Car Insurance

Car Insurance is kind of insurance that looks out your prized possession. It takes care of all the expenses incurring due to unforeseen events such as theft, accident, mishaps, and third-party liability. You can protect your car and yourself from all the financial contingencies including legal liability, resulting from traffic collision, physical damages, and bodily injury to your car, you or third-party.

Decoding Car Insurance UAE

Insurance is an agreement through which an insurance provider guarantees to offer a pre-decided compensation in case of any specified damage, loss, or death in exchange for a premium. Car insurance is an auto insurance plan which is formulated to ensure the automobile and its occupants from any financial setbacks. An insurance policy also offers assistance in case of any road mishap.

Benefits of having Car Insurance in UAE

Here are the benefits of having motor insurance in Dubai:

  • Mostly, all the insurance companies provide car registration services to the policyholders. Otherwise, it can be a tedious task.
  • In case the car is stolen, the insurer will reimburse the value of the car.
  • Any loss or damage arising due to an accidental collision on the road with another car, animal or things like a pillar or building is also covered in car takaful in UAE.
  • Any loss or damage due to weather conditions is also covered
  • Any loss or damage due to fire or external explosion is also covered

Types of Car Insurance in UAE

Mentioned below are 2 different types of car takaful policies in Dubai. Based on the preference one can easily compare car insurance online -

Third Party Liability Car Insurance

It is mandatory to have third-party liability insurance for every car owner in Dubai. It is the most basic form of car insurance in Dubai, as it offers protection against any third-party bodily injuries or property damage incurred by the insured vehicle.

Policy holder’s own damage like accidental collision, fire, and theft is not covered by third-party insurance. Anyone who is buying third-party insurance should be ready to meet the repair expenses arising from an accident on their own.

Comprehensive Car Insurance

Comprehensive car Insurance protects your vehicle from all the damages arising out of theft or fire, and also pays out to the third party if you are involved in any mishap or accident. This type of car insurance also pays out if your four-wheeler’s insurance.

Significance of Car Insurance in Dubai

In a last couple of years, Vehicle Insurance in UAE has witnessed tremendous growth. Auto Insurance industry has contributed to the economic boom and has made UAE a financial stronghold. Now that there are more vehicles on the roads, the demand for motor insurance in Dubai is growing exponentially. As a result, the number of insurance providers in Dubai has increased.

In the last 5 years, Abu Dhabi witnessed a 700 percent growth in the number of automobiles. You can find the world's swankiest, fastest and most expensive cars in the streets of Dubai. This makes Car Insurance in UAE a necessity. The demand for car insurance in Dubai is growing rapidly as well.

As car sales are over the roof, the risk of road accidents has also been magnified. This imposes a threat to the lives of car owners, fellow car drivers, as well as the pedestrians. A comprehensive insurance plan ensures your financial safety even in the worst case scenarios. In addition to that, as per the local laws, it is mandatory for vehicle owners to buy motor insurance in Dubai for their vehicles.

Vehicle owners who don't buy insurance coverage for their automobiles are liable to be penalized.

Top Car Insurance Providers in the UAE:

Here are the best car insurance companies with their special features:

Insurance Company

Why it rocks?

Oriental Car Insurance

  • Car Rent services
  • Refueling services
  • Vehicle towing assistance
  • Lock-out service support

SALAMA

  • Key insurer in Shari’ah Compliant Takaful Solutions
  • Tailored Takaful Solutions

New India Assurance Company Limited

  • Rent-a-car benefit
  • Off-road coverage for private motor
  • Agency repair coverage
  • Road support coverage

Adamjee Car Insurance

  • SMS alerts for the claim processing
  • 24x7 customer assistance
  • Biggest dealer network assistance across the country
  • Affordable premium rates

WATANIA

  • Roadside support and assistance
  • International DL discounted
  • Eases Mulkiya Renewal Registration procedure

Car Insurance Inclusions

These are some of the common services provided to the beneficiaries of the insured vehicle.

  • On-Site Repair Assistance - If the insured car breaks down in the middle of the road, the insurer will recompense the cost of repair.
  • Towing Assistance - In case the insured vehicle breaks down or meets with an accident, the insured will get transportation or towing assistance to the nearest workshop.
  • Extraction and Removal - Crane assistance is provided to remove or extract the insured car from the place of incident in case of breakdown due to an accident.
  • Flat or Leaking Tyre Assistance - In case any of the tyres go flat or there is any leakage, the insurer will provide assistance to remove or replace the tyre without any labor charges.
  • Dead Battery - This can be a serious problem. In this case, assistance is provided to jump-start the engine so that the vehicle can be taken to the nearest garage for repair.
  • Unlocking Ignition Key - Roadside assistance is provided to unlock the car, in case the keys are accidentally left inside the car.
  • Refueling - Fuel assistance is provided if the vehicle runs out of fuel while driving on the road.

