UAE Motor Insurance Market Size, Share, Trends and Forecast by Insurance Type, Distribution Channel, and Region, 2025-2033

UAE Motor Insurance Market Overview:

The UAE motor insurance market size reached USD 4.56 Billion in 2024. The market is projected to reach USD 7.82 Billion by 2033, exhibiting a growth rate (CAGR) of 5.54% during 2025-2033. The market is driven by accelerated digital transformation and automation across insurance operations, enabling streamlined policy management and enhanced customer engagement. Additionally, the rising adoption of telematics and usage-based insurance models is allowing insurers to offer personalized premiums based on real-time driving behavior, thus expanding the UAE motor insurance market share.

UAE Motor Insurance Market Trends:

Mandatory Motor Insurance Regulations

A key factor influencing the market in the UAE is the compulsory insurance requirement for every vehicle owner. Legally, every vehicle must have insurance before being permitted on the roads, guaranteeing a steady and expanding clientele for insurers. This regulation ensures safety for drivers and third parties in the event of accidents while generating consistent demand for insurance products nationwide. With the growth of population and economy in the UAE, the count of registered vehicles is rising, leading to an ongoing increase in the number of insured cars. Strict enforcement by traffic authorities and the necessity for legal adherence leave drivers with no choice but to obtain insurance. As a result, compulsory coverage serves as a crucial engine, supporting the expansion and stability of the UAE motor insurance sector.

Growth in Vehicle Ownership and Sales

The rapid increase in vehicle ownership and sales across the UAE is positively influencing the market. Rising disposable incomes, urbanization, and consumer preferences for luxury cars are fueling purchases in the country. The UAE’s vibrant economy, coupled with the availability of easy financing and leasing options, is making vehicles more accessible to residents. With each new vehicle purchase, insurance policies are required, thereby expanding the market. Additionally, the growing expat population is contributing significantly to rising car ownership, particularly in cities like Dubai and Abu Dhabi. Seasonal demand for rental cars is also boosting motor insurance coverage, as fleets require comprehensive policies. This steady growth in both personal and commercial vehicle ownership is directly correlated with increased demand for motor insurance.

Increasing Road Traffic and Accident Rates

The rising levels of road traffic and associated accident risks are impelling the UAE motor insurance market growth. With more vehicles on the roads, particularly in busy urban centers, the likelihood of collisions and claims increases. Insurers play an important role in mitigating these risks by offering policies that cover damages, liabilities, and medical costs. High accident rates also encourage drivers to opt for comprehensive insurance rather than just basic coverage, boosting premium revenues for insurance providers. Moreover, the government is focusing on road safety and accident reporting, which is strengthening the need for reliable insurance solutions. Insurers are also innovating by offering risk-based pricing and telematics to encourage safer driving, while still ensuring adequate coverage. Thus, the persistent challenge of road safety continues to drive the demand for motor insurance in the UAE.

Expanding Automotive Leasing and Rental Sector

The leasing and rental industry in the UAE is expanding rapidly, propelling the market growth. Many residents and tourists prefer renting or leasing vehicles instead of buying due to the convenience, flexibility, and lower upfront costs. These fleets require mandatory insurance coverage, often with comprehensive policies that protect against damage, theft, and third-party liabilities. With tourism recovering strongly and business travel increasing, the demand for short-term rentals is growing, promoting the adoption of insurance. Similarly, corporate fleets and long-term leasing agreements are contributing to insurance revenues. Insurance companies benefit from these partnerships, as bulk policies for rental firms create steady business streams. The continuous expansion of the rental and leasing sector in the UAE ensures sustained demand for motor insurance.

Digital Transformation and InsurTech Adoption

The UAE motor insurance market is also being driven by digital transformation and the growing adoption of InsurTech solutions. Consumers are increasingly turning to online platforms and mobile applications to compare, purchase, and renew motor insurance policies. This convenience, transparency, and competitive pricing attract more customers, particularly tech-savvy younger drivers. Insurers are adopting digital tools like artificial intelligence (AI)-driven claims processing, telematics for usage-based policies, and blockchain for secure transactions, which enhance efficiency and customer satisfaction. Moreover, the encouragement for digitization across sectors is supporting this shift, making insurance more accessible to residents and expatriates. These innovations not only improve user experience but also encourage the usage of more advanced insurance products. The integration of digital solutions ensures faster growth, greater customer engagement, and broader reach, firmly positioning technology as a critical driver of the market expansion.

UAE Motor Insurance Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on insurance type and distribution channel.

Insurance Type Insights:

• Third Party Liability
• Comprehensive

The report has provided a detailed breakup and analysis of the market based on the insurance type. This includes third party liability and comprehensive.

Distribution Channel Insights:

• Agents
• Brokers
• Banks
• Online
• Others

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes agents, brokers, banks, online, and others.

Regional Insights:

• Dubai
• Abu Dhabi
• Sharjah
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Dubai, Abu Dhabi, Sharjah, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UAE Motor Insurance Market News:

• In July 2025, AutoData Middle East introduced an advanced set of AI-oriented intelligence tools aimed at refining pricing precision, enhancing risk assessment, deterring fraud, and increasing profitability throughout the used car and insurance sectors. Driven by accuracy, clarity, and extensive local knowledge, AutoData’s AI-enhanced tools provided a smarter path ahead.
• In May 2025, Policybazaar.ae, the top online insurance platform in the UAE, broadened its main initiative, PB Advantage, to include car insurance customers, transforming how UAE residents could handle motor coverage and car insurance claims. With complimentary car washes, fixed-rate savings on maintenance and repairs, along with exclusive deals on the Registration Readiness Package, these perks aimed to improve the daily car ownership experience.

UAE Motor Insurance Market Report Coverage:

Key Questions Answered in This Report:

• How has the UAE motor insurance market performed so far and how will it perform in the coming years?
• What is the breakup of the UAE motor insurance market on the basis of insurance type?
• What is the breakup of the UAE motor insurance market on the basis of distribution channel?
• What is the breakup of the UAE motor insurance market on the basis of region?
• What are the various stages in the value chain of the UAE motor insurance market?
• What are the key driving factors and challenges in the UAE motor insurance market?
• What is the structure of the UAE motor insurance market and who are the key players?
• What is the degree of competition in the UAE motor insurance market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UAE motor insurance market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UAE motor insurance market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UAE motor insurance industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.