Compare & Buy Online Car Insurance Abu Dhabi

Car Insurance Abu Dhabi - Why is it Mandatory?

Car insurance Abu Dhabi is mandatory because of its legal requirements and the fact that it protects against third-party financial risks. If you buy car insurance, it provides financial security to the vehicle owners by covering costs related to accidents, and the potential repairs or replacements.

If you drive an uninsured vehicle that results in some kind of third-party damage, the driver at fault becomes liable to pay the fees for the same, including repair costs for the damages caused or medical bills if applicable.

Note – If you drive an uninsured vehicle in Abu Dhabi, you would be levied with a hefty fine of AED 500 along with 4 black points and sometimes lead to vehicle confiscation for up to 7 days.

Best Car Insurance in Abu Dhabi

Some of the best and the cheapest car insurance quotes in Abu Dhabi are:

*Above mentioned prices are for Honda City EX 1.5L, 2017 model.

Why Should You Buy Car Insurance in Abu Dhabi Through Policybazaar.ae?

When you buy the best car insurance in Abu Dhabi from Policybazaar.ae, you unlock a plethora of benefits. It ranges from the power to compare and select the plan at your will to getting personalised expert advice from industry experts. Here are some reasons to buy from Policybazaar UAE —

Policybazaar UAE has a strong foothold in the UAE insurance market with over 1.5 million loyal customers and more than 750,000 policies sold
Compare up to 5 insurance plans and select the best plan in a matter of just a few minutes
Get the cheapest and best car insurance in Abu Dhabi and enjoy exclusive benefits like up to a 30% safe driver discount* and 12 free car washes* on your plan
Seek assistance from industry experts in case you get stuck while choosing the right motor insurance in Abu Dhabi for you

Types of Car Insurance in Abu Dhabi

You can select from two types of auto insurance in Abu Dhabi — third-party and comprehensive — as per your needs. This section provides detailed information about the two Abu Dhabi car insurance policies.

Third-Party Car Insurance

As per Abu Dhabi traffic laws, every vehicle owner must have third-party insurance. This insurance only covers damage you cause to other people or their property — it does not cover any damage to your vehicle. Third-party insurance provides basic protection and is one of the most affordable car insurance options available in Abu Dhabi. You can buy it through third-party aggregators like Policybazaar.ae.

Comprehensive Car Insurance

A comprehensive car policy in Abu Dhabi covers not just third-party damages but also repairs to your vehicle. It covers all your losses caused by theft, fire, explosions, vandalism, or self-ignition.While comprehensive insurance is optional for most vehicle owners, it is usually required if your car is still under a loan or lease.

Get Best Car Insurance Abu Dhabi Quotes from Top Leading Motor Insurers

List of Add-ons for Car Insurance Abu Dhabi

While buying comprehensive car insurance Abu Dhabi, you can explore and include a series of add-ons at a nominal additional premium to make your policy more comprehensive and accessible. For this, however, you need to thoroughly understand the add-on options. Read on to know more about the key ones —

Personal Accident Cover for Drivers and Passengers —

This rider is usually free and covers the driver's and the passengers’ lives in the insured car. Under this benefit, up to AED 200,000 (per person) is provided for every passenger and the driver if they accidentally pass away or become disabled. This, however, comes with some terms and conditions. For instance, the car should not be overloaded.

Roadside Assistance —

If the car breaks down in the middle of the road, you can get it towed to your nearest authorised garage using this benefit. Other services offered under this benefit include flat tyre replacement, battery jump start, breakdown recovery, lock replacement, and more.

Natural Perils Cover —

This Abu Dhabi car insurance add-on covers your vehicle against natural disasters such as earthquakes, floods, and more. This rider, which became popular after the 2024 UAE floods, comes with terms and conditions. In case of floods, you don’t get coverage if you drive your car deliberately in a waterlogged area or purposefully park in such areas.

Oman Extension —

This add-on covers your vehicle in case of an accident or loss in Oman.The most important point to remember regarding this add-on is that it doesn’t cover any third-party liabilities in Oman — for that, you need to get an Orange card.

Car Rental Cover —

This rider provides you with a rented replacement while your insured car is being repaired. This way, you can easily travel around while your car undergoes repairs.

Factors that Affect Car Insurance Premiums in Abu Dhabi

The premium that you pay for motor insurance Abu Dhabi may vary as per the provider and several other factors. The latter includes the age of your vehicle, your driving record, whether you have modified the car, your claims history, coverage type, the add-ons you opt for, and more.

Here is a detailed discussion of the factors affecting Abu Dhabi car insurance prices —

Vehicle Value – The cost of your car is one of the biggest factors. Expensive cars like luxury or sports models cost more to insure as they’re costly to repair or replace. Budget cars usually come with lower premiums.
Car Modifications – Changes made to your car, like engine upgrades or custom paint jobs, can increase your premiums as they can raise the risk of accidents or increase repair costs. Always inform your insurer about any changes.
Driving History – A clean record with no accidents or traffic fines usually earns you lower premiums. However, if you’ve had accidents or violations, your insurance costs can go up.
Driver’s Age – Young drivers, especially those under 25, often pay more due to less experience and higher accident rates. Premiums usually drop with age and safe driving.
Claims History – If you’ve filed many claims in the past, insurers may see you as a higher risk and charge more. In fact, even one large claim can affect your rates.

To keep your premiums low, it might be better to pay out of pocket for at least small repairs.

