Exploring Common Queries about Motor Insurance in the UAE

Motor Insurance in the UAE

New to the UAE? We understand how daunting it must be to move to another country and start afresh. It would help if you found a place to stay, furniture to live comfortably, and a car to get around. But before you take your car out for a drive, make sure your car is insured. Motor insurance  in the UAE is a little different from what you’re used to worldwide. Yet it’s not that difficult to understand once you get the hang of the semantics; it’s as easy as ABC.

To make the transition as smooth as possible for you we’ve taken the most frequently asked questions we face in our day to day from new customers and complied a list of answers that can clear any doubts you might have about motor insurance in the UAE.

What is the difference between Third-Party Insurance and Comprehensive Coverage?

Third-Party Insurance – It basically covers any damage to a third party that happened due to your negligence on the road. It does not provide any compensation for damages you might incur.

Comprehensive Coverage – It protects not only third parties but also your interests in a claim, providing for damages, medical bills, and maintenance etc. It is the more expensive of the two as premium costs are higher.

Why should I go for Comprehensive Coverage when the law only mandates Third-Party Coverage?

The law dictates the basic minimum every car owner should have regarding motor insurance in the UAE. But Third-Party Liability doesn’t cover any damages you might accrue while driving your car. You could go with what’s mandated by law, but you could also hedge your bets and protect yourself while you’re at it.

Are there any eligibility criteria when applying for car insurance?

Yes! There are certain requirements that need to be fulfilled for you to get car insurance:

1. Is a citizen/resident of the UAE
2. Between the ages of 25-65
3. Holds a valid driving license for over a year especially if moving from another country

What factors decide car insurance premiums?

No one policy is the same. In the UAE motor insurance premiums are decided by many factors. Some of them are:

1. How many drivers will be using the insured vehicle
2. The drivers’ age and experience
3. The drivers’ location
4. Type of vehicle (luxury cars will be set at a higher premium)
5. Vehicle’s market value (latest models will charge a higher premium)
6. Any claims history (the more claims the higher the premium)

How can I claim insurance?

While you’ll find a lot of motor insurance in the UAE, finding ways to claim insurance is a little bit harder. Your insurance provider will give you a run-through but let’s be honest; we need a Wiki-How page when it comes to push and shove. Here’s a brief but accurate breakdown of how you claim motor insurance in the UAE.

1. Immediately inform the police and get an incident report made. This incident report is crucial when you apply for insurance.
2. Get the relevant information of the other party in the collision (license plate number, driving license, their insurance policy etc.)
3. Take photographic evidence of the incident and the damage to your vehicle.
4. Take eyewitness accounts of those around. Document them on video and take their contact information.
5. Inform your insurance company as soon as possible of the incident and get the paperwork started.
6. Save and submit all documents that relate to the incident (police report, witness accounts, medical bills, repair bills etc.)

Can anything cancel my insurance claim?

Yes! There are many things that not only cancel your claim on motor insurance in the UAE but completely terminate your insurance. These are serious mistakes that should be avoided at all costs.

1. Lying on your car insurance documents is a big factor that can completely cancel out your insurance. You should be truthful and as factual on your documents as possible unless you want to be convicted for insurance fraud.
2. Making car modifications after the car insurance period has started and not informing the insurance provider. You’re basically changing the specifications documented in the insurance policy. The insurance provider can easily refuse any claims by stating the car in question doesn’t match the description of that in the forms.
3. If you disregard traffic laws and are reckless in general on the road your accumulation of fines and warnings will give the insurance provider enough reason to deny your claims.
4. Dismissing car maintenance or not keeping up with its repairs is a recipe for disaster. A car that is compromised before it even hits the road is not going to win any claims.
5. Loaning your car out to a driver who is not on the list of drivers on the insurance policy, or using it for a purpose not outlined in the insurance policy will negate any claims you make on it in the future.

Motor insurance in the UAE is not rocket science, but it can be confusing. We hope this helped clarify some of your questions and will help you decide which will protect you and your loved ones while on the road.

FAQ’s

How much bike insurance cost in Dubai ?

There is no fix amount for bike insurance in Dubai. However the premium insurance is based upon a number of factors including insurance coverage, brand of your bike, bike model, registration year and so on. 

What is the new motor insurance law in UAE?

A new nationwide law states that all the policyholders must pay the full amount for a replacement car to the car owners within 10 days after the accident. 

How much motorcycle license in Dubai?

You would have to pay somewhere between AED 4000 to AED 5000 for a motorcycle license in Dubai. 

What is motor insurance UAE?

Car insurance is mandatory and we offer two types: comprehensive and third-party insurance: Comprehensive Insurance: provides comprehensive cover against your own damages as well as third party liability. Third party liability Insurance: provides cover against third party liability in case of accidents.

What is the cost of automobile insurance in the UAE?

For cars that cost more than AED 300,000, the average insurance premium quote in Dubai is 2.75%. For cars that cost between 100,000 AED and 300,000 AED, the average rate is 3% while for the cars that cost less than 100,000, the average premium cost is 3.25% of the car value

Is it mandatory to have motor insurance?

Yes, it’s a legal requirement to have an insurance policy in place if you own any road worthy vehicle. It provides financial protection if you have an accident, and it can also cover injuries to other drivers, pedestrians and passengers in your car.

Related Article:

Comprehensive car insurance – what is it?

Benefits of Third-Party Car Insurance in the UAE

Tips To Get Cheaper Car Insurance For Young Drivers

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