A Brief Guide to Car Insurance in the UAE

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If you own a car or are considering purchasing one in the UAE, it's crucial to understand the importance of car insurance. According to UAE's motor vehicle laws, every car on the road must have at least third-party insurance. Failing to adhere to this law can result in severe consequences, such as hefty fines, the suspension of your driving license, and even imprisonment in some cases.

However, the significance of car insurance extends beyond just legal compliance. It serves as a financial safety net in the event of accidents, shielding you from potential financial burdens. When choosing a car insurance policy, it's essential to prioritise its features and benefits. This ensures that you are protected from extensive legal liabilities and guarantees that your insurance provider will offer ample compensation to cover potential losses.

  • Comprehensive
  • Third Party
*Above mentioned prices are for Honda City EX 1.5L, 2017 model.
*Above mentioned prices are for Honda City EX 1.5L, 2017 model.

Continue reading to gain a deeper understanding of the different types of car insurance available and the benefits of various add-on covers.

Types of Car Insurance in UAE

There are two types of car insurance policies in  the UAE. These include:

  1. Comprehensive Car Insurance - Comprehensive car insurance is an extensive coverage plan that covers a wide range of incidents. Not only does it cover damages to your own vehicle from accidents, it also addresses liabilities towards a third party in the event of a mishap. Choosing the right insurance can sometimes feel overwhelming, but platforms like Policybazaar.ae make it easier. Here, you can compare offers from various reputable insurers, ensuring you get the best fit for your needs. Buying comprehensive car insurance online has many notable advantages. Besides comparing different policies to make an informed decision, you can also skip the hassle of submitting an application and waiting for approval. You can complete  the process within a few minutes and get your policy confirmation and details immediately. Also, you can avoid paying additional charges. 
  2. Third-party Liability Insurance - For vehicle owners in UAE, third-party liability insurance isn't just an option; it's a mandate. This basic car insurance safeguards you from potential financial liabilities in case you're at fault in an accident that results in damage to another person's property or injury to them While third-party insurance is often favoured due to its affordable premiums, it comes with a limitation: it doesn't cover damages to your own vehicle in case of an accident. This means, if you were to face an accident, you have to bear the brunt of the repair expenses.

The number of add-ons that you choose with your basic car insurance plan decides the premium amount and the extent of coverage. Depending on your damage protection needs, you may consider the add-ons that can be  added to your base plan:

  • Driver and Passenger Cover

The primary purpose of this cover is to provide financial compensation to the driver and the passengers in the vehicle in case of injuries or, in worst-case scenarios, death, due to an accident.

  • Replacement of Vehicle

The Replacement of Vehicle add-on, essentially, provides the policyholder with a temporary vehicle in situations where their own car is being repaired or is undrivable due to an accident. Depending on the insurance provider and the specifics of the policy, this add-on usually covers a certain number of days (like 10 days, 15 days, etc.) for which a replacement vehicle will be provided while the insured vehicle is under repair.

  • Roadside Assistance

Roadside Assistance is another popular add-on in car insurance policies, especially in countries like the UAE where long drives across highways and deserts are common. This feature provides immediate help to policyholders if they face car troubles while on the road. While many providers offer nationwide coverage, some plans may also provide assistance in neighboring GCC countries. It's essential to check the geographical scope of your roadside assistance add-on.

  • Natural Calamities Cover

You can opt for an added layer of protection, as comprehensive insurance doesn't cover damage repair costs of all-natural calamities. So, check with your insurance provider and the policy details of what it covers and then opt for natural disaster or calamities cover to help you out in times of difficulty.

  • Oman Cover 

The purpose of the Oman Cover is to extend your car insurance coverage to the Sultanate of Oman. Given the geographical proximity and the frequency of road trips UAE residents undertake to Oman, this add-on ensures that they are legally and adequately insured while driving in Oman.

Off-Road Coverage

It covers damage or loss of the vehicle while it is driven off-road.

Fire & Theft Coverage

It covers damage or loss to the vehicle due to theft or fire.

Windscreen Cover

It covers the cost of replacing or repairing the windscreen if it is damaged or broken.

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Final Words

Obtaining a car insurance in the UAE can be intricate, but it's undeniably crucial for vehicle owners. Upholding the UAE's stringent motor vehicle laws, one must possess at least a third-party insurance to legally drive. Beyond mere compliance, a comprehensive insurance acts as a financial shield during mishaps, mitigating unforeseen expenditures. 

Choosing the right insurance might be daunting, but with platforms like Policybazaar.ae, the process is streamlined. Furthermore, understanding and selecting the apt add-ons – be it the Oman Cover for those cross-border trips or Roadside Assistance for unexpected breakdowns – can significantly enhance your coverage. Always prioritise understanding the policy details, ensuring a safer and more secure driving experience in the UAE.

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