Rise in car insurance premiums in the UAE

Along with the recovery in vehicle use, there has also been an increase in car insurance premiums.’s car division has seen an increase in rates offered by many car insurers in Dubai, which is no surprise. UAE auto insurers and the Insurance Authority took a pragmatic approach during the height of the pandemic in 2020: applying a “fewer vehicles = fewer claims = fewer premiums” logic to set minimum auto premiums. Getting back on the road means that some drivers will also start making claims again, and frequency of use and the cost of claims being two parts of the premium equation, it follows that we will also be returning to higher prices.

However, comfortingly, the increases we are seeing have been gradual and mostly applicable to “low cost/minimum premium” fonts. Overall, it’s important to note that despite these increases, we still haven’t returned to pre-pandemic prices. From 2020 to June 2021, the overall minimum premiums have decreased by 30%, while the increases currently observed are small and regular, around 10 to 15%. Speaking of money rather than percentages, the average premiums for comprehensive car insurance before the pandemic were around Dh1,700, whereas now they are around Dh1,300.

As the economy recovers, all industry sectors will experience rising prices and auto insurance is no exception. The good news is that as a regulated industry, these retakes are regular and responsive, just like good driving should be!

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