Car Insurance in the UAE: Third-Party vs Comprehensive, Prices & FAQs (2026)

Quick answer: Car insurance is compulsory in the UAE. Federal Decree-Law No. 14 of 2024 on Traffic says a vehicle cannot be registered or renewed unless it is insured with a UAE-licensed insurer. The minimum is third-party liability cover. Comprehensive cover adds damage to your own car. Both use a standard policy wording and price bands set by the regulator, now the Central Bank of the UAE (CBUAE).

This guide covers what each type of motor insurance includes, what the regulated prices are, what is excluded, how claims work, and how to compare car insurance quotes in the UAE. Compare motor insurance quotes on insuringU.

Car insurance in the UAE: key facts

Compulsory: yes, for every registered vehicle (Federal Decree-Law No. 14 of 2024, Article 19, in force since 29 March 2025).
Policy wording: standard across insurers. There are two unified policies: third-party liability, and loss & damage (comprehensive). They were set by Insurance Authority Board Decision No. 25 of 2016 and are now administered by the CBUAE.
Third-party property damage limit: AED 2,000,000 per accident.
Third-party death and injury: no upper limit.
Third-party premium bands: for a private saloon, AED 750–2,100 depending on the number of cylinders.
Comprehensive premium: at least AED 1,300 for a saloon and AED 2,000 for a 4WD. The maximum is 5% of the car's value for a saloon and 7% for a 4WD.
No-claims discount: up to 20% of the minimum premium after three claim-free years.
Reporting accidents: report to the police or the approved body within 3 hours.

What is the difference between third-party and comprehensive car insurance?

Third-party liability (TPL) pays for the harm you cause to other people. That means their vehicles and property up to AED 2 million per accident, and death or bodily injury to others with no upper limit. It also pays ambulance costs up to AED 6,770 per injured person. It does not pay to repair your own car. Cover for you as the driver and for your passengers is not included by default. It is added as a personal accident endorsement.

Comprehensive (loss & damage) includes everything third-party cover pays for, plus damage to or loss of your own vehicle. That covers collision, overturning, fire, explosion, lightning, theft, malicious damage by others, and damage while the car is being transported. If repairs would cost more than 50% of the car's value, the car is treated as a total loss.

Common add-ons to compare

Agency repair: repairs at the brand's authorised dealer workshop. It is usually offered only for newer cars. The age limit varies by insurer.
Natural perils (flood, storm, hail): not included in the standard comprehensive wording unless you buy it as an add-on. After the April 2024 floods, check this first.
Off-road cover: excluded unless you buy it as an add-on. This matters for 4WD owners who drive in the desert.
Oman cover: you can extend your UAE policy to Oman. The alternative is an Orange Card, which is third-party-only cover for driving across the border.
Personal accident for driver and passengers: the regulated add-on premium is up to AED 120 for the driver and AED 30 per passenger.
Roadside assistance and replacement car: commercial extras. The terms vary by insurer.

How much is car insurance in the UAE?

The CBUAE's motor tariff sets the price range. Insurers price within it according to the car and the driver.

Third-party only, private vehicles (AED per year)

4 cylinders: saloon 750–1,300 · 4WD 1,000–1,750
6 cylinders: saloon 850–1,400 · 4WD 1,050–1,900
8 cylinders: saloon 950–1,600 · 4WD 1,100–1,950
More than 8 cylinders: saloon 1,300–2,100 · 4WD 1,200–2,150

Comprehensive, private vehicles

Saloon: at least AED 1,300, and at most 5% of the vehicle's value.
4WD: at least AED 2,000, and at most 7% of the vehicle's value.

Within these bands, the price depends on the car's value, type and engine size, the driver's age and licence history, your claims record and the add-ons you choose. Discounts are allowed of up to 20% for three claim-free years, up to 30% for fleets and up to 25% for green vehicles. Motor insurance is subject to 5% VAT.

What does UAE car insurance not cover?

Driving under the influence of alcohol or drugs.
Driving without a valid licence, or with an expired one.
Floods, storms and other natural disasters, unless you bought that add-on.
Off-road driving and driving outside the UAE, unless you bought those add-ons.
War and civil unrest, damage to tyres alone, wear and tear, and indirect loss.

With third-party cover, the insurer still pays the injured party. It can then recover that money from you if the accident involved drink or drug driving, a deliberate act, an unlicensed driver, unauthorised use or false information on your application.

How do you make a car insurance claim in the UAE?

Report the accident. Report it within 3 hours. In Dubai, use the Dubai Police app. In Abu Dhabi and most northern emirates, use the SAEED service or the MOI app. In Sharjah, use Rafid. For serious accidents, call 999.
Get the police report. Insurers need the report to process any claim. It also sets out who was at fault.
Notify your insurer. Send the report, photos, your driving licence, the vehicle registration (mulkiya) and your policy details.
If you were not at fault, you usually claim from the other driver's insurer. That insurer pays for your repairs and a replacement car while yours is being repaired.

How to compare car insurance quotes in the UAE

Compare the same things: repair type (agency or garage), the excess (deductible), natural-perils cover, Oman cover and personal accident cover.
Check the insured value of the car. Too low and you will be under-compensated after a total loss. Too high and you pay more premium for nothing.
Declare past claims honestly. Non-disclosure is a common reason claims are refused.
Renew before your registration expires. You cannot renew your registration without insurance.

Get motor insurance quotes on insuringU. Tell us the car and the cover you want, and compare what UAE insurers offer.

Frequently asked questions

Is car insurance mandatory in the UAE?

Yes. Under Article 19 of Federal Decree-Law No. 14 of 2024, a vehicle can only be registered or renewed if it is insured by an insurer licensed in the UAE. Third-party liability is the legal minimum.

What is the cheapest car insurance in the UAE?

Third-party-only cover is the cheapest option. It starts from AED 750 a year for a 4-cylinder saloon under the regulated tariff. It does not pay for damage to your own car.

Does car insurance in the UAE cover flood damage?

Not under the standard comprehensive policy. Flood, storm and other natural perils need to be added as an add-on. Check for it by name when you compare quotes.

Do I need an Orange Card to drive to Oman?

Your UAE policy covers you only in the UAE unless it is extended. You need either an Oman extension on your UAE policy or an Orange Card. The Orange Card is third-party cover you can buy from your insurer or at the border.

What is agency repair?

Agency repair means your car is fixed at the manufacturer's authorised dealer workshop. Most insurers offer it only on newer cars, usually the first few years from registration. The age limit varies by insurer, so compare it.

Does car insurance cover the driver and passengers?

Not automatically. Personal accident cover for the driver and passengers is an add-on. The regulated premium is up to AED 120 for the driver and AED 30 per passenger.

Can I keep my no-claims discount if I switch insurers?

Yes. Insurers can give up to 20% off the minimum premium after three claim-free years. Ask your current insurer for a no-claims certificate and give it to the new one.

How do I claim if the accident was not my fault?

Get the police report showing the other driver at fault. Then claim from their insurer. It pays for your repairs and usually a replacement car while yours is being fixed.

Can I renew my car registration without insurance?

No. A valid UAE insurance policy is required to register a vehicle or renew its registration.

Related guides

Sources

Last reviewed: 29 September 2026. This guide is general information, not advice on a specific policy. Terms, prices and add-ons vary by insurer, so always read the policy wording before you buy. insuringU is a brand of Affinity International Insurance Prices Comparison L.L.C., Dubai trade licence 1352749, licensed by the Central Bank of the UAE as an insurance price comparison website.