In the United Arab Emirates (UAE), car insurance isn’t just a smart financial decision—it’s a legal requirement for every vehicle owner. Whether you're a UAE national or an expatriate living in dynamic cities like Dubai, Abu Dhabi, or Sharjah, having valid car insurance is essential to stay compliant with traffic laws and protect yourself from unexpected expenses.

With a rapidly growing number of vehicles on the road and a diverse population of drivers, car insurance plays a critical role in ensuring road safety, financial security, and peace of mind. From minor fender-benders to major accidents, the right insurance policy can save you from significant out-of-pocket costs.

This guide breaks down everything you need to know about car insurance in the UAE—from the types of coverage available and how premiums are calculated to the claims process and the benefits of choosing a digital-first provider like Kamal Insurance.

At Kamal Insurance, we’re redefining how easy and affordable car insurance can be. Whether you're buying a new car or renewing your policy, this guide will help you make informed decisions and navigate the UAE’s insurance system with confidence.

What is car insurance, and why is it mandatory in the UAE?

Car insurance protects you financially if your vehicle is damaged, lost, or causes harm to others. It can cover repairs, replacement, medical bills, and third-party liabilities.

In the United Arab Emirates (UAE), car insurance isn’t optional—it’s mandatory under RTA (Roads and Transport Authority) laws. Before registering a car or renewing your vehicle registration, you must present valid insurance.

Types of Car Insurance in the UAE

When it comes to motor insurance in the UAE—whether you're driving through Dubai, Abu Dhabi, or anywhere across the Emirates—there are two primary types of coverage to consider:

1. Third-Party Liability Insurance (Mandatory)

This is the minimum coverage required by UAE law and is essential for registering or renewing your vehicle. It includes:

• ✅ Coverage for damage caused to another person’s vehicle
• ✅ Compensation for injury or death of third parties
• ✅ Legal liability protection

However, it does not cover any damage to your vehicle, which is why it’s best suited for older cars or budget-conscious drivers.

Kamal Insurance specializes in providing this essential coverage—fast, affordable, and 100% online.

2. Comprehensive Car Insurance

The comprehensive car insurance plan offers full-spectrum protection, covering both third-party liabilities and your vehicle. It includes:

• 🚗 Damage to your car—even if you're at fault
• 🔒 Theft, vandalism, and fire
• 🌪️ Natural disasters like floods or sandstorms
• 🏥 Medical expenses for you and your passengers

If you're looking for greater peace of mind, Liva Insurance—our parent brand—offers customizable, comprehensive plans that fit your lifestyle, vehicle type, and budget.

At Kamal Insurance, we make it easy to compare and choose the right plan for your needs. Whether you’re going for the mandatory third-party option or upgrading to a comprehensive plan with Liva Insurance, you can do it all online in minutes.

How Are Car Insurance Premiums Calculated?

Car insurance premiums in the UAE are calculated using a combination of vehicle-specific, driver-specific, and location-based factors. Insurers use actuarial models and digital algorithms to assess risk and determine pricing. Here's what influences your premium:

🚗 Vehicle Factors

• Make, model, and year of manufacture
• The market value of the car (e.g., cars under AED 100,000 may be rated at ~2.5% of value).
• Engine capacity and body type
• Age of the vehicle (older cars may incur surcharges for agency repairs)

👤 Driver Profile

• Age and driving experience UAE license tenure Claims history

📍 Location & Usage

• City of registration (e.g., Dubai vs. Sharjah)
• Frequency and purpose of driving (personal vs. commercial)

🧾 Type of Coverage

• Third-party liability (basic, cheaper)
• Comprehensive insurance (more expensive but offers full protection)

Digital platforms like KamalInsurance.ae simplify this process. With just a few clicks, you can get an instant, personalised quote—no paperwork, no phone calls.

Understanding the Insurance Model: Premiums & Payouts

Car insurance in the UAE operates on a risk pool model, whether conventional or Takaful:

1. You pay a premium.
2. That money goes into a shared fund managed by the insurance company.
3. When a covered loss occurs (e.g., accident, theft), the insurer pays out from this pool.
4. Premiums are priced to ensure sustainability across claims, operations, and profits

This model ensures that all policyholders contribute to a system that supports each other in times of need.

What Is Takaful Car Insurance?

Takaful is a Shariah-compliant alternative to conventional insurance, gaining popularity in the UAE. It’s built on principles of cooperation and ethical finance.

• Participants contribute to the Takaful fund.
• Claims are paid from this pool when a member experiences a loss.
• Oversight by Shariah boards ensures compliance with Islamic ethics

How does the car insurance claim process work in the UAE?

Accidents happen, and knowing how to file a claim can save you time and stress. Here’s how it works:

1. Report the incident to the police and obtain a police report.
2. Document the damage with photos or videos.
3. Submit your claim via your insurer’s portal or app.
4. The insurer assigns a garage and a surveyor to assess the damage.
5. Once approved, repairs begin, and you’re notified when your car is ready

With Kamal Insurance, you can initiate claims directly through our platform—no agents, no paperwork, just fast digital service.

The Kamal Advantage: 100% Online Car Insurance in Minutes

Unlike traditional insurers, Kamal is the UAE’s first digital-only car insurance provider. Here’s why thousands of UAE drivers are switching:

• Instant quotes tailored to your vehicle and profile
• No calls, no paperwork—everything happens online
• Backed by over 60 years of local experience and 300+ years of global expertise via Liva Insurance

Choose the Right Protection for Your Vehicle

Whether you're looking for basic third-party cover or full-scale comprehensive protection, understanding how car insurance works in the UAE empowers you to make the best choice.

You can go traditional—or go digital with Kamal Insurance and get:

• Instant coverage
• Transparent pricing
• Total convenience

👉 Ready to get started? Get a free third-party insurance quote now and experience car insurance the way it should be—fast, easy, and made for the modern UAE driver.