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9 Ways Car Insurance Trends are Changing in Dubai

Written by Umair

Motor insurance Dubai is changing rapidly in response to changing the behavior of buyers, innovations in technology and legal requirements in the UAE.

Trends in this industry were different previously, with limited options for the buyers.

However, this is fast-changing as insurance providers and insurance comparison websites respond to this change.

Various stakeholders, including insurance providers and buyers, could benefit greatly from the trends.


Is the front glass of the car covered in insurance? 

Yes! Usually insurance providers cover the windshield in the insurance policy.

What does car insurance not cover?

Car insurance does not cover mechanical repairs and regular breakdowns. Additionally, if anyone else is driving at your place, your insurance policy will not cover that. 

What is the meaning of excess in car insurance?

This is the payment that you would have to pay if you make a claim for your car and the insurance provider accepts this.

9 ways Car Insurance Dubai trends are changing

1. People prefer to buy online

Buying motor insurance Dubai online offers a great deal of flexibility and convenience with a plethora of options to choose from.

All you need to do is fill out an online form and the required documents to buy your policy online. Above all, the middleman is eliminated.

Consequently, buyers can also benefit from online comparisons in the form of savings.

You can read up on some Advantages Of Buying Insurance Online Over An Offline Broker

2. A rise in insurance comparison websites

Gradually but slowly, motor insurance Dubai comparison websites have seen significant growth as plenty of such websites have started appearing online. These websites help buyers compare the benefits and prices offered by different insurance providers keeping in mind certain factors.

For example, some factors include the car model, year, make, and model details.

Additionally, buyers can choose from comprehensive or third-party insurance for their vehicles and other coverages.

3. New job opportunities

Just as the demand for insurance services has started increasing, so has the demand for professionals who can deliver these services efficiently to the end buyer. Resultantly, positions such as Motor Claims Manager, Motor Claims Supervisor, Motor Insurance Underwriter, and Sales Advisor have seen increased opportunities.

This trend is set to provide increased employment opportunities to the UAE residents, provided they can meet the candidate requirements.

4. Greater benefits and mandatory coverage

Buyers can expect increased security and clarity of policy breakdown with maximum specified premiums to be charged.

The UAE has updated its rules and regulations regarding this.

Earlier, regulation lacked depth, with insurance providers offering lesser benefits and taking advantage of the lack of buyer knowledge.

5. Introduction of world-class insurance products

Interestingly, insurance providers are starting to offer new insurance products in the market too.

For example, AXA motor insurance Dubai offers Innovative and best-in-class products.

It provides a lot more than just payment of insurance claims.

It also comprehensively covers all the risks and troubles one may face on the road.

Also, banks and insurance companies are collaborating to provide the best products.

For instance, the Insurance Distribution Partnership Agreement has been signed with FGB – one of the leading banks in the UAE, and RSA – a leading provider of insurance services in the region.

In other words, the collaboration is done to capture and analyze customer demand and work to introduce innovative products that meet clients’ evolving needs and requirements.

6. New techniques to lower insurance cost

Increasingly, people are demanding cheap motor insurance in Dubai.

Buyers are even using several interesting techniques to lower their overall insurance costs.

Interestingly, buyers are using several strategies to lower their costs which include:

  • Considering the type of car to be bought
  • Shopping around for cheaper car insurance
  • Usage of inbuilt alarm systems and anti-theft devices in the car
  • Reducing car mileage
  • Increasing excess
  • Having a good track record
  • Asking about discounts
  • Insuring in bulk
  • Considering third-party insurance

These techniques reduce costs considerably through smart decision making.

7. Increase in popularity of replacement vehicle as an insurance add-on

Statistically, 43% of motor insurance Dubai buyers who bought add-ons between April and the end of June chose replacement vehicle car coverage at an average cost of AED 174.

This shows that this add-on is becoming quite famous, and perhaps this is the feature most insurance companies should focus on.

Similarly, an analysis of car insurance comparison portals showed that 20% of UAE car insurance buyers selected at least one add-on during the second period.

Change in regulation can be said to be one reason for this change.

Through this change, the minimum levels of cover that mandate a replacement car for anyone not at fault in an accident were introduced by UAE’s Insurance Authority in January 2017.

8. More competition in the market

According to Orient Motor Insurance Dubai, competition in the insurance marketplace intensified and gained momentum in 2018.

However, the UAE insurance market is generally expected to show better results due to carrying forward unearned premium reserves from the past year.

Every insurance company is fighting hard to retain and improve its market share.

In case you are confused with your options, visit our website for easy comparison.

9. Rising demand for offers and discounts

Limited period offers and discounts on all or some of the insurance products are quite popular among buyers.

These discounts usually take a few hundred dirhams off car insurance premiums.

Understandably, it is because of this popularity that some insurance comparison websites have started offering No- Claims discounts, Cashback options, and other attractive promotional offers.

This sum up new emerging trends for motor insurance in Dubai.

We hope that these changing trends for motor insurance in Dubai will help you to get a better understanding of this industry.

Have you noticed any interesting insurance trends yourself too?

Let us know in the comments

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    Originally published Sep 09, 2020 12:19:00 PM, updated Jun 06, 2024

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