Car Insurance Secrets in the UAE

There are some surprising reasons why you car insurance can be much higher than someone else’s.

Last Updated on August 11, 2022 by user

We all know that the price of car insurance in the UAE is based on factors such as the car model and the driver’s age. However, there are some other factors that are not really under your control that can have a huge impact on your motor insurance premium.

Country of First Driving License

The country in which you first obtained your driver’s license can significantly affect the car insurance premium. While this is not a universal rule in the UAE, those who first received their license from a Western country usually get the lowest rate. So how much more expensive is car insurance for those who got their first license in the UAE? Depending on the insurance company, you could end up paying up to 39% more! Some insurers will only charge a small premium of around 5%, but many will charge at least 20% higher.

Surprisingly, the premium can be even higher if you first obtained your driving license from the following countries: Egypt, India and Iran. According to, one car insurance company in the UAE charges up to 65% more for customers who obtained their first driver’s license from one of the aforementioned countries.

Place of Registration

Dubai is the cheapest city in which to get car insurance. Where your vehicle is registered will have a big impact on the motor insurance premium. The most expensive place to get car insurance is Abu Dhabi, where it could cost up 25% more for a driver to insure a vehicle.  Most often, car insurance in Dubai, Sharjah and Ajman will be lower compared to car insurance in Abu Dhabi, Al Ain, Fujairah and Umm Al Quwain.


In the UAE, gender has virtually no impact on the price of car insurance. This is quite surprising given that in most other countries, females get better rates compared to male drivers.

Driving Experience

The price of car insurance depends on your driving experience; a driver with 1 year experience might end up paying 18% more than a driver with 2 years of experience. However, for 2 years of experience or more, the price will stay the same. What matters thereafter is the number of years you have been driving without a claim (this is known as the No Claims Discount); each year that you drive without getting into an accident, your car insurance premium will decrease (up to 5 years, with no additional discounts thereafter). However, once you do make a claim, the clock resets and your car insurance premium will increase to almost the same rate as someone who has only 1 year of driving experience. It will then gradually decrease each year that goes by without a claim. 

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