Car Insurance Calculator UAE — Get Your Estimated Premium Instantly

A car insurance calculator is an online tool to find the car premium amount payable for your car insurance.

What Does Car Insurance Cost in the UAE?

Car insurance in the UAE typically costs from AED 500-AED 900 for basic third-party liability(TPL) and AED 1200 to AED 4000 for comprehensive coverage (T&C apply)

What Does Car Insurance Cost in the UAE?

Car insurance in the UAE typically costs from AED 500-AED 900 for basic third-party liability(TPL) and AED 1200 to AED 4000 for comprehensive coverage (T&C apply)

Typically, car insurance coverage in the UAE is two types.

Third-party Liability (TPL) Cost Coverage

The average cost of a third-party car insurance is around 500-1000 a year.

The insurance covers only damages caused to other people or their property.

It does not pay for any damage that occurred to your own car.

Comprehensive Cost Range

The cost of comprehensive car insurance in the UAE ranges from AED 1200-AED 4000+, depending on the car make, model, and usage.

Does Car Insurance Cost Differ by Emirate?

Central Bank of the UAE decides a minimum tariff for car insurance premiums in the UAE, so the cost of car insurance remains more or less the same in each Emirate.

Insurers can price risk where the car is driven. Claim frequency is normally higher in Dubai, Abu Dhabi or Sharjah than in the other Northern Emirates.

It is recommended that you compare insurance quotes from multiple insurers.

Car Insurance Cost by Vehicle Type (Official CBUAE Tariff Bands)

Car insurance costs are not officially split by luxury or economy cars but they are dependent on vehicle type and engine size.

Source: Insurance Authority Board Decision No. 30 of 2016 – Motor Vehicle Insurance Tariffs.

Third-Party Liability Insurance Tariffs (13-Month Policy)

Vehicle Type	Category	Minimum Premium (AED)	Maximum Premium (AED)
Salon – Private	4 Cylinders	750	1,300
	6 Cylinders	850	1,400
	8 Cylinders	950	1,600
	More than 8 Cylinders	1,300	2,100
Salon – Commercial	4 Cylinders	750	1,350
	6 Cylinders	850	1,500
	8 Cylinders	950	1,600
	More than 8 Cylinders	1,300	2,250
4WD – Private	4 Cylinders	1,000	1,750
	6 Cylinders	1,050	1,900
	8 Cylinders	1,100	1,950
	More than 8 Cylinders	1,200	2,150
4WD – Commercial	4 Cylinders	1,000	1,750
	6 Cylinders	1,050	1,900
	8 Cylinders	1,150	2,100
	More than 8 Cylinders	1,350	2,450

Pickups, Trucks, Tankers & Buses (Third-Party)

Vehicle Type	Category	Minimum Premium (AED)	Maximum Premium (AED)
Pickup & Truck	Up to 1 Ton	1,000	1,750
	Up to 2 Tons	1,000	1,800
	Up to 3 Tons	1,150	2,100
	More than 3 Tons	1,300	2,300
Trailer	With Tractor Head	1,200	2,150
Water Tanker	Up to 2,000 Gallons	1,450	2,250
	More than 2,000 up to 5,000 Gallons	1,400	2,500
Water Tanker Trailer	With Tractor Head	1,500	2,500
Fuel Tanker	—	2,000	3,300
Bus	Up to 14 Passengers	1,100	1,900
	Up to 26 Passengers	1,800	3,250
	Up to 56 Passengers	2,150	3,850

Equipment, Heavy Vehicles & Motorcycles (Third-Party)

Vehicle Type	Category	Minimum Premium (AED)	Maximum Premium (AED)
Light Equipment (Dumper/Agriculture)	—	1,000	2,500
Light Equipment (Forklift)	Private	1,300	2,500
Light Equipment (Forklift)	Commercial	1,300	2,500
Heavy Vehicle	Private	1,600	3,000
Heavy Vehicle	Commercial	1,600	3,000
Motorcycle	Up to 200cc	550	1,150
Motorcycle	Above 200cc	600	1,150

Comprehensive Insurance Tariffs (Loss & Damage + Third-Party)

