Can you get a no claims discount on your car insurance?
Your insurer may reduce the minimum premium by 10%, 15% or 20% if you caused no accident leading to a claim in the last one, two or three years. A 10% loyalty reduction can apply when you renew with the same insurer. Your insurer must give you a free certificate of your insurance experience.
A no claims discount is a reduction in your premium for a record without claims. In the UAE the reductions are in the motor tariff, the regulator’s price rules.1
The unified policies are the standard wording UAE insurers must use.2 Neither uses “no claims” or “claim-free”.3,4 That says nothing about your insurer’s Schedule, so check yours.
How much can your claim-free record take off?
Your insurer may take off 10%, 15% or 20% of the minimum premium, depending on how many years you go without causing a claim. A 10% loyalty reduction can also apply when you renew with the same insurer.1 These are for an individual applicant, on third party insurance and on loss and damage insurance.
| Your record | Share of the minimum premium |
|---|---|
| You did not cause an accident leading to a claim in the previous insurance year | 10% |
| Same, in the previous two years | 15% |
| Same, in the previous three years | 20% |
| Loyalty. You renew with the same insurer and the insurance is not transferred to another person | 10% |
Fig. 1.The claim-free steps stop at 20% of the minimum premium
Share of the minimum premium, by record. These are percentages, not prices.
4 categories. Highest: Three years, 20%. Lowest: Loyalty at renewal, 10%.
Data and source
Source: CBUAE Rulebook, Insurance Authority Decision No. (30) of 2016, Art 2(3). Accessed 4 Nov 2026.
| Your record | Share of minimum premium |
|---|---|
| Three years | 20% |
| Two years | 15% |
| One year | 10% |
| Loyalty at renewal | 10% |
Can your accident-free record get you a 50% discount?
The tariff lists one. It is a 50% discount of the minimum premium for six groups, and individual applicants with accident-free records are one of those groups.1 It was added in 2020 as a coronavirus measure, to apply until the end of the crisis period as decided by the competent authorities.5 The tariff does not say whether it still applies. Ask your insurer.
The tariff does not say how long your record must be accident-free, and does not define the term. It does not say how the 50% fits with the 10% to 20% steps, or whether it replaces them for the same applicant.
Must your insurer give you these reductions?
Your insurer may offer them. For the loyalty reduction and the 50% discount, the English wording is unclear on whether it must. Ask your insurer.1
Is the percentage taken from your own premium?
The tariff measures it against the minimum premium. It does not say how the percentage works on a premium set above the minimum, or whether the result can fall below the minimum.1 Ask your insurer.
The minimums are regulated figures for a class of vehicle, not prices for any person or model. All are for a 13-month period. For loss and damage with third party cover, the tariff sets AED 1,300 for a Salon and AED 2,000 for a four-wheel drive. For third party cover, it sets AED 750 for a private four-cylinder Salon.1
Table 2 applies the tariff’s percentages to four of its minimums. The 20% step comes to AED 150 on the third party minimum for a private four-cylinder Salon, and AED 260 on the Salon minimum for loss and damage with third party cover.
| Your cover and vehicle | Minimum (AED) | 10% (AED) | 15% (AED) | 20% (AED) | 50% (AED) |
|---|---|---|---|---|---|
| Third party, private Salon, 4 cylinders | 750 | 75 | 112.50 | 150 | 375 |
| Third party, private four-wheel drive, 4 cylinders | 1,000 | 100 | 150 | 200 | 500 |
| Loss and damage with third party, Salon | 1,300 | 130 | 195 | 260 | 650 |
| Loss and damage with third party, four-wheel drive | 2,000 | 200 | 300 | 400 | 1,000 |
The 50% column is the discount in the section above, and the tariff does not say whether it still applies.
Does every claim count against your record?
The tariff does not define “cause”.1 Ask your insurer how it treats your situation.
| Your situation | What the tariff says |
|---|---|
| Another driver caused the accident in your car | Not stated |
| You claim on an accident you did not cause | No separate rule. The 10% to 20% steps refer only to accidents you caused |
| What happens to your reduction after a claim | Not stated |
| More than three claim-free years | The 10% to 20% steps stop at 20% |
| You move to a new insurer | The 10% to 20% steps do not require the same insurer. The loyalty reduction does |
| A company or fleet owns the car | The rule names the individual applicant. Fleets have a separate reduction, in Table 6 |
How do you prove your claim-free record?
