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Driving in the UAE to get more expensive



While petrol prices in the UAE are relatively low – it costs just AED2.03 per litre for Super, the many additions like Salik tolls, paid parking and maintenance makes owning a car in the UAE pretty expensive…

And, with the rate of car insurance seeing a steady increase, the cost of driving in the nation doesn’t look like it’s going to get cheaper any time soon…

According to a regional comparison website, the rate of annual motor insurance has risen by an average of nearly 15 per cent with some models undergoing a 40 per cent fee increase.

The increase comes as a result of a new law passed by the UAE government late last year. The rule which introduced minimum premiums has resulted in drivers paying an average of 14.88 per cent more for their fully comprehensive car insurance.

So if for example you were to insure an SUV before the law was passed, you would have paid around AED1, 702. Today you’d pay AED2, 000 to insure the same SUV –if the rate doesn’t increase further, that is.

While the new law has seen an increase in insurance prices, some models have been slightly less affected than others… found that drivers of saloon cars worth less than AED50,000 are paying an average of just 9.53 per cent more for their fully comprehensive policies than they were in 2016 (that’s an increase of around AED130).

However, the same doesn’t go for SUV drivers with cars valued under AED50,000.  They have in fact been hit the hardest…. the insurance premium rates have increased by 40.59 per cent since last year.

And the introduction of VAT in January next year, will in fact push the prices even higher. Roughly 3.7 to 4 per cent higher, according to Monica Malik, chief economist at Abu Dhabi Commercial Bank.

So, now that we know roughly how much car insurance is going to cost over the next year or so, here are some alternatives…

Public transport
We know, we know, you’re too cool for it and you like your independence, but it’s relatively cheaper and better for the environment.


Car pool
Catch a ride with a relative or work buddy. And, if you’re ever late for work, just remember that you’re not the one paying for car insurance, salik tags or parking.


Work from home
We are well aware that that’s a bit farfetched but it’s never too late for a career change…


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