Before Renewing Your Car Insurance in UAE Read This

It is that time of year again. The RTA SMS is pinging your phone: “Your vehicle registration is about to
expire.”

Your broker (or the nice lady from the bank) calls you. “Sir/Ma’am, shall we renew your policy? It’s the same
price as last year, very good deal.”

The temptation is overwhelming. You are busy. You just want to click “Pay,” get the PDF, and be done with it.
But you shouldn’t. Auto-renewing without checking is the easiest way to throw away money in the UAE
insurance market.

Here is your comprehensive pre-renewal checklist. Ticking these boxes usually finds AED 300 to AED 1,000 in
hidden savings or value.

1. The “Agency Repair” Cut-Off Date

This is the most critical check for any car aged 3 to 5 years.

The Fix:

• Step 1: Check the new quote. Does it say “Repair Type: Agency”?
• Step 2: If YES, do you still need it? If your car is 5 years old and out of warranty,
  do you really want to pay a 40% premium surcharge just to have the dealer change a bumper? A “Grade A”
  workshop will do it perfectly for much less. Switching to “Premium Garage” can slash your bill
  instantly.

2. The “Car Value” Discrepancy

Insurers use automated depreciation tables. They might value your 2020 SUV at AED 80,000 this year.

The Problem:

• Scenario A (Over-Insured): The real market value (Dubizzle checks) is only AED 60,000.
  You are paying a premium based on AED 80k. You are wasting money.
• Scenario B (Under-Insured): Used car prices have spiked (as they did in 2022-2023).
  Your car is actually worth AED 100,000. If the insurer values it at AED 80k and you write it off, you
  lose AED 20k instantly.

Action: Check the current market price of your car. Tell the broker: “Please adjust the
Sum Insured to AED X.”

3. The “Excess” Gamble

The “Excess” (or Deductible) is the amount you pay if YOU cause an accident. The standard is AED 350 or AED
500.

The Strategy: Betting on yourself.
If you are a safe driver, ask the insurer: “If I increase my Voluntary Excess to AED 1,000 or AED 1,500,
how much will my premium drop?”

Often, raising the excess can lower the premium by 10-15%. You are telling the insurer: “I am confident I
won’t crash, so I’ll take more risk.” If you don’t crash, you pocket the savings.

4. The Roadside Assistance Reality

In the UAE summer (50°C), Roadside Assistance is not a luxury; it is a survival kit.

Check specifically for these three items in the renewal:

1. Towing Limit: Does it cover “Start to Destination” or just “Nearest Garage”? Nearest
   Garage might be a random shop in the middle of nowhere.
2. Battery Boost: Batteries die fast in the heat. Ensure you have “Unlimited” battery
   jumpstarts, not just one per year.
3. Airport Drop-off: Many premium policies include a free chauffeur service to the airport
   once a year. It’s a value add worth AED 150-200. Use it!

5. Declare Your Modifications

Did you add a roof rack? New rims? A suspension lift kit? A “Baby on Board” sticker doesn’t count, but
mechanical changes do.

The Risk: If you modified the car and didn’t tell the insurer, they can Void the
Policy during a claim. They will say the car usually behaves differently than the “Factory
Spec” risk they insured.
Action: Email them a list of mods. They might charge AED 50 extra, but your claim will be
safe.

Comparison: Loyalty vs. Switching

FAQ: Renewal Edition

Q: Can I renew my insurance before the registration expires?
A: Yes, you can renew up to 90 days in advance. Locking in a good price early is smart.

Q: I have black points. Will my premium go up?
A: Yes. Insurers now link with the Traffic Department system. If you have serious violations (speeding over
60km/h, jumping red lights), your risk score spikes, and so does your price.

Q: What is “GAP Insurance”?
A: Guaranteed Asset Protection. If your car is totaled, standard insurance pays the depreciated
market value. GAP insurance pays the difference between that and the original invoice price (what
you paid for the car). Great for brand new cars.