Big or small: How owning an SUV affects your insurance premium in the UAE

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  • SUVs are known as more prominent and more powerful cars than your standard passenger vehicle, making it a common choice amongst drivers in the UAE.
  • A lower SUV value could be legally more expensive to insure than an average Sedan of the same price.
  • But sometimes insurers are willing to charge higher premiums due to the way the cars are built, and since they prove to be higher risk vehicles, from rollovers to theft threats.
  • It’s important to compare your car insurance online as you could get reasonably low prices.

There are always a few things that should typically run through a person’s mind before buying a car; is it what I need? Will it last long? Is it within my budget? But one thing most people tend to overlook is how much they’re willing to pay for insuring their vehicle.

In the UAE, many people choose to buy smaller, more affordable vehicles to get from A to B. But those with families or larger budgets will choose cars such as SUVs. An SUV (Sports Utility Vehicle) is supposedly safer, given its sheer size and performance. A lot of brands have invested in the designs of their new models, making them ultra-comfortable with extra safety features, essentially creating a higher demand for this type of car.

In today’s modern world, more and more car companies have invested a lot into the design of their new SUVs, making them a lot safer and more stable on the roads. With ESC (Electronic Stability Control) systems, the likelihood of the car skidding or the driver losing control of the vehicle is decreased.

Owning an SUV doesn’t necessarily mean higher insurance premium

Car insurance companies calculate premiums based on a variety of different factors such as features of models, how well they work, the car model, the car value and the year of manufacture.

Surprisingly, a lower SUV value is by law, more expensive to insure than an average Sedan due to a higher minimum premium of at least AED 2000.

BUT! Premium SUV’s such as Porsche Cayenne or Range Rover can be cheaper to insure than a sedan of the same price due to the fact that people with families often drive them.

The lesson for today? It is crucial to always to compare your car insurance policy online as you could get reasonably lower rates. Discover your options on Aqeed. Get a Free Quote!

However, there are a few reasons why the premiums might be slightly (or a lot) higher

Rather safe than sorry

SUVs generally ride a lot ‘higher’ off the road, meaning that the distance between the car and the road is a lot greater than a regular car. This means that if involved in an accident, an SUV has a more significant chance of having a rollover accident, where the vehicle itself can roll onto its roof or side. Rollover crashes are known to be fatal as passengers aren’t protected by any airbag systems above their heads, but also, the chances of the roof caving are that much more. The height and weight of an SUV make them so much more vulnerable. With this in mind, insurance companies will charge a higher premium for more protection.

Larger car equals larger liability

SUVs are a lot larger and heavier than standard, smaller passenger cars, and therefore are more likely to cause more damage if involved in an accident. This means that if the fault is of the SUV driver, the insurance company would have a lot more to pay out due to the more considerable damages inflicted on the smaller vehicle. That’s why premiums are already set at higher rates so that insurance companies can make sure that they’re covered, as a driver won’t just pay for their losses, but the damages they cause too.

Everyone likes a good-looking car

As unlikely as it may sound in the UAE, theft poses a significant problem for SUV owners – they’re more desirable as they are stronger vehicles with more storage room. With this in mind, insurance companies are aware of the fact that covering a larger car costs much more, and will, therefore, include that cost from the start with a higher premium.

Big cars mean big parts

SUVs generally cost a lot more than a standard car, not just because of its size, but also the fact that there may be a lot more packed into it. This means that should insurance need to cover the replacement of a part or parts; it can be costly and a lot more than the average vehicle. It’s easier for an insurance company to make sure that they have their bases covered with a higher premium, while also ensuring that they’re able to cover the customer when the time comes.

Size and speed

SUV Insurance Rates in the UAE

SUVs not only bring size and height to the table, but they also have incredibly powerful engines to pull that weight. This is why most SUVs are classified as high-performance vehicles since some drivers might be inclined to drive more recklessly on the roads. Insurers tend to avoid any bias, so while they do look at a driver’s past records, they do take this factor into account when calculating a premium.

SUVs are seen as safer, more reliable and stronger vehicles on the roads of the UAE. So, if you’re considering one for your next car, make sure you understand the terms of your policy to avoid being caught off-guard.


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Aqeed is on a mission to help you become better at everything related to insurance. The articles are meant to enrich your knowledge about insurance so that you make the right choices. From the decisions you make to the options you take, you are In Sure Hands.

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