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A Brief Guide to Car Insurance in the UAE

A Brief Guide to Car Insurance in the UAE
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In the UAE, having car insurance is mandatory by RTA law for every car owner just like health insurance. So, whether you live in Sharjah, Abu Dhabi, and Dubai, if you don’t have a motor insurance coverage, you might subject hefty penalization. This simply means that any four-wheeler operating on the roads of UAE must have car insurance.

A right car insurance policy offers you security and protection from liability in an event of an unforeseen event. Finding the best auto insurance policy in the UAE can be quite difficult with all the available options & benefits to choose from. That is why, you need to be sure of your insurance requirements before you compare car insurance and choose the right insurance policy for your vehicle.

Here we have mentioned some important points which you must know before buying a car insurance policy for your car.

Types of Car Insurance in the UAE

There are two basic types of auto insurance policies in the UAE.

Third-party Liability Insurance Policy

Third-party liability (TPL) car insurance policy is the most basic and mandatory type of auto insurance as per the UAE RTA law. This type of car insurance policy offers you protection against all claims you will be liable for such as damage to the vehicle or property, bodily injury, or loss of life to a third party. TPL does not cover the damages caused to your own vehicle. Since this policy provides basic coverage, it is quite affordable and cheaper than other car insurance policy. Please note that if your four-wheeler is 7 years or older, third-party liability car insurance policy is the only option that is left for you.

Comprehensive Insurance Policy

The comprehensive car insurance policy is one of the best auto insurance policies on which you can easily count on in times of need. As this type of car insurance policy offers you wider protection. It covers all costs under third-party liability as well as the cost of repair or replacement of your own vehicle whether it’s your fault or not.

This type of motor insurance policy also covers damages to your vehicle due to the external explosion, fire, self-ignition, accidental collision, burglary or theft. The comprehensive car insurance policy also includes agency repairs for four wheelers a maximum of one & two years of age, depending on the car insurance company. However, the only limitation is that this type of auto insurance policy is only available for vehicles up to seven years old.

Additional Add-on Cover Options with Your Auto Insurance Policy

In order to avail maximum protection, you can pair a comprehensive car insurance policy with additional add-on cover options. There is a wide range of car insurance companies available in the market that enable you to choose from a variety of add-ons which further determine your final car insurance premium. Based on your insurance needs, you can include some of the given below add-ons covers to your insurance policy to make the most it:

Agency Repair

Agency repair is ideal for all expensive four-wheeler owners. This add-on cover gives an assurance that your four-wheeler will be serviced by ‘authorized personnel’ at your vehicle’s manufactured workshop in case of an accident. Getting your vehicle repaired from the official car dealer will ensure the authenticity of the parts used & better car servicing.

Most of the reputed car insurers offer this add-on for a maximum of five years from the date of manufacture along with a comprehensive auto insurance policy.

Roadside Assistance

If you run out of fuel or your car suddenly breaks down in the middle of the road, this add-on cover will assist you by providing towing service/mechanic wherever is needed in the UAE.

GCC Coverage

If you frequently travel to the neighboring GCC nations then this is a must have add-on cover for you. In fact, some of the countries such as Oman, Saudi Arabia, Qatar, Kuwait, and Bahrain will not even allow you to enter until and unless you have a valid GCC insurance.

Personal Accident Cover for Driver & Passengers

This add-on offers financial compensation if the driver or passenger dies or sustains a bodily injury in case of an accident, a maximum of 200,000 AED per person insured.

Medical Expenses

It covers medical expenses (to some specified limit) incurred by the drivers or passengers within twenty-four hours of an accident.

Personal Belongings Cover

It covers damage or loss to your personal belongings such as mobile phone or laptop (to some specified limit) while kept in the insured vehicle.

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.

Final Words

So, now you might have a clear idea about different car insurance policies as well as add-on covers that are offered with comprehensive insurance policy.

Before you opt for a motor insurance policy for your vehicle, you must take extra care while choosing a car insurance company. As there is multiple car insurers are available in the market so it can be difficult to choose the best one. The ideal way to find the right insurance policy is by practicing car insurance comparison in UAE. This will allow you to compare different car insurance quotes based on their features, insurance coverage, and premium.

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