Drivers in the UAE are facing big changes in the car insurance market this year, with new technology, higher repair costs, and dozens of choices for every type of vehicle. Finding the right policy can feel overwhelming, but understanding how prices work and what extras you really need can help you get the best value without breaking the bank.
In 2025, the cost of car insurance depends on the type of coverage you choose and the car you drive. Third party insurance is the most affordable, covering only damage you cause to other people or their vehicles. For small cars, third party plans start around 850 dirhams per year, rising to 1500 dirhams for SUVs and up to 3500 dirhams for luxury or sports models. This option works best for drivers with older cars or those looking to pay the lowest annual fee.
Comprehensive insurance is more expensive but gives peace of mind by covering your own car, other vehicles, accidents, theft, and even natural disasters depending on the policy. Prices start at 1800 dirhams for economy sedans, go up to 4500 dirhams for mid size SUVs, and can reach 9000 dirhams for high end brands like Mercedes or BMW. Supercars like Porsche or Ferrari can cost from 10000 to 18000 dirhams a year. Key factors that raise your premium include the driver’s age and experience, the car’s year and value, previous accidents, and where you live. Popular add ons like a replacement car during repairs or extra flood coverage can also add to the total.
Finding the lowest price for car insurance in 2025 is all about knowing where to look and what to ask for. The cheapest providers this year include Al Salama Insurance, Dar Al Takaful, Oman Insurance, Sanad Insurance, NSSG, RSA Insurance, and ADNIC. Prices can still change depending on your car and your driving record, so it pays to compare offers using platforms like PolicyBazaar or InsuranceMarket.
Smart ways to save include asking for a no claim discount if you have a clean record, comparing quotes from at least five companies, choosing third party coverage if your car is older, and paying for the full year up front to unlock extra savings. Be careful not to add features you do not need, since extras like roadside assistance or flood protection, while useful for some, can raise your premium. Most insurance can now be bought completely online, making it easier than ever to compare, buy, and renew your coverage with just a few clicks.
Started my career in Automotive Journalism in 2015. Even though I'm a pharmacist, hanging around cars all the time has created a passion for the automotive industry since day 1.
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