02-06-2025
UAE: Most residents choose multi-year fixed car insurance premiums, expect hikes soon
Nearly 8 out of 10 – 76 per cent – UAE residents are interested in securing multi-year fixed-rate car insurance policies to safeguard against future premium hikes, according to a new study released on Monday.
Global marketing research firm NIQ's latest Consumer Outlook report showed that 7 out of 10 consumers in the UAE are willing to pay a premium for products that offer durability and longevity.
Car insurance premiums have risen significantly since April 2024, increasing by a double-digit rate, prompting individuals to reconsider their spending strategies and adopt new cost-saving measures.
Over half of surveyed consumers indicated increases in their insurance premiums, and more than 80 per cent expect further hikes, forcing many consumers to adjust their financial plans accordingly.
Many car owners in the UAE believe that the primary reasons for recent insurance premium increases are the rising cost of repairs, inflation, insurance company profits and higher claim frequency.
In addition, the unprecedented rains in March and April last year were the driving force behind the surge in car insurance premiums as thousands of vehicles were damaged during rain.
The survey was conducted online across 300 car owners residing in UAE during March 2025.
Loyalty rewards
Around 7 out of 10 UAE car owners said they used to utilise loyalty rewards, no-claims discounts, and reduced coverage levels to manage costs as the cost of living rises, according to a new study released on Monday.
NIQ's Consumer Outlook report revealed many UAE consumers are shifting towards products and services that promise long-term value.
'While inflation is beginning to ease, its impact on household budgets remains. Consumers are adapting by redefining what value means to them — favouring durability, longevity, and predictability in their purchases,' said Rahul Dixit, strategic analytics and insights leader of the Arabian Peninsula and Pakistan, NIQ.
As reported by Khaleej Times last, around 7 out of 10 UAE employees said in a study conducted by Korn Ferry that the rising cost of living is outpacing their salaries, therefore, many are considering leaving their jobs within the next three months.
