makes a lot of financial sense. But what does insurance mean, really? Insurance is a contract through which an insurance company guarantees an agreed on compensation in case of specified damage to the insured vehicle, in addition, to repair, injury, or third-party liability in exchange for a monthly premium. In short, it is a way to provide protection to you and those on the road with you while you drive.
Decoding Car Insurance in the UAE
Car insurance is mandatory by law in the UAE. Whether it’s a fleet of transport trucks, rental cars, or for personal use, all vehicles must be insured before they are allowed on the road. Not only does this reduces the risk you take when on the road, but it also helps resolve conflict from accidents in a timely and civilized fashion. Car insurance is easily available in the UAE, with many providers offering varying policies to fit your needs.
Benefits of Car Insurance
• Safeguard against loss of or damage to your car
• Liability coverage for third-party claims of damages, injury, or death
• Insurance for third-party property damage
• Precaution against financial liability
Types of Car Insurance in the UAE
There are two
policies available in the UAE – Comprehensive which mostly covers all aspects
of car insurance; and Third-Party Liability which only covers damage sustained
by others due to your negligence.
Best Car Insurance Plans
Car insurance companies in the UAE only provide two policies.
insures against damages and injuries caused to a third-party in an accident that was your fault. It does not cover for any damages that you or your vehicle sustained. Third-Party Cover is preferable for those who have an excellent driving history with no claims in the past.
As the name suggests Comprehensive Coverage provides for damages to third-parties as well as you in case of a damage claim. Comparatively, it covers most aspects of insurance but you can opt or additional features for a more robust coverage. Of course, this will increase your premium but will provide better protection.
What Does Your Car Insurance Cover?
The following are services that you’ll mostly find included within Comprehensive Car Insurance plans.
On-Site Assistance – In case your vehicle breaks down or is damaged the car insurance provider will reimburse you the cost of repair.
Assistance with Towing – Cars that need to be towed to a workshop will be provided with the service.
Crane Assistance – In case your damaged vehicle needs to be extracted and removed from the site of a collision.
Flat Tyre Assistance – In case of a flat tyre, you will be assisted without any cost.
Dead Battery – If your battery dies in the middle of the road and you need to jump-start your engine, assistance will be provided to you.
Lost or Locked Keys – In case you lose keys, or your keys are locked up in the car roadside assistance will be provided to you.
– Imagine running out of gas in the middle of nowhere. Insurance policies
come to help you out in this situation.
Additional features are not usually included in traditional policies. You can pick and choose which to add on for an additional cost to your premium.
• Personal Accident Cover – This additional cover is great for you if you opt for Third-Party Liability Insurance. This way you provide protection for any personal damage for yourself and your passengers.
• Personal Belongings Coverage – In case of theft of your vehicle you will be compensated for your car and for any personal belongings that might have been inside at the time of theft.
• Agency Repairs – You can choose for your car to repaired by the original manufacturer.
• Off-Road Insurance – If you entertain guests to desert safari, then it makes sense to get coverage for any damages you might incur there.
• 24/7 Roadside Assistance – Another great additional feature is 24/7 roadside assistance in case you break down and need immediate help.
• Natural Calamity Cover – You can get coverage for damages which are out of your control with Natural Calamity Coverage.
• Medical Emergency Expenses Cover – In case of emergency medical expnses your insurance can cover up to AED3,500 in medical costs.
• Car Hire/Cash Cover – When your car is in for repairs you can get reimbursed for hiring a car during that time or get cash cover upfront.
• Windscreen Damage Cover – Replacing the windscreen can be expensive and isn’t always included in your policy.
• GCC/Oman Cover – If you travel between neighbouring countries of the UAE often then this extra feature is for you.
(NCB) is a discount given by the insurance company when you’ve made no claims in the duration of holding your policy. NCB is a discount on your premium.
Moreover, you don’t have to stick with your current insurance company to reap this benefit. If you choose to opt for another company, and another policy, your previous insurance company will provide you with the NCB certificate which you can present to your new company for the same benefits.
Equally important is to remember that NCB is applicable in both Third-Party Liability an Comprehensive Coverage policies. The amount of discount you can expect as an NCB holder depends on the company you choose.
Car Insurance Exclusions
You can risk losing insurance cover in certain circumstances. A few incidents that can nullify any claims, or terminate your car insurance, have been listed below:
• Driving without a license
• Driving under the influence
• Overloading the vehicle beyond specified capacity
• Withholding or intentionally providing misleading information
• Intentionally damaging the car by initiating an accident
• Using the vehicle for any purpose other than that mentioned expressly in the insurance policy
• Filling a claim three years after the fact
Why Compare Car Insurance in the UAE
The UAE market is full of car insurance companies. How do you choose the best for you? When you’re in the market for an expensive commodity you don’t immediately buy the first thing on display. You compare products, weigh the pros, and cons, and finally choose the one that best suits your needs.
Similarly, car insurance comparison helps you understand the market and what’s on display. By comparing policies and additional features you can get a better idea of the best policies on offer, as well as a company’s claim ratio before you make any agreements.
