Car insurance is mandatory as per UAE law. Find the one that fits your need and budget.
You’ve just bought a car in the UAE or renewing your insurance – there are questions that pop up in your mind.
Should I go for the cheapest in the market or the first one to come back to me? What kind of cover should my policyhave? Even for people renewing their car it’s a good idea to refresh the jargon and options available.
So here’s a quick guide to everything that you need to know about car insurance in the UAE:
Why do I need Car Insurance in UAE?
According to the UAE law, it is mandatory for all vehicle owners to get motor insurance cover. More importantly, carinsurance protects you financially in case of an accident and gives you peace of mind.
What type of Car Insurance options can I go for?
The type of insurance you will pay for will depend on two things:
There are mainly two types of car insurance coverage available in the UAE:
1. Comprehensive Insurance:
Comprehensive car insurance will offer you a more thorough protection (also called ‘Full’ insurance in the UAE market). It covers damages to your car caused by an accident either by yourself or a third person. It also covers damage to your car due to theft, or act of vandalism or fire.
Because it covers damages for all parties involved, the premium on a Comprehensive insurance is higher in comparison to your other option – which is:
2. Third Party Liability (TPL):
Third Party Liability car insurance will only cover damages caused by you to other people’s car or property. If you are at fault then this policy won’t cover any repair work for your own car. The insurance company is only liable to pay to the third party involved in an accident caused by you.
In cases where you have an accident at no fault of your own then you need to determine if the other party’s insurance company will pay for your damages.
As the cover is limited in this type of policy, your premium will be lower in comparison to a comprehensive car insurance policy. Many new buyers often make the mistake of choosing this cover because it seems more affordable upfront but may result being more expensive for your pocket should an accident happen.
Other things to Consider:
Here are some add-ons to consider adding to your policy (Some of them would already be covered in a Comprehensive insurance policy):
Changing the type of Insurance Coverage during renewal: Beware that most insurance providers will not easily allow converting your Third Policy insurance to a Comprehensive policy once you’ve gone ahead with Third Party for a particular year.
Roadside Assistance: In cases of breakdowns and being stranded, this service will provide you with a towing service wherever you happen to be in the UAE. We normally recommend all customers to ensure this is covered as it can get very expensive to pay out of pocket.
GCC Coverage: If you drive often to the neighbouring GCC countries, this coverage is a good inclusion to have. Some countries, like Oman, will not even allow you entry unless you have the right insurance.
Agency Repair: Usually important for brand new vehicles (up to 2 years) – Getting your car repaired from the official dealer of the car ensures authentic parts are used and may even provide better servicing.
Car Rental: If your car is in the workshop, some policies cover the cost of renting a car during the repair period. Do check the number of days the policy is willing to cover for each repair incident.
Passenger Accident Benefits: This covers death or any bodily injury to you or the passenger in your car at the time of an accident, as well as any personal items, such as your cell phone, that gets damaged on impact.Looking to insure your car? Find the best deals through UAE’s most trustworthy insurance providers at www.greenshield.ae
