Car Insurance Dubai and the UAE

Buy Car Insurance in 20 Seconds!

Average Rating / 5 (ratings )
akshay-img

Car Insurance in Dubai

Car Insurance, also known as Motor Insurance is a way to prevent financial losses in case of defilement to your vehicle due to an accident or theft. With an auto insurance policy, you are required to pay annual premiums to mitigate damage-associated costs. Car InsuranceThe Car insurance company pays all or most of the cost that’s involved in damage repair.

Your vehicle is secured against annual premiums that you pay for a car insurance policy. Car Insurance premiums are dependent on several factors like - age, driving behavior, driving experience, etc. It is mandatory to have car insurance in UAE by RTA law. Apart from the bare minimum, mandatory Car insurance in Dubai, people purchase several add-ons to ensure better safety and wider coverage.

What can usually lead to higher premiums is a poor driving record and willingness for a better, custom-tailored car insurance cover. 

Best Car Insurance Quotes

Noor Takaful
Comprehensive Plan
  • Third Party Damage Limit Upto AED 3 Million
  • Emergency Medical Expenses Upto AED 5,000
  • Riots / Strikes / MD
  • Ambulance Service
  • Valet Parking Cover
  • Fire & Theft Cover
Starting from AED 972/-
Salama
Comprehensive Plan
  • Third Party Damage Limit Upto AED 3.5 Million
  • Third Party Liability UAE & Oman
  • Damage To Your Vehicle UAE & Oman
  • Fire & Theft Cover 
  • Agency Repair 
  • Ambulance Service 
  • Loss of Personal Belongings
Starting from AED 1115/-
Axa
Third-party Liability Plan
  • Third Party Damage Limit Upto AED 3.5 Million Personal Accident Cover for Driver Optional AED 350,000
  • Personal Accident Cover for Passengers AED 200,000
  • Third-Party Property Damage AED 5,000,00
  • Third-party injury
  • Theft & fire cover
  • Damage or Loss to the insured automobile
  • No Claim Discount
Starting from AED 573/-
Watania Insurance
Comprehensive Plan
  • Third Party Damage Limit Upto AED 3 Million
  • Third Party Liability:  UAE Only
  • Emergency Medical Expenses: Upto AED 2,000
  • Agency Repair
  • Ambulance Service
  • Valet Parking Theft Cover
Starting from AED 1029/-
Tokio Marine
Comprehensive Car Insurance
  • Premium Agency Repair: Upto 5 years
  • Cover Off Road: Cover your personal belongings
  • Sensible Prices
  • Quick Service & Claims
  • Premium Agency Repair
  • Pay Online & get the policy Now
Starting from AED 1143/-

** All the discounted prices are with a maximum allowed discount on our website and exclusive of VAT   

Types of Car Insurance in the UAE

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

1. Third Party Liability Car Insurance

It is mandatory to have third-party liability insurance for every car owner in the UAE. It is the most basic form of car insurance Dubai, as it offers protection against any liability arising due to third-party bodily injuries or property damage caused 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 car insurance should be ready to meet the repair expenses arising from an accident on their own.

2. Comprehensive Car Insurance

Comprehensive car insurance protects the insured vehicle from all the damages arising out of theft or fire, and also pays out to the third party libility in case of an accident leading to damage, injury or death to a third party.

Best Car Insurance Companies in UAE in 2021

Here are some names that are known to provide impeccable car insurance services in the UAE:

  1. Salama Islamic Arab Insurance Company: Salama provides hassle-free comprehensive car insurance plans at most affordable price points.
  2. Oriental Insurance: It is one of the very well known names in the India General Insurance market. It provides reasonably priced - Comprehensive Insurance, Third-Party Liability Insurance, and Comprehensive Car Insurance in UAE
  3. Adamjee Insurance Company Limited: It is a leading GI insurance provider with its business wings expanded in the UAE market. In motor insurance it is known to offer competitive premium rates, third-party coverage, theft coverage, accidental damage coverage etc.
  4. New India Assurance: NIA has some amazing plans for its customers that cover loss against damage to car, its accessories, spare parts due to fire, accident, burglary or theft etc. Along with these benefits it offer some amazing add-ons like car rentals, off-road cover, windscreen damage cover, agency repair etc. 
  5. Union Insurance: It has some amazing plans to keep your car protected at very reasonable rates. A team of incredible customer support representatives and customizable plans make Union Insurance a favourite of all.
  6. Watania Insurance: Watania’s discount offers are irresistible. It has amazing Comprehensive Car Insurance Policies and Third Party Liability Car Insurance that are designed to suit customer specific needs. The best part is that it has a natural calamity damage cover to safeguard your car during riots, civil disturbance, floods, earthquakes and similar convulsions of nature.

