What is Compulsory and Volunteer Excess in Car Insurance?

Compulsory Excess in Car Insurance

Compulsory Excess in car insurance is the amount you must pay from your own pocket whenever you make a claim. It’s a normal part of most car ...read more

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What Is Compulsory Excess in Car Insurance?

Compulsory excess in car insurance is the amount that your insurer in the UAE requires you to pay every time you file a claim—regardless of fault. This is not optional and is clearly stated in your policy.

For example, if your policy has a compulsory excess of AED 500 and your repair bill is AED 5,000, your insurer will cover AED 4,500 while you pay the first AED 500. The exact amount varies depending on the vehicle type, driver age and insurer. This system helps reduce unnecessary claims and keeps insurance costs stable for everyone. It’s important to know this amount before buying or renewing a car insurance policy in the UAE.

When Do You Pay Insurance Excess in the UAE?

In the UAE, insurance excess is usually paid whenever you file a claim under your car insurance policy. This applies to most damage-related claims listed under the “Own Damage” section in policies issued by insurers. You may need to pay the compulsory excess in car insurance even if the accident was not your fault — especially in cases where the other party is unknown or cannot be identified.

For example, in hit-and-run situations or when your parked car is damaged without any third-party involvement, the excess is generally deducted from the claim amount you receive.

Here’s a quick overview —

Scenario	Is Excess Payable?	Notes
You caused the accident	Yes	Standard compulsory excess applies
Car damaged by flood or rain	Yes	Natural events covered (usually as add-on), but excess still applies
Car stolen or total loss	No	GIG, Sukoon and others waive excess in total loss and theft cases
Hit-and-run, no third party known	Yes	Treated as “own damage”; excess applies
Vandalism or a scratch while parked	Yes	No third party involved; excess is payable

Disclaimer: These examples are based on UAE insurer documents reviewed. Actual excess application may differ by policy and claim circumstances. Always refer to your insurer for case-specific guidance.

How Much Is the Excess in UAE Motor Insurance?

The amount of insurance excess you pay in the UAE depends on your vehicle type, the insurer you choose and sometimes the driver's profile. Most policies clearly state a compulsory excess in car insurance, which usually starts from AED 200. Sports and modified cars may come with even higher excess amounts—or, in some cases, limited coverage.

Vehicle Type	Watania	GIG	Methaq	Sukoon	Alliance
Sedan	AED 350	AED 500	AED 500	AED 500	AED 500
SUV	AED 500–750	AED 750	AED 750	AED 750	AED 750
Luxury / Sports Cars	NA	AED 1,500	Limited	AED 1,500+	AED 1,500

Disclaimer: The above excess values are taken from real UAE insurer policy documents for reference only. Actual amounts may vary based on the insurer’s underwriting criteria, vehicle specifications and policy terms.

Are There Any Additional Charges Besides Compulsory Excess?

Yes, in addition to the basic compulsory excess, some UAE insurers apply other deductibles in special cases, such as for specific types of claims or vehicles. These are referred to as “ancillary deductibles” or “special excess”. The exact conditions for any additional excess charges vary by insurer. Always refer to your policy’s Schedule of Benefits or contact your provider directly for clarification.

What If You're Not At Fault? Do You Still Pay Excess?

In many cases, you may still have to pay the compulsory excess even if the accident wasn't your fault. Most insurers refer to the excess as being “payable per claim”.

Scenario	Do You Pay Excess?	Notes
Hit-and-run, no third party found	Yes	Treated as own damage; excess applies
Car scratched while parked, no witness	Yes	No one to claim against; excess applies
Theft or fire	No	Most insurers waive excess for these scenarios

How to Reduce the Impact of Paying Excess in the UAE?

While you can't avoid compulsory excess in car insurance, you can take a few smart steps to reduce its financial impact, especially when dealing with unexpected claims.

Understand Your Policy Clearly: Before buying or renewing your policy, read the Schedule of Benefits. It usually lists the exact excess amount for your vehicle type. Some policies may offer lower excess at a slightly higher premium, which could save money in the long run if you drive frequently or in crowded areas.
Choose the Right Insurer: Different UAE insurers apply different excess structures. For instance, some apply basic excess from AED 200, while others may offer variations based on vehicle specs or claim history. Always compare policies, not just premiums.
Avoid Small Claims: If repair costs are only slightly above your excess (say AED 1,000 with an AED 500 deductible), consider paying out-of-pocket. Filing frequent claims for minor repairs can increase your premium at renewal, and doesn’t offer much financial benefit after the excess is applied.
Ask About Waivers for Total Loss or Theft: Some car insurers waive the excess for total loss and theft. It's worth checking this when choosing your policy, especially if your car is new or high value.

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Also Read - What is Car Insurance Excess

Frequently Asked Questions (FAQs)

Yes, if your policy covers GCC countries, especially Oman and you're driving outside the UAE, any valid claim will still be subject to the same basic excess unless stated otherwise. Usually, the excess is double the standard amount charged in the UAE.

Excess is applied per accident or per claim, not per year. This means each time you file a new claim, the compulsory excess will be deducted from the settlement amount.

No, personal accident cover or medical benefits (e.g. driver/passenger injury compensation) are generally paid out without applying excess. The deductible is mostly tied to vehicle repairs under "Own Damage".

While excess may not change, failing to report the accident promptly (generally within 24–48 hours) may lead to claim rejection altogether, which overrides any discussion of excess.

No. Most UAE car insurers waive the excess in case of total loss or theft. You receive the insured declared value (IDV) without any deductible being subtracted.

Yes. Some policies include clauses that exclude excess or apply a different fixed amount for claims involving windscreen, mirrors, tyres or lights — if damage is not part of a wider collision.

You cannot remove compulsory excess. It is a mandatory component in all comprehensive motor policies.