A Guideline for Car Insurance in the UAE
Written by Wasim
Car insurance is a way to mitigate risks. When you buy a vehicle, you want to prepare for any damages incurred in the future. Insurance is protection against the risk of motor accidents, theft, scrapes, and any third-party liability you can incur while on the road.
An insurance with the agency repairs makes sure to get your car repaired at the manufacturer’s official agency/dealer.
No! Holding two policies even on different vehicles is not possible in the UAE.
Yes! In fact this is a must if you want to drive a car in the UAE.
Buyers will have to pay 1.25%-3% of their car’s original value as insurance in the UAE.
Yes. According to RTA law, car insurance is mandatory in the UAE.
You will have to pay 1.25%-3% of your car’s original value as comprehensive car insurance in the UAE.
The four types of car insurance are: Comprehensive InsuranceThird-party fire and theft InsuranceThird-party property damage InsuranceCompulsory third-party Insurance
Things to Consider while Buying Car Insurance in the UAE
Invest Now to Secure Your Future
It is advisable to save for rainy days when the going
is good. Paying premiums regularly is a way of saving for an unpredictable
future. Investing in car insurance reduces your expenses in the long term,
because it is preferable to have a nest egg that you can withdraw from then
come up with any repair and damages expenses on the fly. Insurance safeguards
your investment and lets you focus on your everyday life with peace of mind.
Risk Management
The automobile accident rate in the UAE has reduced over the past five years but it still averages a collision per day. That’s an enormous number considering most accidents are caused by youths on their mobile phones. To shore up for such disasters it is wise to have a car insurance policy that meets your needs in case you ever need it. Precaution is always better than a cure.
What Can Your Car Insurance in the UAE Do for You?
Though vehicular insurance has expanded and boomed in
the UAE in the past few years there are only two policy methods available for
buyers to choose from.
Third-Party Liability Car Insurance
The cheaper option of the two, Third-Party Liability is mandatory in the UAE. It covers any damages incurred by third-party due but does not cover damages of the policy holder. Buyers opting for the Third-Party Liability policy must keep in mind the expense they risk to sustain in the case of any vehicular damage because the insurance company will not be liable to pay for it.
Comprehensive Car Insurance
As the name suggests it not only protects the policy
holder from third-party liability but any damages to their own vehicle as well.
It is a costly option but it covers against any and all unforeseen hazards in
the future even roadside assistance and agency repair.
How Your Car Insurance Premium is Calculated in the UAE?
Not all Comprehensive car insurance in the UAE policies are identical. Individual cases and their unique factors decide what premium will be charged. The following is a brief breakdown of how a premium is calculated.
- Brand new vehicle with high safety features – Lower Premium
- An expensive car – Higher Premium
- Drivers under 30 – Higher Premium
- Drivers with little driving experience – Higher Premium
- GCC Coverage – Higher Premium
- Breakdown Coverage – Higher Premium
- Off-Road Coverage – Higher Premium
The more features you opt for the higher your premium will go. The rates differ from insurance company to insurance company so it is always good to compare quotes before making a final decision.
Compulsory Excess
When buying car insurance make sure that the premium does not exceed compulsory excess. Excess amount is determined by the model and value of the vehicle and charged accordingly. Compulsory excess guarantees that you don’t pay an unnecessarily higher premium.
Documentation for Process of the Car Insurance in the UAE
The process is very simple and the documentation required are not very complicated. All you need are the following to start the car insurance process.
- Passport copy
- Copy of the residency visa
- Driving license copy
- Copy of car’s registration card
- Copy of the proforma invoice in case your vehicle is new
Once the documents have been submitted the process can start.
Extra Features to be Aware Of Car Insurance in the UAE
When considering a Comprehensive Car Insurance its
best to take all the features into consideration. Each feature will cost extra
but it will safeguard that those aspects are also covered under one policy and
you don’t have to take care of them separately.