Benefits of having Car Insurance

Here are the benefits of having car insurance:

  • Protection from loss of car or damage to your vehicle
  • Unlimited liability for third party death or injury claims
  • Indemnity for third-party property damage
  • Protection from financial liability

compare and buy car insurance

Factors Affecting the Car Insurance Price in Dubai

Price of a car insurance policy may vary greatly depending upon a host of factors. Here we’re listing a few of them to give you a sneak peak into what might fetch additional costing to an auto insurance plan:   

1. Value of the Car to be Insured

One of the main factors that can contribute to car insurance UAE prices is value of the car. All the cars that have a market value of above AED 300,000 fall under a category bracket of 2.75% premium rate. For cars costing between AED 1,00,000 to AED 300,000, there’s a premium rate of 3% of the real car value. Any four-wheeler below AED 1,00,000, has a premium rate of approx 3.25% of the value of the car. These are the basic premium rates applicable for buying car insurance in Dubai.

2. Age of the Driver

Another important factor that helps in determining car insurance prices is the driver’s age. For drivers aged 23-24, it’s approximately 25% of the car insurance premiums plus the initial cost. If you fall in an age bracket of 25-30 years, then the average cost is approx 15% of auto insurance premiums plus original cost. Drivers aged 30-60 years, can avail a discount of 10% on the premiums.

Statistically, young drivers are more prone risky driving, hence charged premiums.

3. Type of Car Insurance Policy

Car Insurance Dubai price is dependant on the kind of coverage that’s opted for. People opting for a third-party liability car insurance pay lower insurance premiums in comparison to those with comprehensive car insurance policy. That’s because third party car insurance Dubai price is lower in the UAE.

4. Type of Vehicle

Type of vehicle is yet another important factor that can add to car insurance UAE price. With a basic car you pay lower premiums. However, high-end cars or SUV, attract a higher car insurance. The reason being, higher maintenance for high-end cars. 

How to Find the Best Car Insurance Quotes in UAE?

Here is a list of tips that will help you in choosing a car insurance plan that provides good coverage at affordable rates. You can use these tips to get best car insurance in UAE:

1. Begin with Understanding Your Insurance Needs & Expectations

When you’re clear on what you’re looking for, it becomes easier for you to analyse whether a plan fulfils your car insurance expectations or not.

2. Go For An Insurance Provider With Good Reputation

Keep a check on the background of the chosen insurance provider. Anyone with good reputation is likely more professional and known for timely, hassle-free claim settlements.

3. Always Compare Plans and Prices 

One plan doesn’t fit all when it comes to buying a car insurance. Instead of opting for the first plan that you come across, it’s wise to compare car insurance plans in Dubai to get a fair idea of what are your best available options. By comparing car insurance in Dubai online, a quick and informed insurance decision can be made.

4. Evaluate the Insurance Coverage 

It is important to analyse the coverage offered by a provider and make sure it is at per your expectations. Refrain from buying inadequate insurance coverage that might lead to regrets in future.

5. Claim Settlement Ratio & Add on Covers

It’s important to settle with an insurance provider that has a high claim settlement ratio. This in a way guarantees earnestness in the services that are being offered by the insurance provider. Add on covers on the other hand ensure wider coverage to the vehicle and the driver to ensure maximum safety. 

Renew your car insurance

How to Buy Car Insurance Policies Online in UAE?

