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Guidelines On Car Insurance Coverages Available In UAE

Written by Wasim

Guidelines On Car Insurance Coverages Available In UAE

Car Insurance is a type of coverage at the UAE enforced by law. It is essential by law that every car on the road is insured. Car Insurance coverage typically covers your vehicle from accidents, fire, blasts, thefts, and destruction. As well as it offers third-party coverage in case of death or injury to a third party or damage to her car or property.

What are the 2 Types of Car Insurances in Dubai?

The first step after buying a car in Dubai is the registration and insurance of your vehicle. Without insurance, you cannot drive a car in Dubai as well as the other Arab Emirates. It is essential to get the best suitable coverage for your vehicle; you must know the five different types of insurance policies in the UAE.

1.  Third-Party Liability Insurance

Third-Party Liability Insurance is the primary and frequently less costly coverage that is mandatory under UAE law. It does not cover the car owner’s damage, including car damage but, covers the bodily injury or property damage of the third party by the insured vehicle. The policy also does not cover loss by fire or car theft.

2.  Comprehensive Policy

Comprehensive Policy is a Policy with Add-ons in which you can add, add-ons into your basic full policy by paying more premiums. These add-ons include:

Add-Ons in comprehensive Car Insurance

Add-Ons in comprehensive Car Insurance at an additional cost of your premium include:

  1. Theft (regarding spare parts and malicious acts)
  2. Fire (accidental fire, natural disaster)
  3. Death or Bodily injury (to person or property involved in third-party accidents)
  4. Medical costs of injuries to the driver and passengers of the insured car under Personal Injury Protection (PIP) cover.
  5. Oman coverage offers protection only to damage to your vehicle when you enter Oman.
  6. Roadside assistance offers include mechanical repairs, vehicle towing, battery boost, flat tires, lockout, and emergency fuel delivery.
  7. Off-road, the cover provides coverage to insure your car on unmarked roads. It depends on the limitations. Check out the restrictions on how far the policy will cover you in the desert.
  8. Agency repairs include mechanical repairs from an authorized dealer’s workshop, which is different from “garage repair.”
  9. Zero depreciation covers the entire cost of the car without accounting for the vehicle’s depreciation if the car is brand new (only valid for new vehicles up until six months from the purchase date).
  10. In case of loss of personal items, the insurance covers the damage to own property belonging that is carried in the insured vehicle. In case of an accident, fire, theft, or attempted theft that should be evidenced through the police report.

Further Things To Consider

First of all, you have to decide on the type of policy that you are going to buy; Secondly, work out for the premium you will have to pay for.

To evaluate the pros and cons of an exclusive Insurance cover over a Third-Party policy, you have a stint on the add-ons in your system and then decided. At last, the part comes where you figure out the Premium; you must pay the Insurance company for a necessary damage cover under the insurance coverage.

In the section of the UAE car insurance guide, we need to know the answers of the following quarries on factors you must ponder while scheming your yearly premium and how to get yourself a good agreement or deal finally.

What is the validity of my insurance policy?

In the UAE 12-month period (one-year policy) offers a 13-month coverage instead of a one regular year. The extra one month is a penalty-free grace period provided by the RTA (The Roads and Transport Authority) to re-register your car.

How to calculate Car Insurance Premium?

The fee paid to the insurance agency to keep the car insured for a specific period is called a premium. The amount you pay is based on numerous factors, like the cost of your vehicle, the model and the maker (brand) of the vehicle, how old is your car, your age, and previous driving experience. For example, a driver who has less experience will have to pay a higher insurance premium and vice versa.

How can I lower my premium?

Here are many guidelines that you need to follow to ensure that your insurance premium is economical.

a. Get a ‘No Claim’ certificate:

The ‘No claim’ certificate proves certification that your car was accident-free in the previous year. No claim certificate can give you a discount on the premium of your policy renewal.

b. Pay Deductible (a higher Excess fee):

The Deductible is the sum you settle to pay on occasion of an accident caused by you. The more you agree to pay, the lower your insurance premium or vice versa.

c. Choose the most critical policy adjuncts:

Whenever you need to buy a policy, always choose the most vital policy adjuncts (add-ons). Before, deciding about you need to ask a specific question, for example, Do you need a GCC plan concealment if you do not travel outside of the UAE? Do you require a natural calamity cover for events like the flood when it barely drizzles in this part of the world? So be careful to while choosing a policy adjunct related to your requirements.

How do I buy the policy?

If you are contacting numerous insurance agencies available at UAE, then the BuyAnyInsurance.com is the best website to guide you or help you in your selection process. After you get decided on the plan and the agency. You will need to submit the following leaflets along with the premium fee – A duplicate of your valid Emirates Identity Card or the passport with legal UAE residence visa

  1. A copy of the driving license
  2. Car registration copy
  3. ‘No claims’ certificate (if applicable in your instance)

Note: Homework is essential to choose a suitable insurance policy. Furthermore, make a comparison between the insurance providers while using Car insurance websites in the UAE to make sure you will get the best deal.

What is agency repair?

Agency repair is a repairing in which your car may only be allowed to correct at the manufacturer’s authorized workshop not anywhere else. This is a usual benefit in the Comprehensive Insurance for up to 3 years from the first registration. If your car is older than one year, you need to provide a “No Claim Discount certificate” (NCD) from the previous insurer. it is included and offered as an additional cover by some of the insurance companies. 

What is No Claims Discount (NCD)?

No Claim Discount is a certificate which is the proof that you have spent some years without making a claim. You will need to ask your previous insurance company to provide you with an NCD, in case you change your insurance company. 

Do I need to submit any documents?

Yes, you need to submit your documents even though during the booking process you already left your personal and vehicle details, the insurance company will still want to receive proof of your identity, driving experience, and vehicle details.

  1.  If the car is registered in your name you need to submit the following documents:
  2. Copy of your driving license
  3. Passport, Visa and Emirates ID copies
  4. Copy of the Vehicle Registration card

Note:  if the car is new and has not been registered yet a copy of the (proforma) invoice, or customs clearance documents declaring the vehicle details. If the vehicle is registered as a company car you need to submit:

  1. Trade License copy
  2. Copy of the Vehicle Registration card

Note: In case of a new car that has not been registered yet, a copy of the (proforma) invoice, or customs clearance documents declaring the vehicle details.

Third-Party Liability Insurance is the primary and frequently less costly coverage that is mandatory under UAE law. It does not cover the car owner’s damage, including car damage but, covers the bodily injury or property damage of the third party by the insured vehicle. The policy also does not cover loss by fire or car theft.


Originally published Jul 31, 2019 16:46:46 PM, updated Aug 08, 2019

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