InsuranceMarket.ae: UAE Automobile Insurance Premiums Rise – Gulf Information
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While Covid-19 is still with us, 2021 feels a little different than 2020, and like most people, life here at InsuranceMarket.ae has regained a sense of the relative "new normal". With most of Dubai now open for business and Expo2020 just around the corner, vehicles are back on the streets, although these streets are quieter.
From 2020 to June 2021, the minimum premiums fell by a total of 30 percent, while the small and steady increases that can now be observed are around 10 to 15 percent. Speaking of money instead of percentages: the average premiums for vehicle comprehensive insurance before the pandemic were around Dh 1,700, while they are now around Dh 1,300
– Avinash Babur, Founder and CEO, InsuranceMarket.ae
With the increase in vehicle use, there is also an increase in car insurance premiums. InsuranceMarket.ae's auto division has seen tariffs hike from many auto insurers in Dubai, which is no surprise. The UAE auto insurers and the insurance agency took a pragmatic approach during the height of the pandemic in 2020: applying the logic “fewer vehicles = less damage = lower premium” to the set minimum premiums for motor vehicles. Getting back on the road means some motorists will be making claims for damages again as well.
Fortunately, however, the increases we are seeing have been gradual and mainly applicable to “low cost / minimum premium” policies. Overall, it's important to note that despite these increases, we're still not going back to pre-pandemic prices. From 2020 to June 2021, the minimum premiums fell by a total of 30 percent, while the small and steady increases that can now be observed are around 10 to 15 percent. To speak of money instead of percentages, the average premiums for motor vehicle comprehensive insurance before the pandemic were around Dh 1,700, while they are now around Dh 1,300.
In the course of the economic upturn, price surcharges will apply in all branches of industry and motor insurance is no exception. The good news is that this boom as a regulated industry is steady and reasonable, just as good driving should be!