Dealers complain of an increase in the prices of renewing vehicle insurance policies

Insurance policyholders have complained about the high prices for renewing insurance policies, especially for old cars and some luxury and high-performance models.

For their part, two insurance experts told Emirates Al-Youm that the vehicle insurance market in the country has become more dependent on pricing based on the level of risk for each customer, instead of applying uniform increases to all policies, noting that the market is witnessing healthy competition within an advanced regulatory and accounting framework that aims to achieve a balance between protecting the insured and maintaining the financial solvency of insurance companies.

They explained that competition between insurance companies is strong, which has contributed to prices remaining within stable and largely reasonable levels, with increases or reductions for specific cases according to risk assessment.

High prices

In detail, insurance policyholders complained about the high prices for renewing insurance policies, especially for old cars and some luxury and high-performance models.

Dealers told Emirates Today that they were surprised by the increase in the value of insurance policy premiums upon renewal, compared to last year, despite not registering insurance claims during the policy period, noting that the increases were more noticeable for vehicles that were more than several years old, in addition to luxury cars that require expensive spare parts and maintenance at authorized dealers.

Risk level

In comment, insurance expert Bassam Gilmiran said, “The vehicle insurance market in the UAE has become more dependent on pricing based on the level of risk for each customer, instead of applying uniform increases to all policies,” pointing out that “this trend reflects the development of underwriting tools and the use of data to determine prices more accurately.” Glimran added to Emirates Today: “I do not see that the first half of the current year 2026 witnessed a general rise in the prices of insurance policies. Competition between insurance companies is still strong, which contributed to prices remaining at largely stable levels, with limited increases in some branches of insurance, or risks in which claims rates or reinsurance costs increased.”

Glimran explained: “It is important to note that the UAE insurance market is one of the most regulated markets in the region. The UAE Central Bank requires insurance companies to conduct a periodic review of their prices through an independent actuary, who prepares technical reports that are submitted to the Board of Directors and to the Central Bank, to ensure that the prices are based on sound technical foundations and achieve the financial sustainability of the company.”

He pointed out that the application of the “IFRS 17” standard enhanced discipline in the pricing process, as it became necessary for companies to evaluate the adequacy of their prices from the beginning of underwriting for each branch of insurance, and if the actuarial or auditors’ reports show a deficiency in pricing, the company is obligated to make the necessary accounting allocations, which makes continuing the non-technical pricing policy very difficult.

Gilmerand continued: “Therefore, competition in the market no longer depends solely on lowering prices, but rather on the quality of underwriting, technical risk management, and the profitability of the insurance portfolio. Companies that achieve good technical results and adhere to the principles of sound pricing have greater flexibility in providing competitive prices, while companies that suffer from poor results are forced to adhere to the technical limits imposed by actuarial studies.”

Glimran stressed that “the UAE insurance market is witnessing healthy competition within an advanced regulatory and accounting framework, which aims to achieve a balance between protecting the insured, maintaining the financial solvency of insurance companies, and enhancing the sustainability of the sector in the long term.”

Relative stability

For his part, insurance expert, Montaser Khasawneh, said: “The prices of vehicle insurance policies in the UAE witnessed a state of relative stability during the first half of this year, despite some insurance companies adjusting their prices for specific categories of customers and vehicles, in light of the continued competition between companies, and the absence of indications of general increases covering the entire market.”

He added: “Some vehicle insurance categories witnessed price adjustments during the first half of 2026, but they were not general increases, but rather were linked to the nature of the risks, the claims record, the type of vehicle, and the underwriting policy of each company.”

Khasawneh continued: “Competition between insurance companies is still strong, which has contributed to keeping prices within reasonable levels in general, with increases or reductions in specific cases according to risk assessment. In general, insurance companies adhere to the regulatory framework and instructions issued by the Central Bank of the Emirates, including controls related to pricing, and the lower and upper limits, with prices varying between one company and another according to its technical policies and underwriting standards.”

Price range of insurance policies

Despite the stability of the price limits for mandatory vehicle insurance policies in the UAE, during the past year and the first six months of the current year 2026, the market witnessed varying increases and limited percentages in the prices of some policies upon renewal, as a result of factors related to risk assessment, operating costs, and insurance claims.

The insurance price tariff system approved in the country specifies a price range for documents. The price of insuring private four-cylinder saloon cars starts from a minimum of 750 dirhams and reaches a maximum of 1,300 dirhams, while the price limits gradually rise according to the vehicle category and engine capacity, reaching 2,100 dirhams in some categories.

Although these regulatory limits have not changed compared to last year, some insurance policies recorded slight increases in actual pricing, which varied from one vehicle to another according to several factors, including accident history, the age of the driver, the type of vehicle, and the high costs of repairs and spare parts.

This reflects the flexibility of insurance companies in determining the final price within the permissible range, while prices continue to be subject to controls set by regulatory authorities in the country.

“Central Bank”: Growth of the insurance market

Data from the Central Bank of the Emirates showed the continued growth of the insurance market in the country during the first quarter of the current year 2026, as the total written premiums increased by 15.1% on an annual basis, reaching 27.5 billion dirhams, compared to the same period last year.

Among general insurance branches, property and liability insurance premiums amounted to about 10 billion dirhams during the first quarter, an annual increase of 11.1%. This sector includes vehicle insurance along with a number of other insurance products, and the total claims paid in the insurance sector increased by 14.5% to reach 12.6 billion dirhams during the same period.