Buying or renewing motor insurance in Oman: A practical checklist for car owners

In 2024, as per Gulf News, 586 people lost their lives, and 1,936 were injured in road accidents across Oman.

These aren't abstract numbers but represent real families facing devastating consequences. Insurance companies in Oman recorded over 37,000 traffic accidents in the first half of 2023, processing 41,000 claims worth RO 11.7 million.

Despite Oman's motor vehicle insurance market being projected to reach USD 0.82 billion by 2024, many car owners approach insurance decisions carelessly.

They renew policies without reading terms, accept quotes without questioning coverage gaps, and discover exclusions only when filing claims, precisely when it's too late.

Your insurance policy isn't merely a legal requirement. It's your financial safety net when a split-second decision or another driver's negligence threatens everything.

In this article, through an extensive checklist, we will help you make decisions grounded in your actual needs, driving patterns, and financial realities.

Table of contents:

• Understanding your car usage and coverage needs
  • You should start by assessing your driving profile
  • You must evaluate your vehicle's financial value
  • Determine your financial capacity
• Choosing the right type of motor insurance for your vehicle
  • Check Vehicle age, value, and replacement cost
  • Optional covers should reflect real risks, not trends
• What to check before comparing motor insurance quotes
  • You need to gather complete information 
  • Understand premium calculation factors
• Reviewing policy details before finalising
  • You must scrutinize each and every policy wording
  • Make sure to verify all information
  • You must understand your rights and obligations
• Conclusion

Understanding your car usage and coverage needs

Before you start comparing premiums, you need to get better clarity on what you're actually insuring and why.

1. You should start by assessing your driving profile

Your insurance needs stem from how, where, and how often you drive:

• Daily commute patterns and urban driving exposure: Do you navigate congested Muscat streets during rush hour? Urban areas saw 445 accidents in Muscat governorate alone in 2024, resulting in 107 deaths. High-traffic zones mean higher risk profiles.
• Annual mileage and distance covered: You must track your odometer over three months, then extrapolate. Vehicles covering 20,000+ kilometers yearly face higher accident probabilities than those logging 5,000 kilometers.
• Geographic exposure and parking conditions: If you frequently travel to remote areas, coverage for emergency towing becomes relevant. If you park on the street rather than in a private garage, theft and vandalism risks increase.

The prevalence of rising accidents in Oman warrants you to realise how motor insurance in Oman can help you secure against such hazards.

2. You must evaluate your vehicle's financial value.

You need to calculate depreciation honestly. New cars drop 15-20% in value annually for the first three years, then depreciation slows to around 10-15% in subsequent years.

This means, a vehicle you’ve purchased for RO 15,000 three years ago holds roughly RO 9,000-10,000 today.

So the million-dollar question here is- Could you absorb the financial hit if your vehicle were totaled tomorrow?

If losing RO 3,000 to RO 5,000 wouldn't significantly impact your finances, third-party coverage paired with an emergency fund might prove more cost-effective than comprehensive insurance over several years.

3. Determine your financial capacity.

How much could you realistically pay immediately for vehicle repairs without disrupting essential expenses? This figure will guide your deductible selection.

Let’s look at the usual repair cost in Oman:

• Minor accidents: RO 200-500
• Moderate accidents: RO 1,000-2,500
• Major accidents: RO 5,000+

So, for you, if an unexpected expense worth RO 250 would create financial hardship, then you shouldn’t opt for higher deductibles to save RO 30 annually on premiums.

Choosing the right type of motor insurance for your vehicle

Once you understand your usage, the next step is aligning coverage structure with your vehicle’s value and lifecycle.

1. Check vehicle age, value, and replacement cost.

Any newer or higher-value vehicle carries a different risk profile than an older car. Repairs today often involve advanced electronics, sensors, and imported parts.

Insurance decisions should account for:

• Repair complexity
• Availability of authorised workshops
• Cost volatility of spare parts

Policies that allow flexibility in repair networks and claims processes can make a tangible difference during ownership.

