Car Insurance Dubai

Car insurance in Dubai is not just a legal requirement but a necessity for your vehicle and peace of mind on the road. With various options available, including third-party and comprehensive coverage, you should first analyse your needs and the factors influencing insurance costs. Here is all you need to know about motor insurance in Dubai.

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Updated 13 August 2026Car Insurance

Why is it Mandatory to Have Motor Insurance Dubai?

Car insurance became mandatory in Dubai in the early 2000s. Under Federal Law No. 21 of 1995 (amended by Federal Law 43 of 1999), you cannot drive an uninsured vehicle. Driving without valid vehicle insurance in Dubai can result in a hefty traffic fine and black points. At times, it can lead to the confiscation of your vehicle.

What Types of Car Insurance in Dubai Can You Buy?

While there are two main types of vehicle insurance in Dubai — third-party and comprehensive car insurance — what you should choose entirely depends on the type of car you own and the area you live in.

Third Party Car Insurance	Comprehensive Car Insurance
Since this is the most basic form of motor insurance coverage, it is suitable for those of you with budget vehicles or old vehicles.	As a more advanced insurance cover, it is more suitable for expensive, performance-driven vehicles. This type of insurance policy is often bought by residents in Downtown Dubai, Deira, Bur Dubai, Dubai Marina, Palm Jumeirah, Arabian Ranches, Jumeirah Lake Towers, and Al Barsha.
Check Premium Now	Check Premium Now

An Overview of Vehicle Insurance in Dubai

Good car insurance in Dubai is more than just a legal requirement — it is a comprehensive cover that offers on-the-road and off-the-road protection to you and your vehicle. Here are the salient features and benefits of comprehensive car insurance in Dubai.

Features and Benefits	Description
Third-Party Liability Cover	Financial and legal protection against third-party liabilities
Compulsory under RTA Law	Driving without a valid car insurance policy in Dubai can lead to — Traffic Fine - AED 500 4 black points against your driving licence Up to 7 days of vehicle confiscation
Repair Types	There are 3 ways you get your vehicle repaired — Agency Repair - At the authorised manufacturer centre for the first 2 years when your vehicle is brand new. Premium Garage - This repair service is available from the 3rd year onwards. You would need approval from the 7th year. Garage - Get your vehicle repaired at local professional garages, starting from the 7th year after the purchase date.
Medical Expense Cover	Covers medical expenses for you and the passengers after an accident
Roadside Assistance	This is a 24/7 support facility available in insurance plans and offers services like flat tyre replacement, battery boost service, towing service, and fuel delivery

Best Car Insurance in Dubai

Policybazaarinsurance.ae is a one-stop portal that hosts the top RTA-approved insurance providers in the Emirate. The Dubai car insurance policies on our platform offer you maximum coverage at an affordable premium. We have curated a list of the top car insurance companies in Dubai.

Insurance Company	Third-Party Car Insurance*	Comprehensive Car Insurance*
Sukoon Insurance	AED 630	AED 1,470
Watania Takaful Insurance	AED 630	AED 1,575
Tokio Marine Insurance	AED 735	AED 1,801
Alliance Insurance	AED 788	AED 1,365
RAK Insurance	AED 639	AED 1,523
Salama Insurance	AED 651	AED 1,680
GIG Gulf Insurance	AED 738	AED 1,523

*Disclaimer — The prices mentioned above are for the Honda City EX 1.5L, 2017 model and for reference only. Actual premiums may vary.

Factors Affecting Car Insurance Price in Dubai

Here are the factors that tend to affect car insurance costs in Dubai —

Factors	Details
Vehicle’s Age and Condition	An older but well-maintained car usually has a lower premium than a luxury or high-performance vehicle.
Driver’s Age	Younger drivers under the age of 25 are often perceived as unsafe drivers. The insurance premium is, thus, higher. With age and experience, the premium is lower.
Driving History	A clean driving record implies that you are a low-risk driver. Thus, the premium is reduced.
Claims History	If you file multiple claims, the insurance will see you as an unsafe driver. This can increase your insurance premium.
Geographic Location	In regions that are accident-prone, your motor insurance premium can go up.

How to Buy Car Insurance in Dubai Online?

You can easily buy the best car insurance in Dubai on Policybazaarinsurance.ae. Follow the instructions mentioned below —

Fill in the application form.
You will be taken to our car insurance Dubai quotes page.
Browse your options. You can easily compare up to 5 plans at a time.
Once you find the right plan, click on the premium to apply.
Follow the instructions as provided moving forward.

How to Save on Car Insurance Cost in Dubai?

Finding the right motor insurance in Dubai can take time, but these tips can help you choose the best plan for your needs —

Evaluate Your Needs - Identify what coverage your car requires.
Research Providers - Look into various insurance companies in Dubai on Policybazaarinsurance.ae.
Get Multiple Quotes - Obtain quotes from at least your top 3 insurance plans online. Comparing these quotes will help you find the most cost-effective option.
Focus on Local Providers - If you live in Dubai, concentrate on finding insurance companies specific to that area to streamline your search.
Check the Claim Settlement Ratio (CSR) - Review the CSRs of potential providers and understand which claims are frequently denied to gauge their reliability.
Review Coverage - Carefully examine what each plan covers and consider any necessary add-ons to ensure you have comprehensive protection for your vehicle.

Frequently Asked Questions

Which car insurance is the best in Dubai?

Some of the best car insurance companies in Dubai include Sukoon Insurance, Watania Takaful, GIG Gulf Insurance, Tokio Marine, and RAK Insurance.

Is car insurance a thing in Dubai?

Yes, motor insurance is a legal requirement in Dubai. You cannot skip it. Insurance is required at the time of Mulkiya renewal. Moreover, driving without insurance can lead to fines and other penalties.