Off-Road Travel
Dessert safaris are a major tourist attraction of the
UAE so it makes sense to get coverage for any minor denting, or off-road damage
that can occur while you surf the sands in your vehicle. It makes for a magical
trip when you don’t have to worry about car repair.
Agency Repair
Under Comprehensive Coverage you can benefit from agency repair for five years from the date of manufacture but this policy differs from agency to agency. When choosing your policy make sure that it covers agency repair. You’ll have to pay slightly more for this service but it is better to have the manufacturer repair the vehicle than a random garage.
Emergency Services
The car insurance in the UAE isn’t only useful for accidents and collisions. Your car breaking down in the middle of the road, or a flat tire when you least expected it is also a risk that your car insurance can cover if you opt for the emergency services feature in your policy. Confirm that the company will provide 24/7 roadside emergency assistance because only a few provide this service.
Does the ‘No Claims’ Certificate Apply to You?
In case you’re already a policy holder but are in the
market for better options, don’t forget to check if the ‘No Claims’ bonus
applies to you.
The No Claims Bonus is applicable if you’ve held a
policy but never made a claim for damages or repairs. This gives you a discount
at the new company, and a deduction in the premium depending on the amount of
claim-free years, and the company policy.
NCB is also beneficial if you wish to remain with your
current insurance company and you renew your policy. The company rewards
claim-free policy holders by giving a discount on premiums.
Both Comprehensive Coverage and Third-Party Liability policy holders are applicable for NCB. It is best to compare NCB policies and the discounted rates of different companies before making a choice because it can help shave off a substantial amount on the premium.
Exclusionary Factors for Car Insurance in the UAE
Under certain circumstances policies can be denied or
revoked in the UAE. Some of the following factors contribute to insurance
companies dismissing the application from the outset, or terminating the policy
after the fact.
- Driving Without a Valid License
- Driving Under the Influence
- Overloading
- Providing Misleading or False Information
- Intentional Damage
- Unethical Use of Insured Car
- Any Claims Filed 3 Years After the Fact
How to Select the Best Policy for You?
When shopping for a car insurance in the UAE policy make sure that it covers your needs. Each policy will be trimmed to satisfy what you want from it. Certain things to keep in mind:
Understand What You Want
When you know exactly what you want from your policy
it becomes easier to narrow companies down. When your insurance provider has a
clear idea of your needs it is much easier for them to guide you towards the
policy that will fit you best.
How Reliable is the Insurance Company?
It is imperative to research company backgrounds,
their financial health, and their claim ratio before making any decisions. An
insurance company’s reputation can help you understand how quickly and
earnestly they treat claims. Informed decisions are always better.
Compare Plans and Prices
The internet has made it very easy to compare plans and prices and not settle for the first one that is offered to you. Many websites, such as Buy Any Insurance, specialize in car insurance and bring you reliable data, the best prices within seconds. It is very easy to hop onto a website like Buy Any Insurance and do all your research on car insurance policies and quotes without having to leave the comfort of your home.
Compare on Buy Any Insurance
Buy Any Insurance is your one stop to choose and
compare between different car insurance providers and all at the press of a
button. It is safe and reliable, and it is fast.
Reliable
Buy Any Insurance’s team is working always working at
the backend while you peruse quotes and are there to assist at any time. All
your personal data is safe and secure and it is against Buy Any Insurance
privacy policy to share it with anyone.
Best Price Guarantee
You can be sure to get the best price on the market at Buy Any Insurance. No service fees are charged and you can tailor your searches by the features you want, making it easier to compare the exact policy you need.
Fast
You can compare and buy policies on the same platform. Buy Any Insurance makes getting car insurance ridiculously easy. Once you’ve compared the quotes and chosen the one that best suits your needs, you can send in your documents and Buy Any Insurance will issue the car insurance policy within 60 minutes. No more waiting for days. You can have your car insurance policy within the hour.
Satisfied buyers swear by Buy Any Insurance and its reliable and fast service. So if you’re in the market, hop on to BuyAnyInsurance and start comparing!
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Originally published Sep 14, 2020 14:49:00 PM, updated Jun 06, 2024
