Commercial Car Insurance in the UAE

What is Commercial Car Insurance?

Commercial car insurance is a financial liability coverage for vehicles used for commercial purposes. It protects them against damage due to accidents. Commercial vehicle insurance in UAE covers several types of automobiles.

Much like a private car insurance plan, commercial car insurance in the UAE is a type of general insurance plan that ensures safety from any financial liability and setbacks in case of a mishap or accident. Commercial car insurance or commercial vehicle insurance can be bought for several types of motor vehicles and not just cars. It offers protection against many things which are often excluded from private car insurance plans. From company cars to loading-trucks, all kinds of business and commercial vehicles can be insured using this type of car insurance plan. 

Benefits of Commercial Car Insurance

Here are the major benefits of commercial motor insurance in UAE —

• Better and More Comprehensive Coverage: Where personal car insurance coverage will not pay for any damages caused when the vehicle was being used for commercial purposes, commercial car insurance plans work the opposite way. You will retain the insurance benefits even when using the commercial car for a personal reason. 
• Group Coverage for All Vehicles: Also known as fleet insurance, a single car insurance plan can be used to insure all your commercial vehicles at once. A single commercial car insurance policy covers all your business vehicles and makes sure that you are protected from any huge financial setback. 
• Customisable: Commercial car insurance plans are highly customizable. You can buy them for one vehicle as well as a fleet containing any more than 3 vehicles. On top of that, if your business deal with more than one type of vehicle, you can group them separately and customise the cover as per their unique needs. 
• Easy Renewals: Since you will only be handling a single policy for all your commercial cars, you can easily get renewal for all the vehicles in one go. Even if you only have to renew for one commercial vehicle that you deal with, such as a food truck, the renewal process is pretty simple. 

Types of Vehicles Covered by Commercial Car Insurance

Unlike personal car insurance plans, a commercial vehicle insurance plan can be used to protect several kinds of vehicles. Given below is a complete list of such vehicles:

• All types of cars used as taxis and cabs
• Delivery trucks and cargo vans
• Motorbikes and other two-wheelers used for delivery purposes
• Forklifts and other types of construction vehicles 
• Food trucks and vans 
• Utility trucks
• Company cars
• Box trucks 
• Towing trucks and pick-up trucks 

Types of  Commercial Car Insurance Plans

There are 2 types of commercial car insurance in Dubai – third-party and comprehensive. Keep on reading to know more about these types.

• Third-Party Liability Commercial Car Insurance: Third party commercial motor insurance covers damages caused to third-party properties or bodily injuries that are the fault of your commercial vehicle.
• Comprehensive Commercial Car Insurance: Comprehensive business vehicle insurance in Dubai provides extensive coverage. It covers against damage to the insured vehicle and third-party liabilities and damages. The coverage is offered against accidents, theft, fire, and more.

Factors That Influence the Cost of Corporate Car Insurance in UAE

Find below the key factors that influence the cost of commercial car insurance in UAE–

• Type of Insurance – Understand that comprehensive insurance is more expensive than third-party liability commercial car insurance in UAE. So, choose the type of insurance you want based on your needs. 
• Vehicle Type – Insuring a small car or cab can be more affordable than insuring the delivery trucks.

Eligibility Criteria to Buy Commercial Car Insurance in the UAE 

Any individual or business who owns the vehicle(s) which are used for commercial use in any way. You must be a citizen or resident of the UAE with valid documented proof. Some insurance companies may have an upper or lower limit on the size of the fleet as well. Apart from that, most commercial vehicles are eligible to get insured in the UAE. 

Also Read Car Insurance with Passenger Cover – Who and What is Covered?

Documents Required to Buy Commercial Car Insurance in the UAE 

• Registration number and certificate of the car
• Miscellaneous details like chassis number, engine number etc. 
• Policy number of your previous commercial car insurance plan (if applicable)
• Driving license of the owner-driver or the employers
• Trade license of the company if you are buying insurance for a business 
• Valid passport for the residents
• Valid resident’s visa page for UAE residents
• Emirates ID for both UAE citizens and the residents

How to Claim Commercial Car Insurance?

Submitting a claim for business auto insurance is similar to the process you follow when submitting a claim for personal auto insurance. The only difference that may come up is when you have fleet insurance instead of single commercial car insurance. In either of the cases, you only need to identify the vehicle, the policy documents, the police report, the license of the driver, and the details of the third party involved in the accident. Follow the below-given steps to submit a commercial vehicle insurance claim and get them settled successfully:

• Inform the insurance company about the loss and damages and the reasons.
• Obtain the official police report of the accident if a third party was involved. 
• Submit the claim request with all the necessary documents. 
• Get your car transferred to one of the garages recommended by your insurance provider.
• An inspector will be assigned to check the damages on the vehicle and file a report for approval. 
• Once you get the approval, the garage will begin the repairs for the car. 

Read How to Find the Best Car Rental Services in Abu Dhabi?

Commercial Car Insurance UAE FAQs