Additional Covers

  • Personal Accident Cover - Personal accident cover can be added to your existing motor insurance policy. Both the driver and passengers can get coverage in this.
  • Off-road Coverage - Policyholders can enjoy off-road coverage against any mishap that may occur off the roads.
  • Windscreen Damage Cover - Not every insurance company in Dubai provides this coverage but there are some that provide windshield repair or window damage cover. For luxury and sports cars, it can be an expensive affair without insurance.
  • Agency Repairs - A majority of vehicle insurance providers offer agency repair services for up to 5 years from the date of issuing the policy.
  • Car Hire Cover - This is one of the most frequently used optional benefits for motor insurance in Dubai. The insurance provider will compensate the cost of renting a spare vehicle. The miles, duration and amount vary from policy to policy.
  • 24 Hours Roadside Assistance - Car Insurance in UAE comes with roadside assistance facility, in case the insured vehicle breakdowns or if an emergency arises.
  • Car Cash Benefits - A few motor insurance companies in Dubai offer their policyholders car cash while the insured car undergoes required repairs. Meanwhile, the policyholder can hire another car, and the expense would be paid by the insurance company.
  • Personal Coverage - In a majority of cases, the policyholders enjoys coverage of personal belongings up to AED 5,000. In case of theft, their personal belongings will be covered.
  • Large Third-Party Cover - The policyholders get massive third-party coverage of up to AED 5 million.
  • Free Pick-Up and Drop-Off - A few insurance companies in Dubai offer their policyholders free pick up and drop off services to the airport.
  • Natural Calamity Cover - A majority of motor insurance companies provide coverage in case of natural calamities.
  • Emergency Medical Expenses Cover - Some insurance companies offer their policyholders the facility of availing emergency medical charges up to AED 3,500.
  • Grace Renewal Period - In case a policy lapses, a few insurance providers offer their policyholders a grace period of 1 month to renew their vehicle insurance plan.
  • Emergency Accommodation Expenses - Emergency accommodation expenses are also provided if the vehicle is immobilized due to accidental damage.
  • GCC Cover/Oman Cover - People who drive often to neighboring countries, this optional benefit is a must for them.

It is essential to compare the insurance benefits from different four-wheeler insurance companies and then choose the best car insurance plan including the additional covers or optional benefits. A little know-how in this regard can help one save considerably on the insurance premium.

Car Insurance Exclusions

Your Car Insurance in Dubai will cease to exist in the following circumstances:

  • Driving with an Invalid License - If the driver drives without a valid DL (Driving License)
  • Driving Under the Influence of Intoxicants - In case the driver drives in under the influence of intoxicants such as alcohol, drugs etc., and meets with an accident
  • Overloading - In case the insured automobile was overloaded or was encumbered beyond the defined capacity
  • Providing Misleading Information - In case false or misleading information is provided to the insurance provider at the time of buying the insurance plan
  • Intentional Damage - In case it's proved that the damage/accident was caused intentionally/deliberately
  • Unethical Use of Insured Vehicle - In case the insured vehicle is used for any purpose except as mentioned in the insurance policy
  • Claims Filed After 3 Years - Motor Insurance providers in Dubai don't entertain claims registered 3 years after the accident

How to Select the Best Car Insurance Plan in UAE?

You must be wondering how to choose the best car insurance plan. Well, it's as simple as buying clothes. There are plenty of motor insurance companies that offer various car insurance plans. Thanks to a large number of insurance companies in Dubai, you can get motor insurance plans at a competitive price. It is so because there is a cut-throat competition among insurance providers. Every insurance provider aims to earn the trust of insurance buyers so that it can capture a large share of the flourishing vehicle insurance sector.

