A Beginner’s Guide to Car Insurance Policy

A Beginner’s Guide to Car Insurance Policy
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While purchasing a car you may have spent a good amount of time in finding and researching which car brand or model you should go for. After months of effort, you have finally invested a huge amount in purchasing your car. You are excited to take your car out for a spin down the iconic Sheikh Zayed Road. But before you take it out on the roads of the UAE, ensure your vehicle is insured since car insurance in UAE is mandatory as per the RTA law.

But now the main concern is – how to choose the best auto insurance? Should you opt for the cheapest one available in the market or buy the one that offered to you at first? What aspects should your car insurance policy cover? If you are buying car insurance for the very first time, all the options and jargon might seem confusing.

Here is a quick guide to everything that you should know before buying car insurance in UAE.

Why do you need car Insurance in the UAE?

As per the UAE RTA law, it is compulsory for all car owners to buy an auto insurance policy. In addition to this, an adequate auto insurance policy safeguards your vehicle in an event of an accident or a natural calamity. In simple words, all the expenses that have been done on your vehicle’s repair work because of an accident will be paid by the car insurance company.

What are the types of car Insurance in UAE?

Ideally, there are two types of auto insurance policies are available in the UAE and they are as follows:

Third-Party Liability Insurance

As said earlier, auto insurance is mandatory in the UAE and it needs to be noted that only third-party liability insurance is compulsory by the RTA law. It is the basic type of auto insurance policy that will cover the damages caused by you to the third-party’s vehicle. Thus, if you buy third-party liability insurance, the insurance premium will be less but keep in mind that you will have to pay for the damage of your own vehicle in case of an accident. Many people who buy car insurance for the first time make the mistake of choosing this cover since it is affordable.

Comprehensive Car Insurance Policy

As its name suggests, a comprehensive auto insurance policy offers wider protection. This type of insurance policy covers the damages to your vehicle caused by a third person or by you. Also, it will cover the damage to your car because of theft or an act of fire or vandalism. Apart from this, it can be further customized by buying add-on covers.

Since it offers wider coverage, this type of auto insurance policy generally tends to be expensive as compared to the third-party liability insurance.

What are the Add-on Covers are available with Car Insurance in UAE?

There are many car insurance add-on covers are available in the UAE that you can opt for along with the comprehensive car insurance policy. Some of the most important add-ons are as follows:

  • Roadside Assistance: It offers breakdown/accident recovery services including battery jump-start, vehicle towing, replacement of tyre, etc.
  • Off-road coverage: It covers damage or loss to the vehicle while it is being driven off the road.
  • Personal belongings cover: This add-on cover damage or loss to your personal belongings (up to some specific limit) while it is kept in the insured vehicle.
  • GCC Coverage: It extents territorial coverage to GCC countries such as Kuwait, Saudi Arabia, Oman, & Qatar.

Apart from all the above-mentioned add-on covers, there are some car insurance policy add-ons such as agency repair, personal accident cover for driver & passengers, oman extension, windscreen cover, car rental dent repair, etc. Based on your insurance needs, you can opt for any of them by an paying extra premium.

The Bottom Line

Due to multiple car insurance policies offered by different companies, it is always advisable to compare car insurance UAE based on their coverage, premium, add-ons, and other features. This will certainly help you to choose the right auto insurance policy.

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