Location – Where you live also matters in terms of costs. High-traffic urban areas or regions with high accident or theft rates can lead to higher premiums. Areas prone to floods or other natural risks may also cost more to insure.
Type of Coverage – Basic third-party insurance is cheaper but offers limited protection. Comprehensive coverage costs more but gives broader protection.
No-Claims Discount – If you haven’t filed any claims for a few years, you can earn a discount on your premium. This reward increases with each claim-free year, up to a certain limit.
Vehicle Age and Condition – Older, well-maintained vehicles usually have lower premium costs. However, this is not always the case. If the car is old and in poor condition, the premium could be higher as there are chances of breakdowns and damage.

Tips to Save on Motor Insurance Abu Dhabi

Here are some tips to save money while getting the maximum coverage with car insurance Abu Dhabi —

Understand What You Require – Before buying a policy, you should first evaluate your requirements and choose from third-party liability and comprehensive motor insurance. To understand what kind of insurance you need, first assess the make, model, and value of the vehicle.
compare car insurance Quotes before Making the Purchase – Once you have evaluated your requirements, compare car insurance quotes on online portals like Policybazaar.ae. Here, you can find the best coverage for your vehicle at affordable rates and discounts.
Make Use of No-Claim Bonus – If you have not filed any claims in your previous policy years, you will be considered a safe driver and eligible for a no-claim bonus. Always confirm the discount percentage with your provider for your benefit.
Be Smart with Choosing Your Add-ons – Always analyse the situations before including add-ons to your plan. Most of these riders come with a price, so it is important to analyse which riders you should add to your policy.
Increase the Excess Amount – It is the excess amount that you, as a policyholder, would need to pay out-of-pocket before your insurance covers the remaining claim. The minimum amount is usually AED 200. However, if you choose to increase the excess amount, it can reduce the premium.
Drive Safely – To ensure that you get the cheapest car insurance in Abu Dhabi, you should maintain a clean driving record. This way, you not only remain safe on the road but also get coverage at lower premium rates. Ensure Timely Car Insurance Renewal – To avoid paying a higher premium as a penalty, make sure you renew your policy on time. You can easily renew your Abu Dhabi motor insurance on Policybazaar.ae.

How to Buy Car Insurance Abu Dhabi?

You can easily buy car insurance in Abu Dhabi through Policybazaar.ae. Here are the steps to get your insurance plan with just a few clicks —

On Policybazaar.ae, click on the 'Car Insurance' tab in the 'Insurance' option on the Menu Bar

You will find an insurance application form — fill it out

Once done, you will be directed to the Quotes Page

Here, you can compare insurance policies from the leading providers in the UAE.

Once you have made your choice, choose the Buy option

Follow the on-screen instructions

Documents Required to Buy a Car Insurance Policy in Abu Dhabi

Valid driving licence
Emirates ID
Confirmation letter for GCC-specific cars
Passport with residence visa (for expats)

How to Renew Car Insurance in Abu Dhabi?

Just like the process of purchasing, renewing car insurance Abu Dhabi also becomes quite easy through Policybazaar.ae. Here's how it goes —

Scenario 1 - If You Have a Plan from a Provider but Want to Buy a New Plan from Policybazaar.ae

Simply follow the process of buying insurance (discussed above). Fill in the application form available on the website and follow the instructions as mentioned.

Scenario 2 - When You Bought a Policy from Policybazaar.ae and Want to Renew It. Policybazaar.ae sends friendly reminders about policy renewals from time to time.Go to your user dashboard on the website. Here, you will find all your policies that require renewal.

After you select the car policy that needs renewal, you will get two options —

To continue with the same provider — For this, you will be taken to the next step after selecting the required option.
To change the provider — On choosing this, you will be directed to the quotes page. You can choose a different provider and follow the on-screen instructions.

Documents Required for Car Insurance Renewal in Abu Dhabi

Here is the list of documents generally required for renewing motor insurance Abu Dhabi —

Original Mulkiya
Chassis number, engine number, and other details associated with the car
Passport copy and residence visa
Previous insurance policy’s number
Valid driving licence
No-claim bonus certificate (if applicable)

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Frequently Asked Questions

You need at least a third-party liability insurance to drive your car around in Abu Dhabi. This type of coverage, mandatory for vehicle owners in the country, covers the liabilities that occur if your vehicle causes an accident and damages a third party’s car or property.

No, you cannot generally transfer your car insurance plan if you sell your car. After you cancel the plan, the new buyer needs to buy a new plan to avoid paying any fines or deductibles selected by the previous car owner.

Getting a car insurance certificate in Abu Dhabi is a quick process and usually takes anywhere from 15 to 20 minutes to a few hours. All of this depends on if you have all the necessary documents and are crystal clear about your requirements.

No Claim Discount is fundamentally a reward given by insurance companies to their customers who don’t make any claims in their entire policy tenure. These discounts are provided at the time of policy renewal.

You can incur fines for driving without a valid car insurance. Apart from this, you can face penalties like black points or confiscation of your vehicle.

The average premium rate in Abu Dhabi is 2.35% of the car value. There are other factors too that influence the car insurance Abu Dhabi price including driver’s age, number of insurance claims in the past, the kind of car you plan on buying, and more.

Yes, car insurance is mandatory in Abu Dhabi. Driving an uninsured car can lead to a fine of AED 500 and 4 black points on your driving record. Sometimes, it can also lead to vehicle confiscation for up to 7 working days.

Yes, you can drive your friend’s car in Abu Dhabi if you have permission to drive from the owner and a valid driving licence. In addition, the car you are driving needs to be insured with at least a third-party motor insurance plan, if not a comprehensive one.

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