Mentioned below, are the tips that will help you select the best car insurance in UAE:

  • Understand Your Insurance Needs and Expectations - When you know what you want, it becomes easier to analyze whether a plan fulfills your car insurance expectations or not.
  • Reputation and reliability of the Insurance Provider - The reputation of an insurance company helps you understand the treatment it gives to a claim. Furthermore, the financial health of an insurer is the second most important factor as it reflects the financial status of your preferred insurance provider.
  • Compare Plans and Prices - If you want to enjoy the highest insurance coverage at an affordable price, don't simply buy the first plan that you come across. Compare various four-wheeler insurance plans in Dubai online and pick the one that fulfills your insurance expectations without costing a bomb. For comparing car insurance online in UAE, you can take the help of an insurance web aggregator. A web aggregator compares the plans of different insurance providers and provides the best possible plan according to the requirement of an insured.    
  • Evaluate the Insurance Coverage - While you aim for a policy, you need to consider adequate insurance coverage. Buying inadequate insurance coverage is worse than buying no insurance coverage at all. The plan that suits your friend might not suit you. It's better to evaluate or compare car insurance coverage and see if it fulfills your insurance expectations.

Documents Required To Purchase or Renew Your Car Insurance

If you are renewing your car insurance plan from a different insurance provider, then you will need the following documents –

Car Details

Personal Details

  • All the car registration details (Mulkiya)
  • Car Modification Certificate (if any)
  • No-claims discount certificate (if applicable)
  • A copy of passport
  • UAE Resident Certificate
  • UAE Visa Copy
  • Valid UAE driving license

No Claim Bonus/Discount

No Claim Bonus is a discount given by the insurance provider to the policyholder for not making any claim in the preceding years. It can also be availed while renewing the policy.

While switching the policy, the motor insurance provider gives a no-claim bonus certificate to the insured. This certificate can be given to the next insurance provider to avail the same benefits.

NCB is a discount earned by the policyholder by maintaining a claim-free record. And, it is considered as one of the most reliable ways of reducing the amount of car insurance premium.

The insured can avail up to 20% deduction on the premium depending on the number of claim-free years. However, the percentage of discount may vary from one insurance provider to another.

Please note that NCB is applicable to a comprehensive vehicle insurance policy and not third-party car insurance.

Best Car Insurance Companies in UAE

Salama Islamic Arab Insurance Company

Islamic Arab Insurance Company aspires to be the top insurance company by offering innovative and tailor-made Takaful car insurance plans. The company religiously follows Shari’ah principles in order to conduct their business. The car takaful provider focuses on its customers and aims to provide a quality service, as set by international standards. Guided by the principles of integrity, honesty, trustworthiness, and fairness, this insurance provider deals with the stakeholders in an ethical manner. 

Oriental Insurance

The Oriental Insurance Company is one of the prominent names in the Indian General Insurance market. During these 65 years, the company has expanded its operations overseas, including the UAE. Since 1960, it has been operating in collaboration with Armab Insurance Works LLC. Oriental Insurance also extends support to other companies operating in The Gulf Cooperation Council (GCC).

In these 54 years, the company has gained a loyal clientele for its quick and efficient insurance services. It is one of the leading Motor Insurance providers in the UAE. The insurance plans are designed to meet the personalized needs of the customers.

Adamjee Insurance Company Limited

Adamjee Insurance Co. Ltd. is one of the top insurance providers in Pakistan. AICL has registered its presence in the UAE and is committed to offering the best car insurance in Dubai and the UAE. AICL’s has earned the trust of various insurance buyers in the UAE by offering best car insurance plans that fulfill the insurance expectations of the insurance buyers.

New India Assurance:

New India Assurance Company Ltd. is a General Insurance Company that was founded in the year 1919 by Sir Dorabji Tata. Today, the company operates in 28 countries and the UAE is one of its prime overseas locations. The New India Assurance offers insurance for cars by keeping the needs of the car buyers of this region in mind. The company compensates the insured for various incidents of accidents, but within the limits specified in the policy. An insured can customize his/her motor insurance plan according to the requirement.

Union Car Insurance

The Union Insurance company was established in the year 1998, and it is listed on the Security Exchanges of Abu Dhabi. The company is also certified by the UAE Insurance Authority and has its presence in the motor insurance market of the country. The affordable and comprehensive car insurance packages of this company fit the ever-evolving requirements of the car owners of the country. Being one of the trusted car insurance providers, the company gives an option to customize the car insurance packages to its users.

Watania Insurance

With the mission of Keeping you on the move and protecting you from the unexpected, Watania Insurance is providing excellent coverage against car damages since the year 2011. The company was founded as a joint venture of Abu Dhabi National Insurance Company, Abu Dhabi National Energy Company, Abu Dhabi National Islamic Finance, and Aldar Properties in 2011. But, the structure of shareholding changed in the year 2014, wherein Al Madina Takaful, MB and Oman Investment, UAE took over 60% stake of the business. Currently, MB Investment has 52% stakes, Al Madina Takaful (Oman) has 9.54% stake, ADNIF has 15.74% stake, and Bin Harmal has 8.37% stake in the company.

