Most Common Car Insurance Related Questions Asked in the UAE

Last updated on : 30 May 2024
5 min read

Car insurance is an essential requirement for vehicle owners in the UAE. As the number of car owners continues to grow, it's natural for people to have questions related to car insurance. In this article, we will answer the top 10 most common car insurance questions asked by people in the UAE. 

Our answers aim to provide you with a better understanding of car insurance. 

1. What types of car insurance are available in the UAE? 

In the UAE, there are two main types of car insurance: Comprehensive and Third-party liability insurance. Comprehensive insurance provides coverage for damage to your vehicle, as well as third-party liability, theft, fire, and natural disasters. 

Third-party liability insurance covers damages to third-party vehicles or property if you cause an accident. 

2. What factors affect the cost of car insurance?

 Several factors influence the cost of car insurance in the UAE. These include the type of coverage you choose, the make and model of your vehicle, your age and driving experience and your claims history. The No Claims Discount (NCD) is also an important factor that helps offer lower premiums for each claim-free year.

3. How can I reduce my car insurance premium?

There are several ways to lower your car insurance premium in the UAE. Firstly, by maintaining a clean driving record and by avoiding accidents. This can earn you a No Claims Discount that can lessen your premiums significantly. Secondly, improving safety features of your car by installing anti-theft devices, tracking systems, and airbags can result in lower premiums. Lastly, comparing quotes from different insurers and opting for higher deductibles can help reduce premiums too. Check out the best options available at 

4. Does my car insurance cover loss or damage to personal belongings?

Most car insurance policies in the UAE include coverage for personal belongings if they are stolen or damaged. However, it's advisable to check with your insurer as some policies may offer limited coverage for personal belongings within your vehicle. 

If you require additional coverage for valuable personal items, it may be necessary to consider obtaining a separate insurance policy.

5. Can I drive someone else's car with my insurance? 

A question that often arises is whether one's car insurance allows for driving another person's vehicle. Generally, in the UAE, car insurance is tied to the vehicle rather than the driver. Therefore, if you have comprehensive insurance, it typically provides coverage when driving someone else's car with their permission. 

However, it is important to carefully review your policy document as there may be specific restrictions or additional fees that apply.

6. What should I do in case of an accident?

In the event of an accident in the UAE, there are certain steps that should be followed. First and foremost, ensure that everyone involved in the accident is safe and if necessary, contact the police or call an ambulance. It is important to exchange contact details and insurance details with the other party involved in the accident. Additionally, taking photos of the accident scene and any resulting damage can be beneficial in documenting the incident. 

Once you feel at ease, contact us at 800 SHORY (74679) to initiate the claim process.  

7. Does car insurance cover natural disasters?

When it comes to coverage for natural disasters under car insurance in UAE, comprehensive policies typically provide protection against damages caused by floods, earthquakes, and storms. However, it is important to thoroughly review your policy document and check for specific details relating to natural disaster coverage as different insurers may have varying terms and conditions. 

8. Can I transfer my car insurance to a new vehicle? 

Transferring your car insurance to a new vehicle can be done in the UAE, depending on the insurer. To make this change official, contacting one of our Shory Ambassadors would be helpful as they can assist you with updating your vehicle details and completing any necessary documentation. It is worth noting that depending on your insurer there may be adjustments made to your premium based on factors such as make, model, and age of your new vehicle. 

9. What happens if I miss paying my car insurance premium?

Car insurance is paid for up front and in full. But if you have chosen to pay via a third party app, then missing out on payment can have consequences such as cancellation or suspension of your policy. To avoid any lapses in coverage, it is crucial to make prompt payments. In the event that a payment is missed, it is advisable to contact your insurance provider immediately to discuss the situation and arrange for payment. It is important to remember that driving without valid car insurance is considered illegal in the UAE and could result in penalties or fines. 

10. Does car insurance extend its protection to rental cars?

By standard practice in the UAE, car owners' insurance policies do not automatically encompass rented vehicles. 

However, there are certain exceptions where select insurers provide optional extensions or separate policies explicitly designed to cater to rental cars. Frequent renters are strongly advised to make relevant inquiries with their respective insurer regarding the availability of suitable rental car coverage or alternatively research rental companies offering additional insurance options. It is important that insurance buyers take the time to diligently examine and fully comprehend all provisions contained within their policy agreement. Additionally, it is beneficial for consumers to solicit multiple quotes from diverse insurers in order to make an informed comparison before ultimately choosing an insurer that best meets their specific requirements. Using Shory’s quotes gives you easy and instant access to online comparison. 


It is important to stay well-informed, practice responsible driving habits and procure sufficient knowledge related to your car insurance coverage for maximum safeguarding of your car. 

Disclaimer: Shory aims to present accurate and up to date information, however we take no responsibility or liability for any errors or omissions in the content.