Furthermore, buying car insurance
is expensive but not all high premiums ensure high quality. Comparing car insurance online allows you to get more bang for your buck. It is also a long-term investment so be mindful of it when comparing car insurance.
Car Insurance Calculator
A car insurance calculator computes what premium you can expect to pay. Since each buyer will have their own set of needs and features the car insurance calculator makes it easy to calculate their premium.
Consequently, these calculations help you compare car insurance premiums, ultimately leading you to save money and choosing the best plan for you.
Significance of Car Insurance in the UAE
In the past two decades, the UAE has transformed into the economic hub of the Middle East. A population boom in cities like Dubai, Abu Dhabi, and Sharjah, has also seen steady growth in the vehicular purchase, and there are more cars on the street now than there were five years ago.
Therefore to regulate this increase in traffic car insurance has become a significant protective measure for the UAE. Though the risk of collisions and road accidents is always there, the UAE has seen a decline in traffic accidents in the past two years.
Furthermore, owners that don’t get their vehicles insured are penalized. Car insurance makes sure that those on the road are covered for any mishaps that might occur.
Select the Best Car Insurance Plan in the UAE
With a market full of car insurance companies, how do you separate the wheat from the chaff? We’ve got some tips for you to select the best car insurance plan
in the UAE for you. It’s as simple as ABC if you keep these steps in mind.
What do you want? – Before you step into the market you need to know what you want. It is easier to skim through policies, and ads, if you know exactly what you’re looking for. Incidentally, when you know what you want it’s hard to be distracted or duped.
Is The Insurance Company Reliable? – A companies market reputation and customer reviews are a good source of finding out how they treat their clients. Some companies have better records of processing timely claims where other’s don’t.
Compare Policies and Quotes
– Not all policies are made equal and what might have worked for your friend, might not work for you. It’s a rumor that higher premiums ensure higher quality. Comparing policies
and prices is imperative to find the one that fits your budget and your needs.
Are You Getting Proper Coverage? – An insurance policy is useless if it does not provide the proper coverage. Make sure that your policy covers all that you need before signing the deal.
How Can You Get Economical Car Insurance?
How economical your premium is will be dependent on a lot of factors. Firstly, which plan you choose (Comprehensive Coverage, or Third-Party Liability) will determine how much coverage and eventually premium you can expect. Some other factors are:
The Car Itself – A luxury car bought fresh off the conveyor belt will charge a higher premium as compared to a second-hand less expensive model. This is because new, and luxury models are more expensive to replace and repair.
Claims Records, and Driving History – A clear claims record, and excellent driving history is great to bring down a premium. But if your claim history has been patchy, and your driving history is littered with fines, and complaints then your premium will increase.
No-Claims Bonus – If you’ve managed to make no-claims in the time you’ve held a car insurance policy then you automatically get a No-Claims Bonus discount on your premium. Depending on the insurance company the discount can go up to 20%.
Documents Needed to Buy or Renew Car Insurance
Getting car insurance is not very complicated. The process is simple after you’ve compared and chosen the policy you like. The documents required are as follows:
• Driving license of the policyholder as well as of those who will be driving the insured car
• Mulkiya or Vehicle Registration Certificate of the car.
• Emirates ID for citizens
• Photocopies of passport and residential visa for non-citizens
Some insurance companies might require more documents as they see fit but in most cases, these are the basic documents that you need to submit.
Best Car Insurance Companies in the UAE
Dubai has a number of great car insurance companies
that provide some of the best policies and customer service. The following have distinguished themselves in this field:
• Union Insurance
• Dubai Insurance
• Dar Al Takaful
• Aman Insurance
• Watania Insurance
• Al Wathba National Insurance
• Al Buhaira Insurance
• Dubai National Insurance
• Insurance House
• Methaq Insurance
• Salama Insurance
• Adamjee Insurance
How to Claim Car Insurance in the UAE
Claiming car insurance can be a little complicated. If the claim isn’t filed correctly it can lead to compensation being delayed or outright rejected. The following is the correct way to file a claim:
Immediately inform the Insurance Provider
If you’ve had an accident or a collision, immediately inform the insurance provider. Take pictures of the damage, and the scene of the accident to bolster your claim. The sooner you have the insurance provider on board the sooner you can get your compensation.
Cooperate and Provide Information
Information is key. Give the insurance provider all the information they’ll need to start the claim. This will include your full name, the policy number, on which date the policy began, date and time of the accident, accident location, name, vehicle number, and licence number of the other party involved in the accident. This information is needed to file a claim, and the more you have the more likely you will be to get a claim.
File an FIR with the Police
In case of accidents or theft, you should file a police case and get a photocopy for your insurance provider. Some companies ask for a copy of the First Incident Report when making a claim.
Get your Vehicle Supervised
Once you’ve informed your insurance company they will send a supervisor to assess your car. You should allow this to happen. Supervisors are there to make sure that the information you gave on your claim is true or not. Their assessment will make it easier for your claim to go through.
Once the supervisor has filed his assessment the insurance company
will process your claim as quickly as possible. They will take a look at your unique policy and see which terms and conditions apply. If you’ve opted for cashless compensation then the expenses will be directly paid to the network garage where repairs were done.