insurance premium.

5. Remove unnecessary add-ons: Add-ons like GCC cover or tyre protect cover, etc, take up your insurance premium higher than usual. Drop the unnecessary covers to keep the costs in check.

Cars24 UAE says

Car insurance in the UAE has evolved from being just a piece of car documents to a smart financial coverage for car owners. It is not only a mandate, but it also ensures that after an accident, you do not feel any further loss in terms of recovery, repair of your vehicle, or in the process flow.

We at Cars24 Arabia advise you to always opt for a comprehensive insurance coverage for your car, and include the necessary add-ons as well.