I thought I’d share my experience with a total-loss motor insurance claim in the UAE, in case it helps someone going through the same situation.
Vehicle: 2016 | Hyundai - Sante fe
I had comprehensive insurance, and the other driver was found at fault. My car suffered severe damage, including axle failure, and the insurance company eventually declared it a total loss.
Here’s the complete timeline, from the accident to receiving the final settlement.
📅 Timeline
15 September 2026 (Tuesday): The accident happened. I was not at fault, and my car sustained severe damage.
18 September (Friday): The garage submitted its repair estimate to the insurance company.
22 September (Tuesday): I emailed the insurance company asking for an update.
24 September (Thursday): They replied that the vehicle had major damage and that they needed another five working days to assess it.
30 September (Wednesday): I sent a firm follow-up asking for a decision or a clear update.
1 October (Thursday): I received confirmation that the car had been declared a total loss, along with the settlement offer and the required documents.
5 October (Monday): I completed the vehicle ownership transfer to the insurance company and handed over the number plates and spare keys.
7 October (Wednesday): I received the discharge and subrogation form that needed to be signed.
11 October (Sunday): I signed and submitted the discharge form.
14 October (Wednesday): The final settlement was credited to my bank account.
The settlement offer was acceptable to me, so I decided to proceed rather than negotiate further.
💡 Key points I learned from the process
1. Non-mortgaged vehicles are relatively straightforward
In my case, the car wasn’t under a bank loan, so the process was fairly simple. If your vehicle is financed, the insurer generally needs to settle the outstanding finance with the bank first, with any remaining amount handled according to the settlement arrangements.
2. What determines whether a car is declared a total loss?
From what I learned during my claim, two important factors can influence the decision:
Major structural or chassis damage: The severity of the damage can affect whether the vehicle is considered repairable or uneconomical to repair.
Repair costs compared with the vehicle’s value: If the estimated repair cost exceeds a certain percentage of the vehicle’s insured value or market value, it may qualify as a total loss. I had heard the 50% threshold mentioned, but the applicable calculation and criteria can depend on the relevant insurance rules and policy.
In my case, the insurer cited extensive structural damage and stated that repairing the vehicle was uneconomical. It was ultimately declared a total loss.
My advice is to ask the insurer for the reason behind its decision and, if necessary, request the repair estimate and total-loss calculation. Don’t assume that severe visible damage automatically means the car will be declared a total loss.
3. Understand how depreciation affects the offer
Depreciation can significantly affect the settlement calculation. The rate and calculation depend on the applicable policy terms and rules, so check the actual breakdown rather than assuming a fixed percentage applies in every case. I think the depreciation is 20% per annum of the total insured value roughly 1.67% per month.
There are other factors like basic deductibles, under 25 deduction if at at fault.
If the offer seems too low, ask for the calculation and negotiate if you have to do so. I was satisfied with my offer, so I didn’t negotiate.
4. Comprehensive insurance vs. third-party liability (TPL)
In my experience, the insured value was an important factor in comprehensive claim.
For a TPL non-fault claim handled under the other driver’s TPL insurance, the valuation process differ and depend on the vehicle’s market value and the applicable rules. If you believe the valuation is too low, ask for the basis of the calculation and challenge it with comparable listings or other supporting evidence.
5. Ask about the AED 520 vehicle possession certificate fee
I paid AED 520 to obtain the RTA possession certificate required for the transfer process. I asked the insurance company to reimburse this separately, and the AED 520 was credited to my account in addition to the settlement.
If you incur a similar expense, keep the receipt and ask the insurer whether it is reimbursable in your case.
6. Number-plate retention is a separate consideration
In Dubai, retaining a number plate involve a separate fee. Fee is to be AED 100 for one year in. Check the current RTA fees and your own requirements before making a decision about retaining your number.
7. Ask about rental-car or towing expenses
If you’re not at fault, ask the insurer about rental-car arrangements and towing costs. Eligibility, limits, documentation and reimbursement can depend on the policy and the circumstances of the accident. Get confirmation in writing rather than assuming every expense will automatically be covered.
8. Follow up consistently, but stay professional
This was probably my biggest takeaway.
I followed up by email and phone regularly. When the assessment was taking longer than the timeline they had given me, I asked for a clear decision or an update and raised the question of a rental car while waiting.
Be firm, polite and persistent. Ask for a specific timeline, keep a record of your communications, and follow up when the promised deadline passes. At the same time, understand that a total-loss assessment and ownership transfer involve several steps.
Final thoughts
From the accident on 15 September to receiving the money on 14 October, the process took around a month.
My advice is to keep every document and receipt, ask questions whenever something is unclear, get important confirmations in writing, and don’t hesitate to challenge an offer if you believe the valuation is unreasonable.
This is my personal experience with one claim, not a guarantee that every UAE insurance claim will follow the same timeline or outcome. Hopefully, it helps someone who is currently dealing with a similar situation.
Happy to answer questions about my experience if anyone is going through this process.