Why is motor insurance mandatory in the UAE?

In the UAE, motor insurance is mandated under Federal Law No.6 of 2007 to ensure that all drivers are financially protected in the event of an accident. In case of property damage or injuries to third parties, it helps to cover the costs of vehicle damage, medical expenses, and third party liabilities. Motor insurance ensures that drivers have enough coverage, mitigates financial burdens, and holds drivers accountable for damages that happen from accidents. In the UAE, there are two different types of motor insurance:

• Comprehensive insurance
• Third liability insurance