Commercial Vehicle Insurance

What is Commercial Vehicle Insurance in UAE?

Commercial vehicle insurance can be considered a type of car insurance for businesses. It is a contract between the insurer (insurance company) and the insured (vehicle or business owner). It safeguards commercial vehicles from a variety of risks while being used for business purposes. For a premium, the insurer agrees to provide compensation if an accident happens or a covered risk occurs. A standard policy typically covers damages, third-party liabilities, and losses.

This type of insurance is mandatory for businesses operating fleets. However, its importance goes beyond the legal part. It helps you safeguard your business from massive liabilities associated with the vehicles used for work.

Types of Commercial Vehicles Covered

Whether you run a small or large business, are involved in goods transportation, or provide services using vehicles, this type of business insurance in UAE is essential. While the coverage of each plan may vary, a standard policy can cover the following types of commercial vehicles —

• Heavy Transport Vehicles (HTV) — Large and small trucks, pickup trucks (usually more than 3 tonnes), forklifts, cranes, and construction equipment
• Light Transport Vehicles (LTV) — Company cars or taxis
• Delivery Vehicles — Pickup with freezer (generally up to 3 tonnes), motorcycles, vans, and enclosed vehicles

Why Do You Need Commercial Vehicle Insurance in the UAE?

Driving on the road can be unpredictable. When you’re running a business, the stakes are even higher. Accidents, vehicle damage, or third-party liabilities can lead to significant financial losses that could impact your business operations.

With commercial auto insurance in the UAE, you get comprehensive protection against these risks. This way, you can keep your business and vehicle financially secure.

Here are some of the main reasons to consider this insurance coverage —

Legal Requirement

In the UAE, you need insurance to drive a car. The same extends to commercial vehicles. Driving without insurance can lead to hefty fines, vehicle impoundment, and even legal consequences. A commercial vehicle insurance policy ensures you comply with local regulations.

Financial Security

Commercial vehicles are often high-value assets for a business operating in the UAE. In case of an accident, theft, or damage, insurance helps cover repair costs, replacement expenses, or medical bills. This, in turn, can reduce the financial burden.

Third-Party Liability Coverage

With this type of insurance, your business stays operational even if your vehicle causes injury or damage to a third party. This includes damage to other vehicles, property, or bodily injury claims. With your policy covering such expenses, you can safeguard your business from potentially huge legal costs.

Peace of Mind

With a comprehensive commercial car insurance plan, you can ensure peace of mind. A good policy can help you focus more on growing your business and managing operations without the constant worry of unexpected risks or losses.

Who Can Buy Commercial Car Insurance in the UAE?

Any business using vehicles for work purposes can buy commercial motor insurance in the UAE. The list includes —

• Small-scale businesses
• Medium-sized businesses
• Large corporations
• Individuals operating businesses

Types of Commercial Motor Insurance Policy in the UAE

Commercial auto insurance in the UAE is available under two categories —

Third-Party Liability Commercial Vehicle Insurance

It's the most basic insurance coverage, mandated by the government. It covers damages to third parties, including property damage and bodily injuries caused by the insured vehicle. Keep in mind that this coverage doesn’t cover any own damage or accident.

Comprehensive Commercial Vehicle Insurance

This is an extended policy that covers both third-party liabilities and damages to your own vehicle. It not only covers third-party liabilities but also losses or damages to the business’s own vehicles due to accidents and theft. Furthermore, many plans in the UAE also cover theft, natural disasters, legal expenses, total loss of the vehicle, and more.

Inclusions and Exclusions Under Commercial Vehicle Auto Insurance

Mentioned below are the general inclusions and exclusions under commercial vehicle insurance —

Inclusions

• Accidental or collision cover 
• Theft, burglary, and vandalism 
• Medical expenses 
• Natural disasters 
• Malicious acts of third-party 
• Loss of personal belongings
• National ambulance

Exclusions

• Wear and tear 
• Nuclear explosion 
• Consumption of alcohol or drugs
• Driving without a licence
• Overspeeding 
• Overloading passengers

Optional Add-Ons Under Commercial Vehicle Insurance

You can easily extend the coverage of commercial car insurance by adding optional add-ons to your standard plan. Some of the popular add-ons include —

• Agency repairs 
• Roadside assistance 
• Geographic extension 
• Personal accident benefits 
• Hire car
• Loading & unloading
• RTA registration

✍️ The inclusions, exclusions, and add-ons above may vary as per your insurer and the policy type. Always read your policy documents carefully before proceeding with the purchase.

