UAE car insurance prices rise up to 40%

UAE drivers are now paying up to 40.59 per cent more for car insurance than they were last year following new tariffs introduced in January by the country’s Insurance Authority

Comparison site compareit4me said it expected the new tariffs, which include minimum comprehensive insurance premiums of Dhs1,300 for saloons and Dhs2,000 for SUVS to lead to 35 per cent of UAE drivers paying more.

Read: UAE motorists may have to pay more for car insurance under new law

However, the firm said data from policies solid in January and February showed all drivers were paying an average of 14.88 per cent more.

“Our research shows that SUV drivers are paying anywhere between 2.33 per cent and 40.59 per cent more – depending on the value of the car – for their fully comprehensive policies in 2017 than they were in 2016. For saloon drivers, again depending on the value of the car, the increase ranges from 4.6 per cent to 19.34 per cent,” said Radhika Agnihotri, insight analyst at compareit4me.com.

The worst affected were found to be those driving SUVs worth less than Dhs50,000, with comprehensive policies now 40.59 per cent, or Dhs618, more expensive on average than in 2016.

Saloon car drivers in the same category were found to be paying 9.53 per cent, or Dhs131, more on average in comparison. While those with saloon vehicles worth between Dhs100,000 and Dhs150,000 saw increases of 19.34 per cent (Dhs711)and those with vehicles worth more than Dhs300,000 increases of 16.78 per cent (Dhs1,691)

Comparei4me’s chief financial officer Jonathan Rawling said insurers had used the new tariffs to raise prices for all categories and not just policies below the minimum premiums because the new rules also provide more protection for UAE drivers.

This includes a higher cap on third-party property damage, from Dhs250,000 to Dhs2m.

Third party policy sales doubled in January and February compared to the last two months of 0216 and the company said there was a risk less affluent residents were priced out of comprehensive policies.