Ask your insurer for a certificate of insurance experience. It must give you one, free of charge.1
| Your question | What the tariff says |
|---|---|
| Who receives it? | The customer who was insured with the company |
| When? | Immediately |
| What does it cost? | Free of charge |
| In what form? | Electronic or written |
| What does it show? | The insurance experience for the previous years |
| Who answers for its accuracy? | The company is liable for the data in the certificate |
The tariff does not give a number of days for “immediately”. It does not say how many previous years, what format, or whether another insurer must accept the certificate. It does not mention certificates from insurers outside the UAE. Ask the new insurer what it accepts. If you need to complain, the route is in the Sanadak complaints guide.
What will your own insurer’s no claims terms say?
They vary, and they can use a different measure from the tariff. GIG Gulf, Liva, RAK Insurance and Watania Takaful each print their own rule.6,7,8,9,10 Check your Schedule and wording.
| Insurer and document | What it says |
|---|---|
| GIG Gulf, Prestige and Perfect handbooks | A discount in your renewal premium if you do not claim, by its scale at renewal. After a claim it may be reduced on its step back scale. A windscreen or replacement locks claim does not affect it |
| Liva, wording dated 29 April 2024 | A discount when you give evidence of no claims from your previous insurer or have a claim-free record with Liva. Protection is a separate cover, with limits that include no more than 2 claims in 3 consecutive years and AED 50,000 of claim payments in that time |
| RAK Insurance, Full Option additional covers | Returns 5% of the premium at renewal with RAK if no claim was paid or payable. The renewal premium after the return may not fall below the applicable minimum |
| Watania Takaful, motor terms | Reduced at your next renewal if you claim. Increased on its scale if you do not. Not transferable to anyone |
GIG Gulf’s consumer guide gives a general example of up to 10% to 20% after one claim-free year and up to 20% to 30% after two, and says it varies by insurer.11 Those figures differ from the tariff’s steps in Table 1. Ask your insurer which percentage it applies and what it is taken from.
What other reductions could you get?
It depends on your vehicles and how your policy is priced. These use different tests from the claim-free steps.1
| If you have | What the tariff says |
|---|---|
| A fleet of five or more vehicles or motorcycles under one owner | Your insurer may give up to 30% of the minimum premium |
| A vehicle running on gas or electricity, at renewal | Your insurer may give up to 25% of the premium, taking account of accidents caused by the vehicle that led to claims |
| A new or renewed policy priced by kilometres driven, at your request | Your premium may not exceed the tariff maximum. Added in 2020, to run until the end of the coronavirus period |
The Central Bank’s consumer brochure puts the gas and electric reduction differently. It says that at renewal the discount “shall be 25% of the minimum rate”, taking the customer’s accident record into account.12 The tariff says up to 25% of the premium. Both wordings are shown here because they differ. The EV insurance guide covers the gas and electric reduction.
Can you combine your reductions?
The tariff does not settle this. It says only the highest rate applies where there is more than one reason for a reduction, but that line sits in the rule on gas and electric vehicles. It does not say whether the line also covers these discounts.1 Ask your insurer.
The small print
- Where the reductions sit. The motor tariff is Insurance Authority Decision 30 of 2016. Table 1 is Art 2(3)(a) to (d), and Art 2(3) says the company “may grant” them. Art 2(7) applies them to third party insurance and to loss and damage insurance.1
- “May grant” and “shall be granted”. Art 2(3) opens “may grant”. In the English Rulebook text, para (d) says the loyalty reduction “shall be granted” to the owner at renewal with the same insurer. Para (e) says a 50% discount “shall be granted” to six groups, one of which is individual applicants with accident-free records.1 The Arabic of para (d) says “ويمنح”, is granted (our translation). The Arabic of para (e) has no such verb.13,14 The page on car insurance above 60 sets out both readings of “may grant” and “shall be granted”.
- The 50% discount. Para (e) came from Resolution 17 of 2020, a coronavirus measure that applies until the end of the crisis period, as decided by the competent authorities.5 Accident-free records are group 6 of para (e). The Arabic uses one phrase, “السجل الخالي من الحوادث”, in both the opening of Art 2(3) and group 6. The English has claim-free in the opening and accident-free in group 6.
- “Cause”. Paras (a) to (c) refer to the owner of the vehicle that did not cause an accident leading to a claim.1 The Arabic ties it to the owner, not the vehicle.13
- The certificate. This is Art 2(4), which says the insurance company “shall comply” with providing it.1
- Other reductions. The fleet reduction is Art 2(5) and the gas and electric reduction is Art 2(6). Both say “may grant”. The kilometre rule is Art 2(11), added by Resolution 17 of 2020.1 The highest-rate line ends Art 2(6).