Why Choose Policybazaar UAE for Commercial Vehicle Insurance?

On Policybazaar.ae, you can find the best insurance plans for your commercial vehicle. Understanding the importance of protecting the vehicles crucial for your business, we’re committed to providing you with the best insurance solutions.

Here’s why you should choose a policy through our platform —

Association with UAE’s Top Insurers

We have partnered with the leading insurance providers in the UAE. This way, you can find the top policies to cover your commercial vehicles safely.

Extensive Coverage Options

You can get extensive coverage for your commercial vehicles in the UAE. From third-party liability to comprehensive insurance, we offer a range of plans to suit your business.

Tailored Insurance Solutions

Understanding your unique business requirements, we deliver tailored commercial motor insurance plans. No matter what type of vehicle drives your business forward, we’ve got it covered!

Dedicated Customer Support

Our team of experts is just a call away. So whether you want support for policy purchase or claim, you can get quick assistance from us.

Cost-Efficient Insurance Plans

Insuring your business doesn’t have to cost a fortune. We bring you competitive commercial auto insurance quotes and value-packed plans that maximise protection while minimising expenses.

Streamlined Claim Assistance

With us, the claim process is straightforward. We assist you in the claim process — from documentation to filing. This way, you don’t have to take time off from the business just for the claim.

Factors Affecting Premiums of Commercial Vehicle Insurance

Many factors affect the cost of commercial auto insurance in the UAE. Here is an overview of the major ones —

Insurance Type

The premium of your policy is determined by the type of coverage you choose for your vehicle — comprehensive or third-party liability. In the UAE, third-party liability insurance is the minimum legal requirement. It is generally more affordable than a comprehensive plan, which offers higher coverage.

Vehicle Type 

The type of vehicle that you use for business operations also influences the price of a commercial car insurance policy. Heavy vehicles like trucks, cranes, or pickup trucks usually have higher premiums. Smaller or lightweight commercial vehicles, on the other hand, typically cost less to insure.

Vehicle Usage

How your vehicle is used for business purposes also impacts the costs. Regular deliveries, long-distance travel, or transportation of goods may require higher coverage limits to safeguard against potential risks.

Additional Coverages

Choosing additional coverage on your standard commercial car insurance plan can bring extra charges, increasing the overall costs.

How to Buy Insurance for Commercial Vehicles Online?

You can easily buy insurance for your commercial vehicle with Policybazaar.ae. Simply follow these steps below —

• Click the button below
• Fill out the form with the required details 
• That’s it — our team will be in touch with you soon!

How to File a Commercial Motor Insurance Claim?

Here are the key steps to follow when filing a claim for commercial auto insurance in UAE —

• File a report at your nearest police station 
• Get a copy of the report
• Immediately contact the insurer and share all the relevant details 
• Submit the claim form along with the required documents
• Drive your commercial vehicle to the network garage of the insurer, where an expert will assess the damage 
• After the approval of the insurer, get your vehicle repaired at the garage

Documents for Commercial Vehicle Insurance Claim

When filing a claim against commercial car insurance in the UAE, you may need to submit the following documents —

✅ Filled out claim form

✅ Emirates ID

✅ Copy of the police report 

✅ Driving licence

✅ Copy of the company’s trade licence 

✅ Vehicle ownership proof 

✅ Details of insurance policy

✍️ The insurer may ask for some additional documents.

Tips for Choosing the Right Commercial Motor Insurance

It’s essential to choose the best commercial auto insurance plan to protect your business from financial losses. Here are the top tips to find the right coverage for your commercial vehicle —

⭐ Get the right coverage by assessing your business needs as per the vehicle type, driving record, business operations, and more 

⭐ Compare multiple commercial auto insurance plans to find the best one

⭐ Choose the right add-ons that actually work for your vehicle and enhance the coverage of your standard plan

⭐ Make sure to know all the details of your insurer, including the claim settlement process, reputation in the industry, and more 

⭐ Before signing the policy, understand the key terms and conditions, including inclusions and exclusions 

⭐ Choose an insurance company with a high claim settlement ratio in the UAE 

Commercial Vehicle Insurance- FAQs