Residents across the UAE are being careful about where they are putting their money, especially when it comes to paying for car insurance.

Many drivers have opted not to pay for extra add-ons in their car insurance packages in light of what they feel are increasing prices.
Data from showed that drivers in the UAE are paying an average of 15 per cent more for their car insurance in 2017 than in 2016. Owners of SUVs valued at under Dh50,000 have been hit particularly hard, with fully comprehensive premiums jumping by an average of 40.59 per cent, compared to 9.53 per cent for saloon car owners.

In another survey, disclosed a significant drop in the percentage of UAE consumers opting for agency repair as a policy add-on. While over 42 per cent of buyers opted for agency repair in 2016, this number dropped to 18 per cent in 2017. Most insurers in the UAE offer agency repair as a standard benefit for a period of up to three years. But, in most cases, car owners have the option to extend the agency repair coverage for up to five years. This feature is available as a policy add-on, subject to an additional premium.

Here is what Ambareen Musa, Founder & CEO of, had to say.

A rise in car insurance premiums following the introduction of the unified car insurance policy at the start of 2017, coupled with rising concerns about the future impact of VAT on the cost of living, has definitely had an impact on how customers are shopping for car insurance.

She said there is a noticeable trend in customers foregoing non-critical add-ons in favor of those that offer protection against the most common risks. “The trend we’re seeing now is that customers are happy to settle for non-agency repair, the cheaper alternative. They are finding it increasingly difficult to justify the additional expense of opting for agency repair.

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