How to File a Claim for Car Insurance in UAE?

If the right claim filing procedure isn't followed, your claim might get rejected. Follow the steps mentioned below if you have to file a car insurance claim in Dubai, UAE:

Step 1 - Contact your car insurance provider as soon as possible

Step 2 - Cooperate and provide complete information such as your full name, policy number, policy duration, date & time of the accident, a copy of the driver's license & license plate number of the involved parties, names & contact details of the involved people

Step 3 - Visit the nearby police station and file a complaint. Make sure you get a copy of your complaint as some car insurance providers ask for it

Step 4 - Once you have informed your auto insurance provider, a professional will be assigned to your case for its assessment. The surveyor will evaluate your case and will inspect and examine your vehicle so that your claim could be duly processed

Step 5 - Your case will be resolved by the professional on the basis of your opted plan and its coverage

Why buy Car Insurance through Policybazaar.ae?

Policybazaar.ae, a group company of Policybazaar.com - India’s largest insurance web aggregator, strives to offer an extensive range of insurance products to cater to the needs of vehicle owners. With a quick and simple comparison of various car insurance policies, some of the obvious reasons to choose Policybazaar.ae are:

  • Offers instant car insurance quotes online.
  • Option for comparing quotes of various car insurance providers and selecting the best policy that matches the requirements of the customers.
  • Offers the most affordable and suitable car insurance policies by comparing among the largest car insurance providers of Dubai and UAE.
  • If a customer needs assistance, we can provide the help of our insurance advisors either via email or by phone.
  • Provision of after-sales service, which offers unparalleled sales assistance to the customers even after buying a car insurance policy.

Over to You!

While buying car insurance, you must go do a thorough research and take a call. Finding the best car takaful in the huge market can be baffling at times. Ensure that you go through the terms and conditions of your car insurance policy carefully before making a deal. A lot of insurance buyers take the premiums into consideration while purchasing a car policy; however, it makes more sense to take all the necessary factors into consideration including the inclusions and exclusions, etc. that may have a major effect in the future.

Motor Insurance Insurer

Features & Benefits

Eligibility Criteria

Oriental Car Insurance

  • Comprehensive cover
  • Motorcycle cover
  • Third-party liability cover
  • Motor fleet - comprehensive insurance
  • Loss or damage arising due to accident, collision or overturning of the vehicle
  • External explosion and fire cover
  • Theft cover
  • Roadside assistance
  • Motorcycles up to 350cc 
  • A Resident of the UAE
  • UAE driving license
  • Passport size photograph
  • Should be a light motor vehicle ( maximum up to 3 tons)

New India Assurance Car Insurance

  • Comprehensive & third-party liability cover
  • Fleet cover
  • Loss or damage arising due to accident, collision & overturning of the vehicle
  • Theft cover
  • Coverage against the malicious act of a third-party
  • Mandatory vehicle registration  with RTAs of UAE
  • Valid UAE driving license
  • Only for the UAE Residents

Salama Islamic Arab Car Insurance

  • Accidental loss or damage to the insured vehicle
  • Burglary cover
  • An external explosion and self-ignition cover
  • Third-party liability and comprehensive cover
  • Special plan for vehicle export cover from one emirate to another
  • Valid UAE License
  • Should be a resident of the United Arab Emirates
  • Should be legally registered

Union Car Insurance

  • Agency repair
  • Car replacement service
  • Personal accident cover up to AED 1 million
  • Personal belongings cover
  • Superior auto assist – airport pick and drop facility
  • Emergency medical assistance
  • Special Etisalat moto insurance scheme
  • Should be a resident of the UAE
  • Hold a valid registration vehicle card
  • Car modification certificate ( if any)
  • Valid UAE driving license

Watania Car Insurance

  • 24 hours roadside assistance
  • Mulkiya renewal registration facility
  • International driving license registration support
  • Accidental damage cover
  • Get instant online quotes
  • Emergency medical expenses cover
  • Fire and theft cover
  • Coverage against natural calamities
  • Coverage extendible to GCC countries including Jordan, Bahrain
  • Agency repair on payment of  additional premium
  • Authorized UAE driving license
  • Vehicle registration proof

Adamjee Car Insurance

  • Third-party coverage
  • Competitive rates of premium
  • Largest dealer network support
    throughout the country
  • Coverage against theft
  • Coverage against accidental
    damages
  • Round the clock customer support
  • SMS alert
  • Authorized UAE
    driving license
  • Proof of vehicle
    registration

What are the Eligibility Criteria for Purchasing Motor Insurance in UAE?

