You compare two policies. One looks much cheaper. So you take it. Then you claim, and the insurer deducts money from your payout. That money is your car insurance excess.
Here is the part most drivers miss. In the UAE, excess is not something each insurer invents. The regulator caps it. So there are legal limits on what any company can charge you.
This guide sets out those official limits, the extra charges that can apply, and the two cases where you pay nothing at all. Every figure below comes from the Central Bank of the UAE rulebook.
What Is Car Insurance Excess?
In short, car insurance excess is the amount you carry yourself when you claim. Your insurer pays the rest. The rulebook calls it the Basic Deductible.
Because you carry part of the cost, the insurer charges you less premium. Therefore the two numbers move in opposite directions.
- Higher excess means a lower premium. But you pay more when you claim.
- Lower excess means a higher premium. However, a claim then hurts far less.
Importantly, the insurer charges the excess to whoever caused the accident. So fault matters, and we come back to that below.
The Official Car Insurance Excess Limits in the UAE
Schedule 3 of the Unified Motor Vehicle Insurance Policy sets a maximum for each car band. In other words, these are ceilings, not fixed prices. So your insurer may charge less, but never more.
| Vehicle (private, up to 9 passengers) | Maximum excess per accident |
|---|---|
| Value up to AED 50,000 | AED 350 |
| AED 50,000 – 100,000 | AED 700 |
| AED 100,000 – 250,000 | AED 1,000 |
| Over AED 250,000 | AED 1,200 |
| Over AED 500,000 | AED 1,400 |
| 10 to 12 passengers | AED 1,500 |
| Over 12 passengers, rental vehicles, trucks over 3 tons | AED 1,700 |
| Trucks over 3 tons, buses, industrial vehicles | AED 4,500 |
Source: Schedule No. (3), CBUAE Rulebook. So if a quote shows a higher basic excess than your band allows, question it.
The Extra Percentage Excess
Next comes the part that surprises people. On top of the basic amount, the insurer may add a percentage of the claim. However, this only applies to the driver who caused the accident.
Specifically, the rules allow these limits:
- Driver under 25 years old — up to 10% of the payout.
- Taxi and public transport vehicles — up to 10%.
- Sports cars and modified vehicles — up to 15%.
- Vehicles modified outside the factory — up to 20%.
- Rental vehicles — up to 20%.
Now here is the good news. If more than one applies, the insurer takes only the highest single percentage. So they do not stack them together.
Notably, this matters most for two groups. First, families with a driver under 25. Second, anyone driving a sports car or a modified vehicle. Therefore check the driver list on your policy carefully.
When You Do Not Pay Any Excess
There are two clear cases. Both come straight from the rules.
You Did Not Cause the Accident
The rulebook is specific here. The insurer may charge the deductible to the insured who caused the accident, or where an unknown person caused it. So if the police report puts the fault on the other driver, the excess should not fall on you.
Car Insurance Excess on a Total Loss
In a total loss, the percentage deductibles do not apply at all. Therefore a written-off car does not attract the extra 10%, 15% or 20% charge.
Still, always ask your insurer to show you the clause. You can read it yourself in Chapter Three of the unified policy.
Excess or Premium: How to Decide
So which way should you go? So ask yourself one simple question. Could you pay the excess tomorrow, without stress, if you had an accident today?
If yes, a higher excess usually saves you money over time. You keep the premium saving every year. Meanwhile, you only pay the excess when you actually claim.
If no, take the lower excess instead. Yes, you pay a bit more each year. But a claim will not put you in a difficult spot.
Also think about who drives the car. A driver under 25 changes the maths completely, because of that extra percentage. So run the numbers with them included.
How to Lower Your Car Insurance Excess
First, ask for quotes at two excess levels. Insurers can price the same cover both ways. Then you compare the premiums side by side.
Second, check your car band. Your basic excess follows the car value. So confirm the insurer has placed you in the right band.
Third, review the driver list. If a driver under 25 no longer uses the car, remove them. As a result, that 10% percentage falls away.
Fourth, think before you modify. Modifications outside the factory can push your percentage to 20%. Therefore weigh that against the look.
Finally, read the schedule before you sign. Ask the insurer to point out every excess line. If they cannot explain it simply, that tells you something.
Frequently Asked Questions
What does car insurance excess mean?
Basically, it is the amount you carry yourself on a claim. Your insurer pays the rest. The UAE rulebook calls it the Basic Deductible.
Is excess the same as deductible?
Yes. In other words, the two words mean the same thing. UAE regulation says deductible, while most people say excess.
What is the maximum car insurance excess in the UAE?
Generally, it depends on your car band. For a private car worth up to AED 50,000, the maximum is AED 350 per accident. For a car above AED 500,000, it reaches AED 1,400.
Do I pay excess if the accident was not my fault?
Generally no. The regulation places the deductible on the party who caused the accident. So a police report naming the other driver protects you.
Does a young driver increase my car insurance excess?
Yes. Specifically, if the driver was under 25, the insurer may add up to 10% of the payout on top of the basic amount.
Do several percentages add up together?
No. Instead, where more than one applies, only the highest single percentage is used.
Do I pay excess on a total loss?
The percentage deductibles do not apply in a total loss. However, check your own schedule for the basic amount.
Related guides: car insurance claim UAE | agency repair car insurance
Compare Car Insurance in the UAE
A car insurance excess figure never travels alone. A quote is not just a price. It is a price attached to an excess, a repair type and a list of exclusions. So compare all of it, not only the headline number.
Meanwhile, GS Insurance Services checks these details across a panel of licensed UAE insurers. As a result, you see what you would actually pay on a claim day.
Request your free car insurance quote → | See our car insurance service
Read next: our full guide to car insurance in Dubai and the UAE, or how to cancel car insurance in the UAE.
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Figures above come from the Unified Motor Vehicle Insurance Policy Against Loss and Damage (Insurance Authority Board Decision No. 25 of 2016), which the Central Bank of the UAE now maintains. They are regulatory maximums, so your own policy schedule may show less. GS Insurance Services works as a sales intermediary; a licensed UAE insurer issues every policy we arrange. This article is general information, not advice on your specific policy.
