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Your Guide to Calculating the Cost of Car Insurance in Abu Dhabi

Car insurance in Abu Dhabi

Trying to find the right car insurance in Abu Dhabi that fits your needs can be challenging. Insurance agreements are complex and cost varies across car insurance companies. If you are a first-time policy buyer, it helps to have some background information so you can make an informed decision. Read on for guidelines and tips from the experts at ServiceMarket to easily calculate the cost of car insurance in Abu Dhabi.

The UAE Insurance Authority (IA)

Car insurance pricing and mandatory minimum insurance policies in Abu Dhabi are set by the UAE Insurance Authority (IA). The IA also sets certain benefits that you must receive from your car insurance provider. For example, the IA makes it mandatory for your car insurance provider to offer you an alternative vehicle for transportation if you were in an accident that was not your fault. Insurance premium cap rates are set by the IA based on the capacity of the vehicle’s engine horsepower. The IA also sets loose guidelines for how insurance premiums are calculated. For example, an insurance broker can offer pricing based on experience with customers, as well as more technical and evidentiary reasons not solely based on experience.

How is your premium calculated?

Some factors insurance companies can take into consideration when calculating your premium rate include:

  • The type of vehicle
  • The coverage you requested
  • The current value of your car in the market
  • The age of your car
  • Your experience
  • Your age
  • The number of years you have been driving
  • Your accident and fines history
  • The deductible

If you are younger than 25, or recently got your license, or have a bad driving history, your premium will likely higher. Owners of sports cars and modified vehicles can also face higher premiums. In fact, vehicles modified outside the factory get charged an additional deductible up to 20% of the maximum compensation. On the other hand, the IA guidelines also require insurance brokers to lower premiums for drivers who have never made an insurance claim or been in an accident.

What are the ballpark prices?

According to the IA, there are minimum and maximum insurance premium prices set for different types of vehicles. Starting with your average 4-cylinder sedan, the third-party liability insurance policy must have a minimum premium price of Dh750 and a maximum price of Dh 1,300. Next, the 6-cylinder sedan has a minimum premium cost of Dh850 and a maximum premium price of Dh1,400. Followed by the 8-cylinder sedan which has a minimum premium cost of Dh950 and a maximum cost of Dh1,600. Finally, 8+ cylinder cars have a minimum premium cost of Dh1,300 and a maximum premium price of Dh2,250.

Other than premiums cap rates, you should know that car insurance premiums for the average vehicle will also depend on the value of your car. Keep in mind that this is only an estimate as other factors will be taken into consideration when calculating your actual premium rate.

Since insurance prices are flexible, it is best to shop around before choosing a car insurance company in Abu Dhabi. Start the process with ServiceMarket, where you can get free quotes from the best car insurance companies. If you are looking for certified used cars in Abu Dhabi, then be sure to check out 

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