Why UAE Car Owners Are Furious Over 40% Insurance Rise
UAE car owners are angry over a sudden 40% insurance rise. This unexpected jump in costs has hit drivers hard, causing frustration and financial strain.
Why Insurance Premiums Are Rising
The recent insurance rise comes after severe floods in April 2024. Flooding damaged over 100,000 vehicles, leading to claims totalling AED 4 billion. Rising repair costs, particularly for electric vehicles (EVs), have further increased premiums. EV parts are costly and scarce, pushing insurers to raise rates.
Furthermore, insurance companies face higher costs due to reinsurance and inflation. Discounts provided during the pandemic are also disappearing, making policies more expensive.
Who’s Most Affected by the Insurance Rise?
Young drivers under 25 are hit hardest by premium hikes. Drivers involved in recent accidents face even steeper increases, sometimes as high as 30%. Many are forced to choose lower coverage or sell their cars altogether.
EV owners feel particularly affected. Their premiums have risen drastically, making sustainable driving less affordable. This disconnect between green goals and practical costs frustrates many.
Demands for Urgent Reform
To combat this growing issue, FNC member Adnan Hamad Al Hammadi is calling for urgent motor insurance reform. He insists on clearer, fairer pricing and strict limits on future increases. Despite the UAE Central Bank’s assurances of regulation, drivers want more vigorous enforcement.
The UAE motor insurance market is large, valued at USD 1.41 billion in 2024. Growth is expected due to increased online policy purchases. However, if high premiums continue, driver trust and market growth could suffer.
Conclusion
This insurance rise is a wake-up call for regulators and insurers. Transparent pricing and quick reforms are crucial to regain driver trust. How do you feel about the insurance rise? Should immediate reforms be implemented? Share your thoughts in the comments below. Stay updated with the Arabwheels Blog for more automotive news!