Vehicle Type	Maximum Rate	Minimum Premium (AED)	Driver Cover (AED)	Passenger Cover (AED)
Salon	5%	1,300	30	120
Four-Wheel Drive	7%	2,000	30	120
Pickup & Van (Up to 3 Tons)	7%	1,550	30	120
Heavy Trucks (Over 3 Tons)	9%	2,000	30	120
Bus (Up to 15 Seats – Private)	7%	1,900	30	120
Bus (Up to 15 Seats – Commercial)	7%	1,950	30	120
Bus (Up to 26 Seats – Private)	7%	2,350	30	120
Bus (Up to 26 Seats – Commercial)	7%	2,400	30	120
Bus (Up to 56 Seats – Private)	7%	2,400	30	120
Bus (Up to 56 Seats – Commercial)	7%	2,500	30	120
Equipment	7%	2,750	30	120
Motorcycle	5%	1,050	—	120

How Is Car Insurance Calculated in the UAE

The formula to calculate the car insurance premium is:

Car Insurance Premium= (IDV x Premium rates + add-on rates) – (no claim bonus)

When calculating the car insurance premium amount, the general rule is that if your car costs more than three hundred thousand AED, the insurance will be 2.75% of your car’s original value.

If your car costs between 100,000 AED and 300,000 AED, the insurance amount will be 3% of the car’s original value.

However, if the car’s worth is less than 100,000, the insurance amount will be 3.25% of the car’s original value. 

Example: – How To Calculate Car Insurance Premiums For Your Car?

The car insurance calculation varies with different variants; there is no standard rule for the exact amount of premium to be the same for every motor car.

It differs from vehicle to vehicle and situation to situation. But the basic formula to calculate the premium is the same for every vehicle as mentioned below:

Car Insurance Premium= Own Damage Premium – (No claim benefit + Discounts) + Fixed Liability Premium

Factors affecting Premium	Car Manufacturing Year(2014)	Car Insurance with no claim benefit
Car Ex showroom rate	250,000
Depreciation	25%	62,500
Insured Declared Value	185,500
Own Damage Premium	1.67%	3560
No Claim benefit discount	20%	850
Total own damage Premium	2550
Personal Accident Cover	150
Legal liability paid to the driver	40
Compulsory Third-party insurance	900
Net Premium	3640
Service Tax	14%	510
Total Premium	4150

Note: The above-mentioned example is a basic criterion to calculate insurance premium. However, it may vary from insurance company to company.

How To Reduce Car Insurance Premiums in the UAE?

Certain factors can help you reduce your car insurance premium in the UAE.

But you have to be proactive to take the maximum benefit from the elements that help reduce the car insurance premium. These factors are mentioned below:

• Renew car insurance policy on time
• Transfer no claim benefit on renewal
• Don’t raise small claims for your car
• Install an anti-theft device for protection
• Don’t modify your car
• Make an online purchase of a car insurance policy

Factors Determining the Car Insurance Premium Actual Value

Certain variables determine the actual value of the car insurance premium. These factors are mentioned below:

Age: Above 25 years of age, drivers are considered more reliable, and less premium is charged.

Car model: Luxury cars like Audi will be charged a high premium compared to a Toyota Camry.

Fuel Type: If you possess a CNG-fitted motor, you might have to pay a higher premium than a petrol or diesel car.

Car Manufacture year: An old vehicle will be charged a lower premium than a new car.

Place of insurance: The traffic density is another factor that affects the premium value. High traffic density areas will be charged a higher premium compared to remote areas.

Discounts: There are certain professionals like doctors, military personnel, and government employees to whom the insurance company charges a lower premium.

No claim Benefit: If you have not made any claim in the previous year, you can claim the no claim benefit discount that varies from 20% to 50%, depending upon the insurance company’s discretion.

Voluntary Access: You agree with the insurance company to pay a certain amount by yourself if any claim on your car arises.

Anti-theft device discount: If you have installed an anti-theft device in your vehicle, you’re entitled to almost a 2.5% discount on your insurance premium. But it also depends on the insurance company’s discretion.

Essential Details Required For Car Insurance Premium Calculation

There are specific essential details you require at the time of online car insurance premium calculation as mentioned below:

• Car registration number and year
• Manufacturer name
• Fuel Type
• Car variant 
• RTO
• Driving License number
• Personal details
• Visa number or Emirates ID

How Is The Premium Calculation Of A New Car Different From An Old Car?

When you have bought a new car in the UAE, you must get third-party insurance, which is obligatory by law.

However, suppose you go for the comprehensive policy option. In that case, it will consist of two premiums: one is a third-party premium, and the second is an own-damage premium that is calculated with the help of an elemental formula as mentioned below:

Own damage premium= Insured declared value * insurer premium rate + Add-ons cover – Discount

The insurance premium on an old vehicle is less than the new one because it possesses many deductibles and discounts, which reduce the premium for the old car.

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