The UAE car insurance costs have increased by up to 40% on some models forcing motorists to look for cheaper options, according to a new study. The increase comes as a result of new tariffs from the UAE Insurance Authority that were introduced on 1st January. The new tariff system sees UAE insurers adopt minimum comprehensive insurance premiums of Dhs 1,300 for saloon cars and Dhs 2,000 for SUVs.
Owners of saloons worth between Dhs 100,000 and Dhs 150,000 have also seen reasonably steep increases – this group is now paying an average of 19.34% Dhs 711) more for fully comprehensive insurance than in 2016. And those who drive saloons worth over Dhs 300,000 are now paying 16.78% Dhs 1,691) more. Experts predict that the inflation rate will continue rising next year with the expected introduction of VAT.