- Minimum premiums. AED 1,300 and AED 2,000 are in Table 2 of the tariff. AED 750 and AED 1,000 are in Table 1 of the tariff.1
- Insurers. All four in Table 5 are on the Central Bank’s September 2026 register. RAK Insurance is Ras Al Khaimah National Insurance Company P.S.C.15
- Status of the tariff, as of 6 November 2026. The Rulebook shows the tariff, effective 1 January 2017, as In-Force. It labels the text as consolidated on 1 January 2018, yet lists amendments by Decision 41 of 2017 and Resolution 17 of 2020 and calls this the latest version.1 Art 2(3)(a) to (d) and Art 2(4) to (7) were added by Decision 41 of 2017, in force from 1 January 2018.13 Art 2(3)(e) and Art 2(10) and (11) were added by Resolution 17 of 2020.5 Art 2 on the Arabic Rulebook page for the tariff still lacks them.16
- Later laws. Regulations issued under Federal Law 6 of 2007 stay effective until replaced, so far as they do not conflict with Decree-Law 48 of 2023 (Art 114(2)). Regulations issued under that Decree-Law stay in force until replaced (Decree-Law 6 of 2025 Art 183(1)).17,18 The tariff does not say whether its bands still bind under those clauses.
- 2027. Cabinet Resolution 174 of 2026 takes effect on 1 January 2027.19 Ask your insurer whether it changes these terms.
What the policy wording says
Document by document
| Document | Claim-free reduction | Certificate of insurance experience |
|---|---|---|
| Insurer wordings and schedules | Conditional7Varies by insurer. See Table 5. | Not yet verified |
| Loss and Damage policy | Not stated in the documents3 | Not stated in the documents3 |
| Motor tariff, Decision 30 of 2016 | Conditional1Art 2(3) says the company "may grant" it. | Explicitly included1Art 2(4). |
| Third Party policy | Not stated in the documents4 | Not stated in the documents4 |
Not stated in the documents does not mean the cover is absent. It means the reviewed document is silent.
Clause by clause
| Question and reading | Status | Source | Effective | Last checked |
|---|---|---|---|---|
| Can an insurer reduce the premium for a claim-free record?1The company "may grant" an individual applicant 10%, 15% or 20% of the minimum premium where the owner did not cause an accident leading to a claim in the previous one, two or three years. | Conditional | Art 2(3)(a) to (c)Motor tariff (CBUAE Rulebook), Insurance Authority Decision 30 of 2016Labelled v2 consolidated 2018-01-01 | 1 Jan 2018 | 4 Nov 2026 |
| Is there a loyalty reduction?110% of the minimum premium at renewal with the same insurer, provided the insurance is not transferred to another person. | Conditional | Art 2(3)(d)Motor tariff (CBUAE Rulebook), Insurance Authority Decision 30 of 2016Labelled v2 consolidated 2018-01-01 | 1 Jan 2018 | 4 Nov 2026 |
| Does the tariff list accident-free records for a larger discount?1In the English text, a 50% discount of the minimum premium "shall be granted" to individual applicants with accident-free records. No period or definition is given. The Arabic has no such verb. Added by Resolution 17 of 2020, until the end of the coronavirus period. Whether it still applies is not stated. | Conditional | Art 2(3)(e), group 6Motor tariff (CBUAE Rulebook), Insurance Authority Decision 30 of 2016Labelled v2 consolidated 2018-01-01 | 21 Apr 2020 | 4 Nov 2026 |
| Must an insurer give proof of insurance experience?1The insurer must immediately provide its customer a free certificate of insurance experience for previous years, electronically or in writing, and is liable for the data in it. | Explicitly included | Art 2(4)Motor tariff (CBUAE Rulebook), Insurance Authority Decision 30 of 2016Labelled v2 consolidated 2018-01-01 | 1 Jan 2018 | 4 Nov 2026 |
Readings are paraphrased unless set as a quotation.
How to read a status
- Explicitly included
- The policy document says this is covered.
- Conditional
- The policy document covers this only under stated conditions.
- Explicitly excluded
- The policy document says this is not covered.
- Not stated in the documents
- The policy documents do not mention this. This does not mean it is not covered.
- Not yet verified
- We do not have a document for this yet.