With so many insurance providers moving to online platforms, it has now become easier than ever to compare car insurance policies online and buy one that suits your needs. An online purchase is convenient, efficient and quick. Here’s how you can compare plans online and buy them too:

Online Marketplace: It’s not practically possible to visit each insurance provider’s brick and mortar store. However, this is possible with an online platform that has all the car insurance plans listed at one dedicated platform. Here, you can select a few plans that are closely aligned to your requirements and weigh one against another to pick the best one.

Best Car Insurance Deals are Available Online: It’s evident that by comparing you can get the best of your car insurance investment. There are several discount that are often running online, so you might has well get a further discount on your deal.

Chose the Plan Online: Choosing to buy car insurance online and get rid of the extensive paperwork that can keep you feeling confused for hours at a stretch. Once you’ve selected the plan, you can move towards the payment gateway and make payments to receive your policy.

Online platforms are know for transparency as their benefits, rewards, and pricing can be viewed and compared online. This platform also eliminates the risk of fraudulent activities by bypassing the need to talk to talk to an agent.

Apart from buying a car insurance policy online in Dubai, you can also opt for easy renewal once the term expires. Policyholders can pay digitally and renew their policies instantly without the hassles of visiting a provider’s officer.

What Do Car Insurance Policies Cover?

At the time of issuing a motor insurance policy, there are some of the common services that are provided by auto insurance companies in UAE. Let’s take a look at the inclusions here:

  1. Towing assistance if the vehicle breaks down or is met with an accident.
  2. Extraction and removal of the vehicle through crane.
  3. Flat or leaking tyre assistance without labour charges.
  4. Assistance to jump-start the engine in case of a breakdown.
  5. Unlocking ignition key 

Additional Covers Provided With Auto Insurance in Dubai UAE

There are a few riders that can be bought along the basic insurance plan to enhance the scope of coverage. Here are a few riders that might be worthy add-ons to your existent plan.

  1. Personal Accident Cover - The driver and passengers can avail of the benefit in case any of them dies or sustains injury due to an accident.
  2. Off-road Coverage - Ensures coverage for off-road mishaps
  3. Windscreen Damage Cover
  4. Agency Repairs
  5. Car Hire Cover or Car Cash Benefit - With this one, insurance provider compensates for hiring a spare vehicle. A few motor insurance companies in Dubai offer courtesy cash while the insured vehicle is getting repaired.
  6. 24 Hours Roadside Assistance
  7. Coverage to Personal Belongings or Emergency Medical Expenses
  8. Expanded Third-Party Cover
  9. Free Pick-Up and Drop-Off to and from Airports
  10. Natural Calamity Cover
  11. Grace Renewal Period
  12. GCC Cover/Oman Cover for people who often drive to to neighbouring countries.

What’s Not Covered In a Car Insurance Policy?

Car Insurance Policies in Dubai will not cover for losses or stand nullified if you are:

  • Driving with an Invalid License or Under the Influence of Intoxicants .
  • Overloading.
  • Providing Misleading Information or Intentional Damage
  • Unethical Use of the Insured Vehicle
  • Any Claims Filed After 3 Years of the accident.

What is No Claim Bonus in Car Insurance?

No Claim Bonus is a discount offered to a policyholder for not claiming the insurance policy during an active term. It can be availed of for while renewing the vehicle insurance policy next year. Some of the benefits of NCB are:

  • No claim discount benefit is transferable at the time of renewal or porting
  • Yo need - ‘No Claim Certificate’ from the insurance provider to transfer the accrued NCB benefit
  • No claim discount is one of the most reliable ways of reducing car insurance premiums in case of comprehensive car insurance
  • No claim discount of up to 20% can be further utilized as a discount in premiums for the subsequent year
  • No claim discount may vary for different car insurance companies in Dubai or other Emirates

How to Find Cheap Car Insurance in UAE?

With so many options available online, it has become easier to browse through a list of best car insurance plans in UAE and opt for one that best suits your needs. To bag yourself a cheap insurance plan, all you have to is:

  1. Visit the insurance provider’s website or go to a car insurance marketplace like policybazaar.ae
  2. Fill out an online form with all the specifications.
  3. You’ll be presented with a list of plans that are designed to cater to a variety of needs and budgets.
  4. Compare and choose a plan that best fits your requirements.
  5. Submit relevant documents and make a payment at the end. 

