Car insurance guide and fact sheet in the UAE

Curious to know more about car insurance in the UAE?

We’ve partnered up with Souqalmal.com for a feature that allows you to compare and buy car insurance in less than one minute on dubizzle. To celebrate this collaboration, we decided to combine our data with Souqalmal’s to give you a deep dive into the world of car insurance in the UAE.

So what did we cover?

  • Difference between the average car prices on dubizzle vs their value by the insurance companies
  • How the age of your car affects your premium
  • The most insured cars since May 2016
  • How your age & driving experience affect your premium

 

Car insurance in the UAE

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  • Ken Research

    I have some suggestion for……

    UAE Car Finance Market has showcased compelling opportunities in the last few years with resilience showcased at multiple levels by banks and private finance companies. Our recent interview with Mr. Namit Goel, Director, Ken Research aided us to understand the market scenario.

    How the Competition is prevailing in the Car Finance Market?

    UAE car finance market is highly fragmented with the presence of many players including banks and private finance companies. A tough competition is prevalent in the market between these players and they together offer many financing schemes for both used and new cars. The primary motive of these financial institutions is to offer convenient and easily repayable car loans to the public and attain reasonable profit. These players compete against each other on the basis of interest rates, schemes offered, tenure, down payment systems, terms of loan, early settlement fees, minimum salary requirements and others.

    There are two types of banks in UAE such as conventional and Islamic banks, which offer car loans to the public on different terms, major difference being the concept of interest. Conventional banks include interest in their practices whereas Islamic bank runs on the Ijarah system under the Islamic law which promotes profit sharing system between the borrower and lender. The conventional banks are competing with each other majorly on the basis of interest rates to attract more customers.

    Further, increased competition in the market has induced the banks to offer existing products in the market with additional features. Many banks follow a risk based pricing structure, wherein they reward customers who maintain a good relationship with them. Additionally, banks offer rewards and loyalty programs to attract customers in a competitive business landscape.
    Hence, we can observe that the market is highly competitive with large number of players offering distinctive finance schemes and offers at varying terms and conditions.