Buy Car Insurance in 30 Seconds !
The quest to find the best car insurance coverage for you can be a bit lengthy and may require some thorough research but in the end, it is all worth it. Several factors plays very important role when you are choosing your car insurance and one of them includes choosing the type of insurance cover. Insurance companies in UAE offer two basic kinds of vehicle insurances – comprehensive car insurance and third-party insurance. Both these insurance types have their individual benefits but they also have several differences. As an aware customer, it is important that you have a basic understanding of both.
A comprehensive car insurance plan is meant to provide full coverage to both the insured and the third party in case of an accident. From damages incurred by the vehicles to medical bills of the third party and the insured, almost everything is covered by a comprehensive car insurance policy, hence the name. On top of accidental insurance cover, comprehensive car insurance also covers theft, complete loss of the vehicle, fire, natural disasters, vandalism, civil disturbances like riots, and some add-on services like engine cover, accessories cover, zero depreciation, etc.
Although car insurance and vehicle insurance is mandated by law in the UAE, it does not make comprehensive can insurance a compulsion, However, being the most thorough insurance available out there, comprehensive insurance is often recommended and preferred by most vehicle owners out there.
To understand the coverage umbrella of a comprehensive car insurance plan better, let us see an example. Say you have parked your car out in a street. A tornado happens to hit overnight and the raging rains happen to destroy the car in the process. Even when it is nobody’s fault that the car has been destroyed and requires extensive repairs to be of use again, the insurance company will cover the full cost of the damaged car, minus the deductible to be paid by the insured.
Another example can be an accident. You were driving and your car collided with another and damages are incurred by both the vehicles. Even if you happen to be at fault for the accident, your insurance company will cover all costs of damage repairs and medical bills for both you and the third party if they make a claim.
Third-party car insurance will offer full coverage in the event of liability to a third party for the damages caused by your vehicle due to your fault. It is mandatory to have at least third-party insurance in the UAE for all cars. Third-party liability insurance would cover any damages incurred by the vehicles of the third party as well as their own medical bills in case they have sustained injuries. One thing to note here is that your own car is not covered for damage under this type of insurance plan and neither are your own injuries.
Let us see an example to get a better understanding of third-party coverage. You are driving on a highway and happen to meet an accident while overtaking. Your car as well as the car you collided with have suffered damages along. You and the other driver are also injured. You being at fault, your insurance company will cover for the damages caused to the third-party vehicle and injuries caused to the third-party itself. However, the damages caused to your vehicle will not be covered and neither will your own medical bill.
Another example here can be natural disasters, theft, and fire. If your car happens to be damaged during a natural disaster or a man-made disaster like riots, terrorism attacks, etc. or gets stolen, the insurance company will not cover for the loss of your car or the damages.
Third-Party Car Insurance
Comprehensive Car Insurance
|The most basic and mandatory car insurance plan that covers damages incurred by third-party vehicles as well as person due to an accident, when the insured is at fault||An all-around cover that insures everything from third-party damages, your own damages due to an accident, and other factors like natural disasters and theft.|
|Third-party vehicle and person||Third-party vehicles, person, your own car damages and medical bills, damages due to man-made and natural disasters, thefts, and complete loss of the vehicle.|
|Protects you from all kinds of legal liabilities in case of an accident||Protects you from legal liabilities and covers your vehicle from any kind of damage – accidental or otherwise|
|No coverage for your own car||Can be a little expensive due to extensive coverage|
|Not available||Can be customised with a number of add-ons|
|Cheaper in comparison to comprehensive insurance||Higher than any other type of car insurance|
It is better to go with comprehensive coverage if you have a brand-new, high-end car, straight out of the showroom. The coverage will be extensive and you will not have to bear the cost of repairs and damages yourself. The market value of a new car is high so it happens to get stolen, you will not incur any huge loss. Combine it with a zero-depreciation cover and you will have an ideal deal on your hands. It is easy to switch policies when the time for renewal comes so when you start to feel like the price of the premium is coming out more than the value of the car altogether, you can simply switch to another type of mandatory insurance.
Legally Appropriate: A comprehensive insurance plan is not legally mandated like third-party insurance but it is more than sufficient to replace the mandated insurance since it covers third-party liability insurance as a part of it.
Complete Damage and Loss Cover: A comprehensive insurance would cover everything from accidental damages to yours and third-party vehicle to damages by natural disasters, theft, loss, etc. Combine some add-ons and even your car accessories will be covered by the plan. You will basically have complete coverage for your car with comprehensive car insurance.
Unique Add-On Covers: With options like extended covers for passengers and accessories, no claim bonus protection cover, and zero-depreciation cover, comprehensive car insurance come with unique and out-of-the-world customisation options for the insured.
Q1. Why is buying comprehensive car insurance a smarter choice?
Ans. A comprehensive cover will give your vehicle all-round protection against all unforeseen accidents and calamities. The add-on services can even help in claiming the original value of the vehicle at the time of total loss or theft of the car. In short, a comprehensive plan is fool-proof protection for your vehicle against all damages and liabilities that come your way.
Q2. Can I switch from a third-party policy to a comprehensive policy on renewal?
Ans. Yes, you can easily switch to comprehensive car insurance from a third-party insurance plan upon renewal. The process is pretty much the same as buying a new policy from your provider too. Just locate the application form on the website of the provider and fill up the necessary details to start the process.
Q3. Why is comprehensive car insurance more expensive than third-party policy?
Ans. Simply because of the benefits that it offers. Comprehensive insurance covers your vehicle in event of damages caused by almost any means including accidents (insured and third party both), theft, loss, man-made disasters, etc. Since the risk is higher for the insurer in the case of comprehensive cover, it is more expensive than the third party which covers only out of all the factors that comprehensive plans cover.
Q4. What are the best add-on covers for a comprehensive car insurance policy?
Ans. Following add-ons can be considered when buying a comprehensive car insurance cover: