What does UAE law say about car insurance costs and conditions?

In the UAE, car insurance premiums are regulated under the Unified Motor Vehicle Insurance Policy and related decisions by the Insurance Authority. The law sets clear guidelines for both insurers and policyholders — including compensation obligations, exclusions, and policy termination clauses. Importantly, Decision No. 30 of 2016 caps the maximum insurance premium at 5% for saloon vehicles and 7% for four-wheel drives for a 13-month policy. While insurers can offer extra coverage through add-ons or riders (for additional premiums), they must still operate within the approved tariff structure. This ensures fair pricing and prevents overcharging, even if quotes vary between companies due to added benefits or risk factors. Do you think car insurance in the UAE is fairly priced — or do rates still feel too high for most drivers?

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