Car insurance is compulsory for drivers in the UAE and many people sign on to policies which are expensive and unaffordable. The main reason for overpaying on your insurance policy is committing to a plan before shopping around and comparing quotes. Drivers can choose between a comprehensive or a third-party insurance policy to cover themselves while on the road. There are also several factors which affect your policy and may make it expensive.

Factors which increase insurance costs:

Comprehensive vs. Third-party

Comprehensive insurance covers your vehicle and your medical costs as well as damages to any other vehicles involved in an accident which is caused by you. Third-party insurance only covers the other vehicle/s involved in an accident which is caused by you. Third-party insurance is cheaper; however, you may end up having to cover payment for your own vehicle from your pocket in a situation where your car is damaged.

The type of vehicle you are insuring

Drivers of SUVs are more likely to pay a higher insurance premium than drivers of a saloon type car. Comprehensive cover of an SUV costs about AED 2000 while saloon cars a minimum of AED 1300 is required. High value and vintage cars are definitely more expensive to insure, finding a tailored insurance plan for these types of vehicles is recommended to ensure that they are covered for their full value.

Additional extras

Adding on extra benefits such as roadside assistance and off-road insurance can also increase your premiums. The benefit of off-road coverage, however, is necessary if you are planning on going dune bashing (a popular activity in Dubai), for which damages to your vehicle will not be covered unless you have this specific benefit.

Finding the right insurance for your vehicle does not need to be overwhelming or stressful, whether you are a local resident or expat. You will need to consider all of the factors that impact your premiums and know what to look out for when asking for a quote from an insurance company. It is recommended that drivers get a few quotes from reputable insurance companies before signing up hastily. Compare Insurance offers an easy platform that gives you a variety of insurance quotes within minutes, so that you can compare plans from most reputable companies in Dubai from the comfort of your home and save money on your car insurance.