UAE: Motorists to pay higher vehicle insurance premiums; rates to increase further

UAE: Motorists to pay higher vehicle insurance premiums; rates to increase further

Auto premiums were reduced due to a decline in car demand after the pandemic, but as the market comes back on track, the rates are being revised

Published: Thu 17 Nov 2022, 6:00 AM

The UAE motorists will have to shell out more as insurance companies have increased auto premiums.

In 2020, Insurance Authority announced a Covid-19 discount of up to 50 per cent on premiums. Before Covid-19, insurance companies were allowed to discount up to 30 per cent, depending on the driver's history.

"In November, we have seen all insurers announcing their rate change to reduce the impact of the 50 per cent discount scheme and streamline rates back to a minimum of up to 30 per cent discount," said Neeraj Gupta, CEO, Policybazaar UAE.

Earlier, insurance companies were allowed to offer a 10 per cent discount for a year for drivers with no claims, a 20 per cent discount on a two-year policy and 30 per cent for three years and above in case of no claim history.

Gupta added that insurance companies started revising premiums at the beginning of the third quarter, and most insurers would have changed their pricing by the end of November.

Hitesh Motwani, chief marketing officer, Insurancemarket.ae, said motor insurance