Many people are curious about the cost of insuring a luxury car in the United Arab Emirates. The answer may surprise you. Insuring a Porsche there, for instance, costs only around $450 per year, which is approximately €420.
This low cost is directly related to the unique situation in the UAE. In this country, car theft is virtually non-existent and vandalism of vehicles is extremely rare. This means insurers generally only have to pay out for damage caused by accidents.
Why car insurance is so affordable in the UAE
One of the main reasons for the low premiums is the strong law enforcement. The penalties for car theft and vandalism are extremely severe, making these crimes almost non-existent. As a result, insurers face much lower risk than in other countries.
Furthermore, there are many well-maintained roads and modern infrastructure, which reduces the likelihood of serious accidents. The fact that many cars are relatively new also plays a role in the low insurance costs.
Various types of car insurance are available, from standard coverage to more comprehensive packages. Nevertheless, the cost for most luxury cars remains remarkably low compared to other countries.
What you need to know when insuring a car in Dubai
Although premiums are low, it is important to carefully review the policy terms and conditions. For example, not every insurance policy covers natural disaster damage or damage caused by reckless driving.
In addition, many insurance policies offer optional extras, such as roadside assistance or a replacement vehicle. It is therefore worthwhile to compare options carefully and choose the one that best suits your needs.
In the UAE, car insurance is mandatory. But thanks to the country’s unique circumstances, you often pay a fraction of what you would elsewhere for a comparable car.
Edward Clarke is a seasoned property expert with extensive experience in international real estate investment, with a particular focus on Dubai’s fast-growing property market. Drawing on both personal investment experience and years of client advisory work, he helps investors make informed, realistic decisions when purchasing apartments, villas or off-plan developments in Dubai. With a pragmatic mindset, a sharp focus on returns and a strong commitment to transparency, Edward is a trusted point of contact for anyone considering a property investment in Dubai.
