Buying Car Insurance in UAE? Here is a 10-Point Checklist for you
The benefits of car insurance make it a must-have. While buying car insurance is not rocket science, it isn’t child’s play either. Market awareness and patience are a pre-requisite to buying the best car insurance plan. That being said, there are two ways of buying car insurance. You can either follow the hard work approach or you can follow the smart work approach; the choice is all yours.
If you go with the former approach, you will have to start from scratch. You will need to do everything on your own, and it will take some time to come across the best plan. However, if you go with the latter approach, all you have to do is measure your policy against this checklist. It will take you lesser time to reach a sound decision as you will know what to do.
Here is our 10-point checklist that will help you buy car insurance in UAE the smart way.
1. Roadside Assistance Cover
It can be truly frustrating an event if your car breaks down in the middle of your travel. This is where roadside assistance, provided by your insurer, can prove to be a godsend. To avail this benefit, call on the emergency number that is generally on your insurance card/ left side of the windshield.
Many insurance companies tie up with other players like IMC (International Motors Club) and AAA Middle East to handle vehicle towing, mechanical repairs, emergency fuel delivery, flat tyres, battery boost and car lock-out. This coverage is valid across all the GCC countries with no cost to the insured unless specified otherwise.
2. Gulf Cooperation Council Coverage
Usually, car insurance in UAE includes GCC (Gulf Cooperation Council) coverage. However, that doesn’t give you permission to drive in any of these countries. Simply put, you will be in for a rude awakening if you think that this coverage is enough to get you a safe passage from one GCC country to another. In fact, it is only a comprehensive cover; you will have to buy a third-party cover at the border of the destination country. But that isn’t a cause for worry as this cover can be as cheap as AED 90 for 5 days.
3. Agency Repairs Cover
This coverage is much sought-after in the UAE as it offers you a provision to get your car repaired at the manufacturer’s workshop. Usually, people don’t realize the kind of repair service they are entitled to. Sometimes, policies only offer garage repairs, which can be a rude surprise for the owner.
The car you buy is typically eligible for agency repairs up to 5 years from the day you buy it; however, it varies over insurers. After this period, the owner will have to pay a higher premium to avail agency repairs.
4. Off-Road Cover
First of all, the insurer must understand the definition of off-road travel. It means traveling on unmarked roads that may or may not have been paved. Only 4WDs like Land Cruiser, Prado and Jeep can be offered off-road coverage on the payment of some extra-premium and a compulsory excess of AED 1,500.
However, it doesn’t cover activities like dune travel or wadi-bashing.
5. Does Age Matter?
Some companies have a policy of denying insurance coverage to cars older than 10 years old. In fact, it is quite tough to get an older car insured as it is based on the condition of the car. Furthermore, the age of the policyholder matters to the insurer as the premium is calculated on the basis of age, sex, and the driving history of the proposer.
6. Windscreen cover
Windscreen coverage is offered for AED 3,000, in some comprehensive insurance plans. If it isn’t, you can contact your insurance provider for any additional benefits that you would like.
7. No-Claims Bonus Discount
A special discount is offered on the renewal premium for a claim-free policy year. This discount is called No-claims bonus. Immigrants should bring their no claims certificate from their home country to avail this bonus in the UAE.
As a matter of fact, it can help you avail a waiver up to 40% of the policy premium.
8. Personal Accident Cover
A personal accident cover of around AED 2,00,000 can be opted for by the insured to cover the driver and co-passengers. However, an extra premium has to be paid for that. Usually, an additional AED 60 is levied for covering the driver and AED 15 for every extra member for whom the cover is extended to.
9. Comprehensive Insurance Cover Vs. Third-Party Cover
Third-party liability insurance is the basic minimum legal requirement in the UAE. It is a crime to drive a vehicle without such a cover and it attracts heavy fines. If you or your property are harmed during an accident with a third-party, the insurer of this party is accountable for the payment of the expenses incurred for your treatment or/and repairs of your property.
Furthermore, it also covers death and bodily injuries caused to a third-party by the insured.
On the other hand, a comprehensive insurance plan will not only cover you against your own damage/ loss, it also covers any third-party liability. Additionally, cover against fire, theft, natural disasters, and emergency medical assistance is also provided.
10. Compulsory Excess
Quite a lot of top-notch car owners ensure that the premium they pay includes compulsory excess while covering the complete value of the car. In fact, many insurance providers encourage it due to the fact that compulsory excess changes according to the model and price of the car. For example, the voluntary excess of Nissan Sunny 2009 will be around AED 200 and that of a brand new Honda Accord will be around AED 300.
Summing it up!!!
We hope this guide will help you to buy the best car insurance plan in the UAE. You can pick this information to fulfill your insurance expectations. At the time of buying vehicle insurance in UAE, make sure you buy adequate insurance coverage. When you buy insurance coverage for the sake of fulfilling your legal liability, you end up under-insuring yourself which can backfire later.
There is no point in having inadequate coverage because it jeopardizes your financial security. Insurance experts recommend buying the insurance plan that offers you a maximum financial security at minimum insurance price. Optionally, you can opt for add-on riders to avail enhanced benefits.