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InsuranceMarket.ae forecasts car insurance trends

Filed on August 19, 2021

InsuranceMarket.ae’s motor division has been monitoring the situation closely to ensure that the best deals can be secured for customers

With Dubai well and truly open for business and Expo 2020 Dubai just around the corner, traffic both in the air and on the roads has increased this year. Life too at InsuranceMarket.ae has continued with ‘new normality’, and the firm has seen some interesting trends emerge.

The emergence from the ‘Covid-chrysalis’ has meant a resumption of driving, and a direct impact on car insurance in the UAE. Getting back on the road means that some drivers will get back to making claims too and InsuranceMarket.ae has seen an upturn in the number compared to 2020, which is starting to have an inevitable impact on prices.

During the height of the pandemic, UAE motor insurers and the Insurance Authority took an unprecedented and pragmatic approach to premium pricing, deciding to reduce minimum premiums by around 30 per cent. The ascendancy of claims in 2021, however, coupled with the increased frequency of usage has meant that some insurers have now started to increase their pricing, which the company says was expected.

InsuranceMarket.ae’s motor division has been monitoring the situation closely to ensure that the best deals can still be secured for customers. It has found that the increases being applied are gradual and mainly applicable to those policies in the ‘low-cost/minimum premium’ sector. The firm also notes that despite these increases we are still not back to pre-pandemic prices: the rises seen typically being between 10 per cent to 15 per cent only. Talking premium rather than percentages, average comprehensive costs are now Dh1,300 against a pre-pandemic price of Dh1,700. InsuranceMarket.ae’s message to customers is there are still deals to be had if you ask the experts, and that as a regulated industry, upturns in insurance costs are steady and sensible, just like their driving should be.

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