UAE drivers are currently paying an average of 13.6% more for their fully comprehensive car insurance policies than they were last year, according to an analysis from yallacompare, the Middle East’s leading comparison site.
The price increase is down to new tariffs introduced by the UAE Insurance Authority at the beginning of 2017. For fully comprehensive policies, the tariffs set new minimum premiums of AED 1,300 for saloon cars, and AED 2,000 for SUVs, bringing prices up for the majority of UAE drivers.
As was the case in March 2017, when yallacompare (then under the brand name compareit4me.com) conducted its last study on the average cost of fully comprehensive insurance policies in the UAE, drivers of low-value SUVs are the worst affected group. Insurance prices for SUVs worth less than AED 50,000 are now an average of 37.4% higher than they were last year, compared to the 6.36% increase seen by drivers of saloon cars worth less than AED 50,000.
“Insurers have adjusted their pricing methodologies over the course of 2017 to deal with the realities of the new tariffs, and it would appear that many drivers have been able to carry on without paying too much more than they were last year. However, drivers of inexpensive SUVs have seen fully comprehensive insurance prices skyrocket over the past 12 months, with the new minimum premium rates being the main driver of that,” said Jonathan Rawling, CFO of yallacompare.
“Elsewhere, most drivers are only paying around 10% more for their fully comprehensive car cover than they were last year. The only other group to see a price increase much larger than that was drivers of saloons worth between AED 100,000 and AED 150,000, who are now paying just over 14% more than they were in 2016.”