Do You Need Car Insurance If Your Car Is Off the Road in the UAE?

Many car owners in the UAE have vehicles that are parked for long periods, unused, under repair, or kept as a secondary car. This often leads to a common question:

If a car is off the road and not being used, does the owner still need to insure it?

The answer depends on one key factor: whether the car is still registered.

Understanding Car Insurance Rules in the UAE

In the UAE, car insurance is closely linked to vehicle registration. Authorities such as the RTA require valid insurance for any vehicle that is legally registered and allowed on the road.

Let’s break this down clearly.

Scenario 1: The Car Is Registered but Not in Use

If your car:

• Has active number plates

• Has valid registration (Mulkiya)

• Is parked at home, in a garage, or unused for months

👉 Insurance is still mandatory by law.

Even if the car is never driven, UAE regulations require all registered vehicles to have at least third-party motor insurance. This rule exists because registered vehicles are legally considered roadworthy, regardless of how often they are used.

What Happens If You Don’t Insure a Registered Car?

• Registration renewal will be blocked

• Fines may apply if caught uninsured

• You could face issues if the car is damaged, stolen, or causes accidental damage

Scenario 2: The Car Is Deregistered, or Registration Has Expired

If your car:

• Has expired registration

• Is officially deregistered

• Has number plates surrendered or inactive

👉 Insurance is not legally required.

However, there are important limitations:

• The car cannot be driven at all

• It cannot be parked on public roads

• To use it again, you will need new insurance and registration

This option is often chosen by owners who plan to store their vehicle long-term.

Hidden Risks of Not Insuring an Unused Car

Even when a car is off the road, risks don’t disappear. Common non-driving risks include:

• Fire damage

• Flooding (especially during heavy rain)

• Theft or vandalism

• Accidental damage in parking areas

Without insurance, the owner bears the full financial loss.

Insurance Options for Cars That Are Not Used Often

If you want to stay compliant while keeping costs low, consider these options:

1. Third-Party Insurance

• Lowest-cost legal option

• Covers damage caused to others

• Suitable for parked or rarely used cars

2. Comprehensive Insurance (Limited Use)

• Covers fire, theft, and natural disasters

• Higher cost, but broader protection

• Useful for valuable or long-term stored vehicles

Note: There is no official “parking-only” insurance in the UAE, but third-party policies are often the most economical choice.

Simple Rule to Remember

• ✅ Registered car = Insurance required

• ❌ Deregistered car = Insurance not required (but cannot be driven)

Final Thoughts

If your car is off the road but still registered, insurance is not optional in the UAE — it’s a legal requirement. If you’re planning long-term storage, deregistering the vehicle may save costs, but it comes with usage restrictions.

Before making a decision, it’s always smart to compare insurance options and choose the most cost-effective policy that keeps you protected and compliant.

Want to compare affordable car insurance options in minutes?
Visit InsurancePolicy.ae to find the right coverage for your needs.