Ans:

Anyone can buy car insurance in UAE provided he/she is a resident and falls in the age group from 25 years old to 65 years of age, having a valid driving license since 1 year or 2 years in case they have transferred from another country to UAE.

What are the Factors that Affect Car Insurance Premium?

Ans:

There are various factors that affect your car insurance premium. These factors include the driver’s age, the driver’s location, vehicle type, vehicle’s value, claims history and the insurance buyer’s driving experience.

Do I Get Coverage for any Damage Caused Off the Road?

Ans:

Yes, some auto insurance plans provide coverage for off-road damages. However, the insurance can only be claimed if the automobile is used for the purposes mentioned in the policy. In case it is being used for competitive events or race events, no coverage will be provided. While the T&C (terms & conditions) for off-road cover varies from insurance company to insurance company, make sure you read the policy wording carefully before buying.

In Case I Sell my Vehicle, can my Policy be Transferred to the New Buyer?

Ans:

No. Your insurance premium is calculated on the basis of your profile, so your insurance policy can’t be transferred to the new buyer. In case you plan to sell your car, you’ll first have to cancel your insurance plan so that the new car owner can buy a fresh insurance plan.

What is the Difference between Comprehensive Insurance Plan and Third-Party Liability Insurance Plan?

Ans:

Here is the difference between a comprehensive insurance plan and a third-party liability insurance plan.

 

 Third-Party Liability Insurance Plan

Comprehensive Insurance Plan

Vehicle insurance plans purchased to cover third-party liability are formulated to cover bodily injuries/ death of a third-party along with the damages caused to the property of the third-party by the insured vehicle.

The insured car doesn’t enjoy any insurance coverage in the event of a loss or damage under the third-party plan. As per UAE laws, it is mandatory for vehicle owners to buy auto insurance plans for their vehicles to cover any third-party liability.

 

Comprehensive insurance plans offer adequate insurance coverage against damages or losses caused by third-parties along with own damages.

 It provides insurance coverage against burglary, theft, fire, accidental collisions, self-ignition, lightning, external explosions, etc.

Is it Necessary to Buy Car Insurance in UAE?

Ans:

Yes. As mentioned above, as per the law, it is mandatory for vehicle owners to buy car insurance for their vehicle plying on UAE roads. Furthermore, a car insurance plan offers the much needed financial safety & damage coverage to your car. In case of accidents or theft, you don’t have to bear losses from your own pocket.

What is Third-Party Liability Coverage?

Ans:

If you buy third-party liability coverage, you can enjoy insurance coverage for damages caused to a third-party in case your vehicle meets with an accident. It provides coverage in case there is a loss of life or any bodily injuries caused or damages are caused to a third-party’s property because of an accident caused by your car.

While it comes at an affordable premium, it doesn’t offer coverage for any damage caused to your own automobile.

What is Comprehensive Insurance Coverage?

Ans:

A comprehensive insurance plan includes the benefits of a third-party liability plan with that of own damage plan. It provides insurance coverage for damage repair expenses of your own automobile and those of any property because of a road mishap.

Apart from accidents, the instances mentioned below are covered as well.

1. Fire

2. Overturning

3. External explosion

4. Theft

5. Burglary

6. Repairs

7. Damage caused to your vehicle by any third-party on purpose

Since a comprehensive insurance plan offers enhanced insurance benefits, it comes at a higher insurance premium for obvious reasons. While a comprehensive insurance plan offers adequate insurance coverage, it is available only if your car is less than seven years old.

If you buy a comprehensive insurance plan, you can opt for some add-on covers in order to avail the desired coverage. Add-ons like personal accident cover, death cover for the driver as well as other passengers, an extension of the area(cross-country) to file a claim, coverage for rental vehicles etc. are widely opted for by the insurance buyers.

How is the Car Insurance Premium Formulated?

Ans:

The premium you pay for availing car insurance is affected by several factors such as the following

1. Driver’s age

2. Driver’s experience

3. Make and model of the vehicle

4. Vehicle’s age

5. Car’s value

6. Driver’s claim history

7. Type of insurance plan and the add-on covers.

What is the Validity of a Vehicle Insurance Plan?

Ans:

A vehicle insurance plan is valid for 12 months and has to be renewed annually. In case you fail to renew your plan, a 1-month grace period is offered so that you can renew your vehicle insurance plan. This way, the status of your plan can remain active.

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