One of the significant expenses of purchasing a car in the UAE is car insurance. The amount of the premium is highly dependent on the car type, vehicle value, age, engine, repair costs, driver profile, and coverage type.
The prices listed below are indicative and are not a guarantee of price, as each policy is unique and is based on the individual risk.
Average Cost of Car Insurance in the UAE
UAE drivers have two options for motor insurance – third-party liability insurance or comprehensive insurance.
Third-party insurance is for damage or injury incurred on another party. Comprehensive insurance covers your car from damages caused by accidents, theft and fire, depending on the coverage.
If you're buying a standard sedan, comprehensive insurance tends to cost about 1.5% to 3% of the vehicle's value, but that might not be the case for every car and driver.
Indicative Insurance Costs by Car Model
|
Car Model |
Third-Party Insurance/Year |
Comprehensive Insurance/Year |
|
Toyota Yaris |
AED 650–700 |
AED 1,260–1,800 |
|
Toyota Corolla |
AED 650–900 |
AED 1,300–2,700 |
|
Toyota Camry |
AED 675–900 |
AED 1,800–2,500 |
|
Toyota Fortuner |
AED 650–1,100 |
AED 2,500–4,400 |
|
Toyota Land Cruiser |
AED 700–1,100 |
AED 3,500–6,500 |
|
Nissan Sunny |
AED 650–850 |
AED 1,200–1,800 |
|
Nissan Altima |
AED 750–1,000 |
AED 1,600–3,000 |
|
Nissan Patrol |
AED 900–1,200 |
AED 2,200–8,000 |
|
Hyundai Elantra |
AED 650–900 |
AED 1,250–2,000 |
|
Kia Sportage |
AED 600–900 |
AED 1,300–2,500 |
|
Honda Civic |
AED 650–900 |
AED 1,350–2,200 |
|
Tesla Model 3 |
AED 550–800 |
AED 4,500–8,200 |
|
Tesla Model Y |
AED 650–900 |
AED 5,500–10,500 |
|
Range Rover |
AED 700–1,200 |
AED 3,500–7,000+ |
How the Price of Insurance Varies from Car to Car?
Insurers take into account the model of the vehicle and the following things.
Vehicle Value
Generally, the more expensive the car, the more expensive the comprehensive policy will be because the insurance company will have more to lose if the car is stolen or written off.
Hence, the premium of a Land Cruiser, Patrol or luxury SUV might be significantly higher than that of a Sunny, Yaris or economy car.
Repair and Parts Costs
Insurance companies take into account the repair costs of an automobile.
This is because some cars have easily available parts for replacements. More expensive parts may have to be imported, and more costly parts may be needed and require the services of a specialist technician to conduct repairs.
Engine and Vehicle Type
Risks for a small family sedan generally differ from a high-performance sports car or large SUV.
The premiums for large SUVs might also be higher on account of higher replacement value and repair expenses. The premium will be higher when the car is used off-road.
Safety and Technology
In today's vehicles, cameras, sensors, radar, and other advanced driver assistance technology are commonplace. These features can be safety enhancing, and can also make repairs more costly after a collision.
In the case of bumper damage with sensors, some calibration may be necessary to the bodywork.
Third-Party vs Comprehensive Insurance
The type of cover you decide on can make a greater difference to your insurance premiums than the specific insurance company you select.
|
Factor |
Third-Party Insurance |
Comprehensive Insurance |
|
Covers damage to others |
Yes |
Yes |
|
Covers your own accident damage |
No |
Yes |
|
Theft and fire protection |
Generally no |
Yes, subject to policy |
|
Natural-peril protection |
Generally limited/not included |
Depends on policy |
|
Annual cost |
Lower |
Higher |
|
Suitable for |
Older, lower-value cars |
Newer and higher-value cars |
The third-party premiums are usually less closely linked to the market value of your car, whereas the comprehensive premiums are much more dependent on the value of your car and also on repair exposure.
Insurance Cost of Popular Toyota Models
Toyota is still a popular car for UAE drivers, and insurance will cost significantly more between models.
A Yaris or Corolla will typically cost less to insure than a large SUV. According to recent market data, the price of comprehensive insurance for the 2024 Yaris is approximately AED 1,260, while the 2024 Corolla can be priced anywhere from AED 1,300 to AED 2,700.
The difference is more pronounced for larger vehicles. For full coverage, the price of a 2024 Land Cruiser can range from around AED 3,500 to 6,500, and a 2024 Fortuner can be priced around AED 2,500 to 4,400.
Insurance Cost of Nissan Models
The model and specification also have a huge impact on Nissan insurance costs.
Nissan Sunny Insurance is a relatively lower-priced model among Nissan's offerings, and recent market data indicates that the premium for comprehensive coverage for this model ranges from AED 1200 to 1800.
The Nissan Patrol, on the other hand, is quite pricier. Premiums are indicative and comprehensive and range from AED 2,200 to AED 8,000 due to the huge disparity in Patrol specifications, vehicle values, and risk profiles.
Owners of patrol vehicles who use them regularly on off-road vehicles should determine if the policy covers off-road use, or if comprehensive insurance assumes coverage for off-road use.
Insurance Cost for Electric Cars
Insurance costs may vary for EVs due to the type of battery, special components, and repair needs.
Tesla is a case in point. The latest estimates for a Model 3 comprehensive insurance range between AED 4,500 and AED 8,200, with Model Y prices estimated to start at around AED 5,500 to AED 10,500 for various insurance options and driver profiles.
But the insurance that can be applied to all EVs will not be the same. These are important: insurance company, battery technology, vehicle value, repair network, availability of parts.
What Factors Impact Your End Result Insurance Quote?
Two drivers of the same vehicle may be able to get different insurance quotes.
Insurers may consider:
- Experience of drivers and age
- UAE licence history
- Previous claims
- No-claims record
- Vehicle age and current market value
- Registration emirate
- Vehicle specification
- The number of miles or uses per year
- Repair options
- Deductible/excess
- Additional coverage
The latter can therefore make a significant difference even if the car does not change.
How to Reduce Car Insurance Costs in UAE?
You don't always have to opt for the most affordable policy to decrease the total cost of insurance. Rather, compare policies that have similar coverage.
Some simple measures can be taken:
- Get Several Quotes: Insurance costs for the same car may differ among insurers.
- Select the appropriate deductible: A higher deductible may lead to a lower premium, but ensure that you have the means to pay it if you make a claim.
- Review add-ons: Agency repair, roadside assistance, rental-car coverage, and off-road protection are other add-ons that can drive up the premium.
- Keep a clean driving record: A clean driving record can lead to getting better rates.
Look at the insured value: If full coverage insurance is chosen, verify that the insured value is a reasonable estimate of today's market value of the vehicle.
Is Comprehensive Insurance Worth It?
It is recommended to use comprehensive coverage on a new (financed or expensive) vehicle because replacing or repairing the vehicle by the owner may be very expensive.
If you're okay with having your vehicle covered in case of damage and your car is relatively old, with a low market value, third-party insurance might be more economical.
It will depend on the worth of the vehicle, your finances, and the risk you're willing to take.
Final Takeaway
It is not just the car model that's important; it's only one of the factors. The final price can vary from driver history to the value of the vehicle, cost of repairs, age of the vehicle, coverage types, and insurer underwriting.
When buying a used or new car, be sure to work out the car cost and estimate the annual insurance. This will provide you with a more accurate understanding of the overall cost of ownership of the car in the UAE.
