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Secrets Behind Car Insurance In Dubai

Written by Huma

Many car insurance companies are claiming to have transparent auto insurance policies but how transparent they are is the real question.

But don’t worry BuyAnyInsurance is here to pull the curtains up and reveal all those beneficial secrets that will be lucrative for your car insurance needs and for your pocket in the long run.

The mandatory requirement of getting your cheapest car insurance in the UAE involves certain determinants, namely car model and the driver’s age. However, some other hidden factors can make you more aware of your car requirement, which can have a huge impact on your auto insurance premium.

Let’s talk about these secrets involving car protection policies:

Secret# 1

First Driving License Origin

As we have discussed the criteria for calculating the car premium in our previous blogs, another hidden option that many car insurance providers use is the origin of your first driving license.

For an instant, depending upon which auto protection policy you have, the following scenarios are common.

  1. If you have your first driving license from the countries like Egypt, India or Iran then you have to pay much higher car premium.
  2. According to our expert view, in the UAE a particular auto insurance company charges up to 65% more for customers who obtained their first driver’s license from one of the above-mentioned countries.

Always get an idea about your car premium if your first driving license belongs to another nation.


Know the Place For Car Registration:

Where is your car registered?

You’d be wondering why this should make a difference. Well, we must say many auto insurance providers are always looking at this factor whenever you visit them.

Although you can get the cheapest car insurance in UAE. Still, the real impact on your overall monthly car premium depends on where your car is registered first.

  1. If your car is registered in Abu Dhabi, then start counting your money to pay more premium as it cost a driver, 25% more to insure a car.  
  2. Most often, car insurance in Dubai, Sharjah, and Ajman will be lower in comparison to Abu Dhabi, Al Ain, Fujairah.


Rent a Car:

It’s a light bulb moment for the drivers living in Dubai to hire a car.

Many people who are expats/visitors or preferred to get a rented car for long drives in order to give a rest to their owned vehicles and avoid the expense of wear and tear their car can bear on long trips. Also you can get cheapest car insurance in UAE in the form of rental insurance.

Therefore renting a car has its own beneficial secrets;

  1. You save your car from extra mileage and kilometer.
  2. Car hire also means that now only the insurer will be responsible for covering the expense of renting a car
  3. You rent a car at a fixed price, sometimes with an option to decide the duration of car rental for 5 days to 2-weeks.


Claims & Driving History:

For car insurance representatives, your driving age and experience are the golden areas of determining your car premium price. At the age of 25, you can avail of cheapest car insurance in UAE.

  1. If a driver has a one-year driving experience then he/she might end up paying more than 18%
  2. Your number of experience/skills in driving also has an impact on claims discount that you haven’t claimed yet.
  3. No-Claim Discount are those where a driver who each year drives without getting into an accident.
  4. Then his/her renewed car insurance premium will decrease by up to 5 to 20%, in case of claiming those discounts.


Buying Multiple Car Insurance

Owner of Two cars? Wow, you must be rich.

Jokes apart, no matter if you own two or more cars, everyone wants to save money with the cheapest car insurance in UAE.

So instead of getting your two-car insured separately, you can now buy both cars in bulk.

Many auto insurance firms are giving discounts to clients who have multiple cars. Avail this opportunity to save on your insurance premium upfront.


Enhance The Car Coverage/ Excess

See the big picture with small cars needs.

A tip to be noted is comprehensive/full excess car insurance policy, where you get the protection on minor items like the windscreen, dent in a bonnet, bumper, etc. are expensive. These are great or new and expensive cars. Comparatively, they are needlessly expensive for old and dented cars.

If your car is one collision away from being written off, then third-party liability is better for you.

You can save more money in the long run compared to your standard insurance.

  1. The advantage of getting high excess that you get better rates.
  2. Also, you can also avail of more quotes from car insurance groups.


BuyAnyInsurance is not only providing affordable insurance companies and car quotes comparison. Their blogs also reveal those secrets that are essential to know before buying any car insurance.

FAQ’s about auto-protection secret costs

1. Why these secret costs are hidden?

Ans) These costs are kept secret for various reasons like;1. When providers know if the clients get an idea about them beforehand then clients can add modified benefits at a fixed cost 2. It should be noted that many of these policymakers, initially give reasonable car premium (depending upon the car you have) 3. They keep some hidden charges under the rug and pull them up when they think it the right time to trap more money from their clients.Therefore, beware of them.

2. Can these Hidden costs Affect client-provider relationship?

If these secret costs directly influence the client’s monetary status and car requirement then yes it does spread bad air among them. Hidden elements in the auto protection terms and conditions can be a little annoying and create a sense of betrayal for client and provider relationships.

3. How do I claim a non-fault accident in UAE?

You will need the following documents to claim a non-fault accident in UAE-A police report-Your car’s registration document-If you have any car modifying certificate-Driving license (your and the other driver’s)-Filled insurance claim forms

What happens if you hit someone with your car in UAE?

No matter either you have caused a huge damage or not, you have to stop after hitting someone with your car! Failure to do so can result in a heavy fine of AED500. 

What is the hit and run fine in UAE?

You will have to pay AED25,000 as fine for hit and run in UAE.

What 4 characteristics affect your car insurance rates?

Factors that may affect your car insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose. These factors may include things such as your age, anti-theft features in your car and your driving record.

How can you decrease your insurance rates?

-Increase your deductible-Check for discounts you qualify for-Compare auto insurance quotes-Maintain a good driving record-Participate in a safe driving program-Take a defensive driving course-Explore payment options-Improve your credit score

What factors are most important for car insurance rates?

-Age is a very significant rating factor, especially for young drivers-Driving history-Credit score-Years of driving experience-Location-Gender-Insurance history-Annual mileage

Related Articles:

Calculate Car Insurance Premium Online in the UAE – BuyAnyInsurance

An Extensive Guide to Compare Car Insurance Prices in Dubai

Best Companies that provide Car Recovery in Sharjah

Originally published Oct 14, 2019 13:41:31 PM, updated May 06, 2024

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