When it comes to calculating car insurance premiums, several factors come into play—driver’s history, vehicle make and model, location, and more. However, one key factor that many drivers often overlook is the age of the vehicle. In the UAE, where vehicle ownership is both a necessity and a lifestyle choice, understanding how your car’s age impacts insurance costs is crucial for making informed financial decisions.

Whether you’re driving a brand-new SUV or a ten-year-old sedan, this blog will walk you through how car age affects your premiums and what it means when you buy car insurance UAE or search for reliable motor insurance UAE.

Understanding How Car Insurance Works in the UAE

Before diving into how vehicle age affects your premiums, it’s important to understand the basics of motor insurance UAE regulations. In the Emirates, all vehicle owners are legally required to have at least third-party liability insurance to drive on public roads. However, many opt for comprehensive insurance to enjoy broader coverage.

Insurers consider various risk factors when calculating premiums. These include:

• Driver’s age and driving history

• Car’s make, model, and engine size

• Geographic location

• Intended usage (personal or commercial)

• Vehicle value and age

Among these, vehicle age stands out as an influential factor that can both increase and decrease your insurance costs.

Why Vehicle Age Matters

Insurers are primarily concerned with risk—the probability that they will have to pay out a claim. The age of your car plays a significant role in that equation. Here’s how:

1. Depreciation and Value

As cars age, they depreciate in value. A brand-new vehicle loses a significant portion of its value in the first few years. Insurance companies take this depreciation into account when assessing how much they’d need to pay in the event of a total loss.

• New cars: Higher value = higher replacement cost = higher premiums.

• Older cars: Lower value = lower replacement cost = lower premiums.

That said, while premiums may go down because of lower car value, older vehicles might lack advanced safety features, increasing the likelihood of claims.

2. Repair Costs

Newer vehicles, especially those with high-end tech and imported components, often have higher repair costs. Insurers charge more to cover these repairs. Conversely, older cars may have cheaper repair parts but could be prone to frequent breakdowns.

• A 1-year-old car with advanced electronics might cost more to fix.

• A 10-year-old car may need repairs more often, affecting risk perception.

Thus, car age affects repair expectations, influencing how companies price motor insurance UAE policies.

3. Availability of Spare Parts

Insurers also consider how easy it is to source spare parts. For older or discontinued models, parts may be hard to find, causing higher repair costs and longer claim cycles. This could increase your premium despite the car’s low market value.

4. Safety Features and Technology

Newer cars are equipped with modern safety systems such as autonomous emergency braking (AEB), lane assist, and multiple airbags. These features reduce the likelihood of severe accidents and hence reduce risk for insurers.

Older vehicles might not have these safety features, leading to a higher chance of injury or damage in case of a collision.

Impact on Comprehensive vs Third-Party Insurance

The effect of car age on insurance premiums also varies depending on the type of insurance you choose.

Comprehensive Insurance

This covers both third-party liability and damage to your own vehicle. The age of your car significantly affects comprehensive premiums.

• New cars: Likely to attract higher premiums due to higher replacement cost and value.

• Cars over 7 years old: Insurers might even refuse comprehensive cover or charge high premiums due to potential mechanical failures and lack of safety features.

Third-Party Insurance

This is the minimum legal requirement and only covers damage to others. The age of your car has less impact on the premium here, but you still need to meet insurer requirements, especially for very old cars.

For very old vehicles (10+ years), third-party insurance might be the only option, as comprehensive cover becomes either unavailable or unreasonably expensive.

How Age Interacts with Other Risk Factors

It’s not just about how old your car is—insurers also assess how vehicle age interacts with other risk factors.

Vehicle Type and Usage

• A 5-year-old sports car may still attract high premiums due to its power and risk factor.

• A 7-year-old sedan used for daily commuting may have lower premiums.

Driver Profile

A safe driving record can help lower premiums even for older cars, while a history of accidents may lead to higher premiums regardless of car age.

Tips to Reduce Premiums on Older Cars

If you’re driving an older vehicle in the UAE and are concerned about high premiums, here are a few ways to keep costs down:

1. Switch to Third-Party Insurance

Once your car is more than 5–7 years old and its market value has dropped, comprehensive insurance may not be worth the cost. Consider switching to third-party insurance, especially if your vehicle’s repair cost would be close to or exceed its market value.

2. Install Aftermarket Safety Features

Adding dash cams, anti-theft systems, or rearview cameras can reduce your risk profile and make insurers more willing to offer competitive rates, even for older vehicles.

3. Maintain Your Car Well

A car with a clean service history is more likely to be insured at a lower rate. Routine maintenance shows the insurer that your vehicle is less likely to break down or be involved in an accident.

4. Compare Quotes

Don’t just renew your old policy—compare different buy car insurance UAE platforms to find the best deal tailored to your car’s age and condition.

At What Point Is Insurance No Longer Worth It?

For vehicles over 10 years old, especially those with low resale value, insurance costs can become disproportionate. You might end up paying more in premiums over the year than the car is actually worth.

In these cases:

• Assess whether you truly need comprehensive coverage.

• Consider whether it’s financially smarter to set aside a repair fund.

• Check if the insurer offers “declining value coverage” or “agreed value coverage” for old cars.

Regulatory Considerations in the UAE

The UAE’s Insurance Authority sets broad regulations for vehicle insurance, but insurers still have flexibility in pricing based on risk.

Registration Rules for Older Cars

Vehicles over 10–15 years old must pass stringent RTA inspections to be re-registered. If your car fails inspection, it may be deemed unfit for use, impacting your insurance eligibility.

Salvage or Repaired Vehicles

If your older car has been salvaged or rebuilt, insurers may either refuse coverage or charge extremely high premiums.

Should You Insure a Classic Car Differently?

If your old car is a classic or collectible, standard insurance policies may not suffice. You’ll likely need specialized insurance that accounts for the car’s rarity, restoration costs, and agreed value.

While these policies are priced differently from regular motor insurance UAE, they offer better value and coverage for rare or vintage vehicles.

Key Takeaways

The age of your car has a direct and often significant effect on your insurance premiums in the UAE. Whether you’re shopping to buy car insurance UAE for a new or old vehicle, here’s what to remember:

• Newer cars often come with higher premiums due to value and repair costs, but benefit from advanced safety features.

• Older cars might have lower premiums, but risk being denied comprehensive coverage or facing higher repair-related costs.

• Safety features, maintenance history, and driving behavior also play vital roles in determining your premium.

• For older cars, third-party insurance may be the most practical and affordable option.

• Always compare multiple quotes and consider your car’s current market value before renewing or purchasing a new policy.

By understanding the impact of your car’s age on insurance costs, you can make better choices that suit your driving habits, financial goals, and legal obligations.

Final Thoughts

While your vehicle’s age is only one piece of the puzzle, it’s a powerful factor in shaping your car insurance experience in the UAE. Whether you’re insuring a fresh-off-the-lot luxury car or an older but reliable sedan, take the time to assess your options.

Don’t just go with the first quote you receive. Compare providers, explore discounts, and ask about policies suited for your vehicle’s age. With the right approach, you can find affordable, effective motor insurance UAE coverage that meets your needs—no matter how old your car is.