💡 How to Get the Cheapest Third-Party Insurance in 2025?
Finding affordable car insurance is a priority for many drivers in Dubai. Fortunately, by employing smart strategies, you can significantly reduce your premiums. Here are three proven methods that Dubai drivers are using in 2025 to save on their third-party insurance:
1. Compare real-time quotes through RTA-approved platforms
Utilizing online comparison platforms approved by the Roads and Transport Authority (RTA) is the most efficient way to find the best deals. Websites like YallaCompare allow you to get instant quotes from multiple insurance providers, saving you the hassle of contacting each company individually.
2025 average savings: AED 300-600/year. Many Dubai residents have reported average annual savings ranging from AED 300 to AED 600 by simply comparing quotes online. This saving can make a significant difference to your overall car ownership costs, especially for families managing a tight budget.
2. Leverage no-claim bonuses
Maintaining a clean driving record in Dubai can pay off significantly when it comes to your car insurance premiums. Most insurance companies offer a "no-claim bonus," which provides a discount on your renewal premium for every year you go without making a claim.
Example: Adamjee Insurance, a well-known provider in the UAE, offers a 15% discount renewal credit for accident-free driving. This is a substantial saving that rewards safe driving habits and can accumulate over time, making it particularly beneficial for female drivers and families who prioritize safety.
3. Bundle with home insurance
Consider bundling your car insurance with your home insurance policy from the same provider. Many major insurance companies in the UAE offer discounts when you purchase multiple policies from them.
Major providers like Oman Insurance now give a 12% cross-policy discount when you bundle your car and home insurance. This can lead to significant savings, especially for homeowners in Dubai or other emirates who need both types of coverage. It's a convenient way to manage your insurance needs and reduce overall costs.
Why Prices Range from AED 800 to AED 1,500?
The cost of third-party car insurance in Dubai can vary significantly, with prices ranging from approximately AED 800 to AED 1,500. Several factors contribute to this price difference:
Factor | Price Impact | 2025 Trend |
|---|---|---|
Vehicle age (>5 yrs) | +25% | Rising |
Garage parking proof | -18% | Mandatory |
Driver age <25 | +35% | Stable |
Vehicle age (>5 yrs): Older vehicles are generally considered to be at a higher risk of breakdowns and accidents, leading to a potential increase of around 25% in insurance premiums. This trend is expected to continue in 2025 as the average age of vehicles on Dubai roads increases.
Garage parking proof: Insurers often offer discounts to drivers who can provide proof of secure garage parking, as it reduces the risk of theft and damage from the elements. In 2025, providing proof of garage parking is becoming increasingly mandatory in many residential areas of Dubai to qualify for lower premiums. This is particularly relevant for residents of gated communities or apartment buildings with dedicated parking spaces.
Driver age <25: Younger drivers are statistically more likely to be involved in accidents due to less driving experience, resulting in significantly higher premiums, often around 35% more than older drivers. This trend has remained relatively stable in 2025. This is an important factor for younger male drivers in Dubai to consider.
🌡 Why Dubai's Climate Affects Your Insurance Choice
Dubai's extreme climate, characterized by scorching summers and occasional sandstorms, plays a significant role in determining your car insurance needs and costs.
Sandstorm & Heat Protection Essentials
When choosing a third-party insurance policy in Dubai, consider these climate-specific coverage essentials:
Engine overheating coverage: Due to the intense summer heat, engine overheating is a common issue in Dubai. It's reassuring to know that engine overheating coverage is now included in 89% of insurance policies in 2025, providing financial protection in case your engine suffers damage due to excessive heat.
Windscreen protection add-ons: Cracked or chipped windshields are frequent occurrences in Dubai due to flying debris and sudden temperature changes. The demand for windscreen protection add-ons has risen by 40% since 2024, with an average cost of AED 120. This relatively inexpensive add-on can save you significant costs in the long run.
Look for policies covering sudden mechanical failures due to 50°C+ temperatures. The extreme heat in Dubai can cause unexpected mechanical failures in vehicles. Ensure your policy explicitly covers such incidents to avoid being left with hefty repair bills. This is a crucial consideration for all car owners in Dubai, especially those with older vehicles.
🔍 Top 5 Insurers Compared (July 2025 Update)
Here's a comparison of two prominent third-party insurance providers in Dubai as of July 2025:
1. Dubai Insurance Company
Best for: Long-term residents who value comprehensive coverage and reliability.
Price: AED 850 (basic third-party) → AED 1,100 (premium third-party with enhanced sand and heat protection). Dubai Insurance Company is a well-established provider known for its comprehensive coverage options and reliable service, making it a popular choice among long-term residents in Dubai.
2. Noor Takaful
Sharia-compliant option with 24/7 Arabic support. This makes it a preferred choice for individuals seeking insurance that aligns with Islamic principles and who value customer support in Arabic.
Unique perk: Offers free roadside assistance during the holy month of Ramadan, a valuable benefit for drivers during this important time of year.
❓FAQs: Third-Party Insurance in Extreme Heat
Here are some frequently asked questions about third-party car insurance in Dubai, with a focus on the impact of the extreme heat:
Q: Does third-party car insurance typically cover battery failures during the hot summer months in Dubai?
A: Only if the policy explicitly includes a "thermal damage" clause. Interestingly, 67% of third-party insurance plans in Dubai for 2025 now include this clause, reflecting the increasing awareness of heat-related battery issues. Always check the policy wording carefully to ensure this coverage is included if it's a concern for you.
Q: How do my parking habits in Dubai affect the pricing of my third-party car insurance?
A: Drivers who regularly use underground parking facilities in Dubai can save an average of AED 200 or more annually on their third-party car insurance compared to those who primarily park their vehicles on the street. This is because underground parking significantly reduces the risk of theft, vandalism, and damage from the harsh weather conditions, making your vehicle a lower insurance risk.
Data sources: UAE Insurance Authority 2025 Report, RTA Dubai Q2 2025 Bulletin
⚠ Always verify that the policy details fully comply with Dubai's latest 2025 traffic laws and regulations before making a purchase. Ensure all the coverage options meet your specific needs and driving habits in the UAE.
Read more:
How to Save 30% on Your Next Vehicle?
Mustafa Karim, having been deeply involved in automotive research and development for over ten years. He is fond of Japanese cars, and their precise and energy-efficient features have influenced him. In his spare time, he loves Japanese anime and kendo, drawing inspiration from them for control system research and development. He also often shares cutting-edge automotive knowledge on platforms, contributing to industry innovation and adding strength to automotive development with his expertise.
