Did you know that car insurance costs in the UAE have been rising by an average of 15% since January? That’s right, folks! That news took us by surprise too. How did that happen, you ask? Well, remember when the UAE Insurance Authority introduced minimum premiums end of last year. We are suffering its consequences now. Read on to find out what else these rules entailed.
According to the national newspaper, UAE drivers are paying up to 40% more for car insurance than they were last year. Here’s a summary of how these rules have affected car owners in the UAE.
- Comprehensive insurance premiums for saloon cars are set at a minimum of AED 1300 and for SUVs at AED 2000. That’s not all though! The minimum cap for money to be paid out following an accident also increased.
- Guess who suffers the most under these rules. That’s right! The SUV owners. Particularly those buying comprehensive insurance for a car valued at under AED 50,000. Compared to last year, premiums for this category have increased by a whopping 40%!
- On the other hand, drivers of saloon cars with a value of less than AED 50,000 are paying 9.53% more for their comprehensive policies.
- The number of people opting for third-party insurance policies instead of comprehensive insurance packages has doubled. No surprises there, because it looks like many UAE residents have been priced out of adequate car insurance coverage.
Worry not though, whether you have a new or a used car, there are still plenty of third-party services you can use to get your vehicle insured. Experts advise not to simply accept the price given to you by your current insurance company when a policy is up for renewal. Head over to ServiceMarket to get multiple quotes and the best rates. There might be a silver lining to all this, who knows!
Looking to buy used SUVs and sedans valued over AED 50K? Check out CarSwitch’s extensive inventory of used cars for sale in Dubai, UAE.