2. Optional covers should reflect real risks, not trends

Add-ons are often misunderstood as “extras,” when in reality they are risk-specific tools. Examples are:

• Covers that address depreciation on replaced parts
• Assistance services that support breakdowns or towing
• Protections designed for engine damage in specific scenarios

The point here isn’t to select everything but only what aligns with how and where you drive.

What to check before comparing motor insurance quotes

Here’s what you need to check before starting to compare:

1. You need to gather complete information

The vehicle documentation you need is:

• Registration card (make, model, year, chassis number, plate number)
• Current insurance policy and certificate
• Current odometer reading
• Market value estimate from 2-3 dealers

Driver details affecting premiums:

• Civil ID for all drivers
• License details (date of issue, restrictions)
• Claims history for the past 3-5 years
• Traffic violations or accidents in the past 3 years

2. Understand premium calculation factors.

The vehicle-specific factors you need to consider are:

• Make and model as luxury vehicles generally cost more to insure
• Age, with newer cars that have safety features, often results in receiving better rates.
• Engine capacity, since larger engines are associated with higher speeds
• Security systems, where factory-installed immobilizers may qualify for discounts.
• Storage location, as garaged vehicles face a lower risk of theft.

Whereas the driver-related factors will be:

• Age and experience, with drivers under 25 typically paying higher premiums
• Claims history, where even one claim in three years can increase premiums by 20–30%
• Driving record, as traffic violations substantially raise rates
• Location, with urban areas usually costing more than rural locations

Also, what about no-claim bonuses?

So, if you've maintained insurance without filing claims, you've accumulated discounts ranging from 10 to 50% depending on claim-free years. This bonus transfers between insurers, ensuring any new policy honors it.

When reviewing how different coverage elements come together within a single policy, it helps to look at how they are structured in practice.

Liva Insurance offers motor insurance where they bring core protection, optional covers, and claims support under one framework designed for everyday driving conditions in Oman.

Reviewing policy details before finalising

Here are the policy details you need to review before finalising:

1. You must scrutinize each and every policy wording

The policy wording document states what's actually covered. Focus on:

• Definitions: "Accident" and "market value" have specific meanings
• Scope of cover: Precise circumstances that trigger coverage
• Exclusions: What won't be covered
• Claims procedure: Reporting timeframes (often 24-48 hours) and required documentation

2. Make sure to verify all information.

• Personal information accuracy (names, Civil IDs, contact details)
• Vehicle details precision (registration number, chassis/engine numbers, modifications)
• Coverage specifications (type, sum insured, deductible amounts, add-ons)
• Authorized drivers are correctly listed

3. You must understand your rights and obligations

Here are the obligations you have:

• Maintaining the vehicle in a roadworthy condition
• Renewing registration and passing inspections
• Promptly reporting accidents, regardless of severity
• Notifying the insurer of modifications or usage changes

And, your rights are:

• Fair claim assessment based on policy terms
• Choose authorized repair facilities within the insurer's network
• Appeal denied claims through grievance procedures
• Transfer no-claim bonus when switching insurers

If you plan to sell the vehicle, you should first know how to transfer your Liva motor insurance policy online. Some insurers make transferring coverage simple; others create obstacles.

Understand whether renewal is automatic or requires action, and when you'll receive notification.

Conclusion

Motor insurance protects more than your vehicle. It safeguards your financial security. The right policy reflects your specific needs, not generic assumptions about what you should buy.

We believe that informed decisions come from thorough evaluation, honest self-assessment, and refusing to treat insurance as a transaction to minimise.

Liva Insurance has served the GCC region for over 80 years, offering coverage that matches your actual driving patterns and budget.

If you’re ready to move from evaluation to action, we can help you with your customized moto insurance journey.

Get your personalised motor insurance quote from our insurance experts that fits your specific needs and budget.