Commercial Car Insurance: Benefits, Types & How to Claim in UAE

Commercial Vehicle Insurance in the UAE – Compare & Save on Business Car Cover

Commercial vehicle insurance is essential for any business in the UAE that uses cars, vans, trucks, or fleets for work. Whether your company ...read more

Best Car Insurance in UAE

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

*Above mentioned prices are for Honda City EX 1.5L, 2022 model.

What Is Commercial Vehicle Insurance?

Commercial vehicle insurance is a policy designed to protect vehicles used for business or commercial purposes. Unlike personal insurance, commercial coverage offers broader protection because work-related driving involves higher risk. You need a commercial policy if your vehicle is used for:

Deliveries
Transporting goods
Corporate travel
Employee movement
Logistics or operations
Service visits
Business meetings

If you use your car or van for work, you must have car insurance for business use to stay compliant with UAE road regulations.

Why Do Businesses Need Commercial Car Insurance?

Choosing the right commercial car insurance gives your business protection from:

✔ Accidental damage
✔ Third-party liability
✔ Theft & fire
✔ Passenger injury
✔ Property damage
✔ Business interruption
✔ Legal requirements in UAE

If your company vehicle is involved in an accident while used for work, personal insurance will not cover the damage. This makes commercial vehicle insurance mandatory for all business-use vehicles.

Types of Commercial Vehicle Insurance in the UAE

1. Third-Party Liability Commercial Insurance

Mandatory by UAE law. Covers:

Injury to third parties
Damage to third-party vehicles
Property damage

Cost-effective and ideal for low-risk business vehicles.

2. Comprehensive Commercial Vehicle Insurance

Offers complete protection, including:

Own damage
Fire, theft, vandalism
Third-party liability
Personal accident coverage
Agency repairs
Natural disaster protection

Perfect for businesses needing strong coverage.

3. Corporate Vehicle Insurance UAE (Fleet Insurance)

For companies with multiple business-use vehicles.

Benefits:

Fleet discounts
Centralized policy management
Lower cost per vehicle
Smooth claim handling

Ideal for logistics companies, delivery fleets, rental companies, and corporate organizations.

Commercial Vehicle Insurance Cost in the UAE

The commercial vehicle insurance cost varies depending on:

Type of vehicle (LCV, pickup, van, corporate car)
Business usage (delivery, cargo, sales, corporate use)
Vehicle value and model
Driver age and experience
Company claim history
Location (Dubai tends to have higher premiums)

Average Cost Range

Commercial car insurance: AED 1,500 – AED 4,000
Pickup & LCV insurance: AED 2,000 – AED 6,000
Fleet policies: Custom pricing with discounts

How to Get Cheap Commercial Vehicle Insurance

Finding cheap commercial vehicle insurance is easy when you compare plans. You can lower your cost by:

✔ Choosing the right coverage level
✔ Maintaining driver safety records
✔ Getting fleet or bulk discounts
✔ Avoiding unnecessary add-ons
✔ Installing tracking or safety systems
✔ Comparing multiple insurers (BIGGEST savings)

Policybazaar UAE helps you compare plans and get the lowest premium instantly.

Commercial Vehicle Insurance Dubai – City-Specific Requirements

Dubai has the highest number of commercial vehicles in the UAE, especially delivery vans, pickups, and corporate cars. Due to higher traffic density and higher accident rates, commercial vehicle insurance Dubai premiums may be slightly higher.Businesses operating in Dubai should choose policies that include:

Agency repairs
Roadside assistance
High-liability coverage
Comprehensive fleet protection

What’s Covered Under Commercial Vehicle Insurance?

Standard Coverage	Add-Ons You Can Include
Accidental damage Third-party injuries & property damage Fire, theft, and vandalism Passenger liability Medical expenses Towing after accident	GCC coverage Windscreen cover Natural calamity cover Roadside assistance Replacement vehicle Personal accident cover Off-road cover (limited vehicle types)