Annual motor premium as a percentage of your car value.
Annual premium
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Monthly equivalent
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Premium before VAT
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Premiums track your car’s value, not a flat fee
Motor insurers in the UAE quote comprehensive cover as a percentage of the car’s current market value. That is the lever this estimator pulls. You enter the value and a rate, and it multiplies the two, then adds VAT. The default rate of 3 percent for comprehensive and 1.25 percent for third-party are the starting points this calculator applies, drawn from typical market ranges rather than a fixed tariff. Your actual quote depends on the make, your age, your years of no-claims history, and sometimes your nationality and licence origin, so treat the output as a budgeting estimate and get firm quotes before you commit.
Comprehensive pays for damage to your own vehicle plus liability to others. Third-party only covers harm you cause to other people and their property, which is why it is so much cheaper and why it is the legal minimum. Drivers of older, lower-value cars often drop to third-party once a vehicle is no longer worth insuring fully.
The 5 percent VAT line, explained
Insurance premiums are a taxable service in the UAE, so 5 percent VAT applies on top of the base premium. This is the standard VAT rate the calculator uses, administered by the Federal Tax Authority; it has been 5 percent since VAT was introduced, though you should confirm the current rate with the FTA. The tool shows you both the pre-VAT figure your insurer prices and the VAT-inclusive total you actually pay, because the gap is easy to overlook when you compare quotes.
A 90,000 dirham car on comprehensive cover
Using the defaults, a car valued at AED 90,000 on comprehensive cover at 3 percent gives the figures below. The rates this calculator applies produce an annual premium of AED 2,835 once VAT is added.
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The chart splits that AED 2,835 into the base premium and the VAT slice sitting on top.
Why next year’s premium should fall
Here is the practical insight most renewal notices bury. Because the premium is a percentage of value, and your car loses value every year, the same rate produces a smaller bill at each renewal. If your AED 90,000 car is worth AED 75,000 next year, a 3 percent comprehensive rate drops the base premium to AED 2,250 before VAT. So when a renewal quote arrives flat or higher, that is a signal to shop around or to ask the insurer to reprice against the car’s depreciated value. A clean claims record should also pull your rate down over time. This estimator is for anyone budgeting their running costs or sanity-checking a renewal, not a substitute for a binding quote.
Is comprehensive cover worth it on an older car?
It depends on the car’s value. Comprehensive makes sense while the vehicle is worth enough that repairing or replacing it out of pocket would hurt. Once the value drops low, the comprehensive premium can approach what a payout would be worth, and many owners switch to third-party. Run both cover types in the tool and compare the annual cost against the car’s value to decide.
Does agency repair cost more to insure?
Yes, usually. A policy that guarantees repairs at the manufacturer’s agency, rather than an independent garage, typically carries a higher rate because parts and labour cost more. Newer cars under warranty often need agency repair to keep the warranty intact. If your car is older, a non-agency policy at a lower rate can be a sensible saving.