Sources
19
1CBUAE Rulebook, Insurance Authority Board of Directors' Decision No. (30) of 2016 Concerning issuing Regulation for Motor Vehicle Insurance Tariffs, Labelled version 2, consolidated 2018-01-01. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: Insurance Authority Board of Directors' Decision No. (30) of 2016 Concerning issuing Regulation for Motor Vehicle Insurance Tariffs
2Central Bank of the UAE Rulebook, Insurance Authority Board of Directors' Decision No. (25) of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies, v2 consolidated 2021-01-18. Article 2. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: Insurance Authority Board of Directors' Decision No. (25) of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies
3CBUAE Rulebook, The Unified Motor Vehicle Insurance Policy Against Loss and Damage, under Insurance Authority Decision No. (25) of 2016, v2 consolidated 2021-01-18. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: The Unified Motor Vehicle Insurance Policy Against Loss and Damage, under Insurance Authority Decision No. (25) of 2016
4CBUAE Rulebook, The Unified Motor Vehicle Insurance Policy Against Third Party Liability, under Insurance Authority Decision No. (25) of 2016, v2 consolidated 2021-01-18. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: The Unified Motor Vehicle Insurance Policy Against Third Party Liability, under Insurance Authority Decision No. (25) of 2016
5CBUAE Rulebook, Insurance Authority Board of Directors' Resolution No. (17) of 2020 on the Amendment of Some Provisions of Resolution No. (30) of 2016. Articles 1 and 3. Last checked 4 Nov 2026. Source document: Insurance Authority Board of Directors' Resolution No. (17) of 2020 on the Amendment of Some Provisions of Resolution No. (30) of 2016
6GIG Gulf, Motor Prestige policy handbook, File name 2024_11. Last checked 6 Nov 2026. Source document: Motor Prestige policy handbook
7GIG Gulf, Motor Perfect policy handbook, File name 2024_10. Last checked 6 Nov 2026. Source document: Motor Perfect policy handbook
8Liva Insurance, Motor Insurance Policy Booklet, comprehensive wording, File name dated 29 April 2024. Last checked 6 Nov 2026. Source document: Motor Insurance Policy Booklet, comprehensive wording
9RAK Insurance, Additional Covers for RAK Motor Full Option. Last checked 6 Nov 2026. Source document: Additional Covers for RAK Motor Full Option
10Watania Takaful, published by Dubai Islamic Bank, Motor takaful terms and conditions. Last checked 6 Nov 2026. Source document: Motor takaful terms and conditions
11GIG Gulf, What is a No Claims Discount (NCD) in UAE Car Insurance?. Last checked 6 Nov 2026. Source document: What is a No Claims Discount (NCD) in UAE Car Insurance?
12Central Bank of the UAE, Fundamental concepts of motor vehicle insurance in the UAE, Know your insurance rights. Last checked 6 Nov 2026. Source document: Fundamental concepts of motor vehicle insurance in the UAE, Know your insurance rights
13CBUAE Rulebook, Insurance Authority Decision No. (41) of 2017 amending Decision No. (30) of 2016, Arabic text. Effective 1 Jan 2018. Last checked 4 Nov 2026. Source document: Insurance Authority Decision No. (41) of 2017 amending Decision No. (30) of 2016, Arabic text
14CBUAE Rulebook, Insurance Authority Resolution No. (17) of 2020, Arabic text. Articles 1 and 3. Last checked 4 Nov 2026. Source document: Insurance Authority Resolution No. (17) of 2020, Arabic text
15Central Bank of the UAE, CB Register September of 2026. Last checked 6 Nov 2026. Source document: CB Register September of 2026
16CBUAE Rulebook, Insurance Authority Decision No. (30) of 2016, Arabic page. Last checked 4 Nov 2026. Source document: Insurance Authority Decision No. (30) of 2016, Arabic page
17CBUAE Rulebook, Federal Decree-Law No. (48) of 2023 Regulating Insurance Activities. Article 114. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. (48) of 2023 Regulating Insurance Activities
18CBUAE Rulebook, Federal Decree-Law No. (6) of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business. Article 183. Last checked 4 Nov 2026. Source document: Federal Decree-Law No. (6) of 2025 Regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business
19UAE Legislation portal, Cabinet Resolution 174 of 2026. Effective 1 Jan 2027. Last checked 4 Nov 2026. Source document: Cabinet Resolution 174 of 2026
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- Next review due
- 4 Feb 2027
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- Published