How to Get Cheap Car Insurance in UAE?

To ensure the right car insurance UAE, the online comparison is a must. The details that are required to get a quote include:

  • Car details
  • Details of driving license
  • Record of any previous car insurance claim
  • Name & license details of other drivers added in the policy
  • Details of No Claim Bonus

Save on buy car insurance

Documents Required To Purchase or Renew Your Car Insurance

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

  • Driving License
  • Mulkiya
  • Emirates ID
  • A few additional documents that may vary from provider to providers 

What to do After a Car Accident in the UAE?

In recent years, there has been an exponential increase in road accidents in the UAE. There are sever reasons behind such mishaps and that is precisely why car owners should know all about car insurance claim procedure in UAE. Keeping yourself educated avoids unnecessary hassles of filing wrong claim and delayed reimbursements or rejection. Having a clear idea of what’s to be done after a car accident is always a bonus. Here’s a quick guide of steps that need to be followed:

  1. Call the Ambulance: In case of a medical emergency, first call the ambulance and make sure that the injured receive primary care. 
  2. Lodge Police Complaint: Get in touch with the police and report the matter. This is an important step to be followed to get a car insurance claim. 
  3. Inform Your Insurance Provider: You insurance provider needs to be notified about the accident. 
  4. Drive the Vehicle to Workshop: Drive your car to an to an insurance company partnered workshop. Wait for help to arrive, if the vehicle can’t be driven. 
  5. Follow-up with your Provider: Keep a track of your claim processing and vehicle service by staying in touch with the insurance representative.

How to File a Claim for Car Insurance in UAE?

If the right claim filing procedure isn't followed, your claim might get rejected. Here are a few simple steps to help you in filing your car insurance claim in Dubai, UAE:

Step 1 - Inform the Insurance Provider ASAP

Contact your car insurance provider as soon as possible to ensure a fast and hassle-free claim settlement in the UAE.

Step 2 - Cooperate and Provide Complete Information

Notify your insurance provider with complete information to support your claim like your full name, policy number, policy duration, date & time of the accident, a copy of the driver's license & license plate number of all the parties involved, along with names & contact details of all those involved.

Step 3 - File a Police Report

In case of an accidental or theft related claim, visit the nearest police station to file a complaint. Make sure to get a copy of your complaint as some car insurance providers ask for it.

Step 4 - Get the Vehicle Supervised

Once you have informed your auto insurance provider, a surveyor will be assigned  to assess your case. The surveyor will evaluate your case and will inspect and examine your vehicle so that your claim can be duly processed.

Step 5 - Final Settlement

Once the insurer receives surveyor’s report on the damage and cost of repair, your case will be resolved in compliance to the plans you opted for. In case of cashless claim, the expenses are directly paid to the network garage.

Why Should You Buy Car Insurance Through Policybazaar.ae?

Policybazaar.ae is committed to offering an extensive range of insurance products to cater to the needs of a variety of vehicle owners. You can buy cheap car insurance in UAE by comparing various plans at Policybazaar.ae. Apart from this we allow you to easily navigate through a platform that lists some of the best insurance plans online, all in one place. Here is a list of reasons for you to buy your health insurance policy from policybazaar UAE:

  • Amazing offers on car insurance Dubai online.
  • You can compare car insurance plans and their features offered by various car insurance UAE providers and selecting the best plans.
  • You have access to some of the most affordable and suitable car insurance policies.
  • We has a team of insurance advisers to provide customer assistance through email and phone.
  • Policybazaar.ae has provision of after-sales service to offer unparalleled sales assistance.

Car Insurance FAQ's

Q: 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.

Q: 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 car insurance plan and the add-on covers.
Q: 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.

Q: 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.

Q: Is it Necessary to Buy Car Insurance in UAE?

Ans: By Law we need to have car insurance to drive a vehicle legally in UAE.

Q: 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 car 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.
Q: 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.

Q: 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.

Q: 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.

Q: 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.