Motor Insurance in Dubai: What All Should You Know?

Motor Insurance in Dubai: What All Should You Know?
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Owning a vehicle is no longer just a luxury. It has become a necessity of life, especially in places like Dubai where traveling from one place to another consumes a major part of your time.

With that thought in mind,

There are a few things that you have to do in order to ride your vehicle down the Sheikh Zayed Road. Amongst these things, the most important is purchasing car insurance in Dubai.

Whether you have bought a new car or a pre-owned one, all car owners have to get their vehicle insured as per the law. The insurance should be taken from a trusted insurance provider before the car is registered.

Getting an online car insurance Dubai could be a confusing condition for a lot of people. This is because there are various insurance providers, banks, and brokers that offer auto insurance. It is very important to understand the different policies and their providers properly in order to make sure you purchase the motor insurance which is the most suitable for you.

Here are some points that outline all that you should know about car insurance in Dubai.

Deciding on the Kind of Car Insurance You Require

There are two types of car insurance available in Dubai- comprehensive car insurance and third-party car insurance.

  1. Comprehensive Car Insurance: This kind of motor insurance provides coverage for you as well as the other car that is involved in case an accident occurs. Since it offers wider coverage, this type of insurance usually tends to be expensive. It does not just cover your car against theft, accident, fire, and other malicious acts, but also against personal accidents, in a situation where the passengers or drivers get injured in a collision & are in need of medical treatment.
  2. Third-party Liability Car Insurance: This car insurance covers just the other vehicle and its passengers if an accident takes place. Hence, if you obtain third-party insurance, you will have to pay less insurance premium. However, you will have to bear the damage caused to your own vehicle during the accident. If you have bought a car through a loan, many banks in Dubai will not let you purchase third-party liability car insurance in Dubai. You will then have to buy comprehensive insurance.

Gathering all the Documents for Starting the Process

You need to submit the following documents with the car insurance provider as driving experience and identity proof.

  1. A copy of the visa page and passport photo page
  2. A copy of the driving license
  3. A copy of the car registration card (in case of a new car, you will have to submit the pro-forma invoice copy)

Understanding How to Calculate the Insurance Premium

Premiums on car insurance in Dubai are calculated after you consider the year, make, and the model of the vehicle, size of the engine, history of claims, and the driver’s risk profile.

The table mentioned below shows a few of the other factors, which may affect the premium on your insurance. For instance, a driver having less experience might end up paying a higher premium on his insurance as compared to the drivers who are older and more experienced.

Factors

Effect on the Insurance Premium

Car cost is towards the higher end

High

New vehicle having high features for safety

Low

Age of the driver is below 30 years

High

GCC Coverage included

High

Driver has low experience in driving

High

Coverage for Breakdown

High

Off-road Coverage

High

Claiming the Insurance Bonus

In case you already have a car insurance company, and you are switching insurance provider for your present vehicle you must contact your existing insurance company for getting a “No Claims” certificate. When you present this certificate to the new car insurance provider for getting an online car insurance Dubai, you may get a discount on the annual premium on your insurance.

Checking Whether You have an Off-Road Travel Insurance or Not

Usually, car insurance providers in Dubai only covers the accidents that take place on the streets. However, Dubai, being a paradise for adventurers, off-road traveling such as wadi bashing and dune bashing is pretty common. In case you get involved in these activities, ensure that your insurance provides coverage for road travel also.

Having Knowledge of the Emergency Services

If you end up in an emergency while you are on the road such as a flat tire, or running out of fuel, you can call on the emergency contact number that is mentioned on your new insurance card for urgent roadside assistance. But, some insurance providers do not offer round the clock road-side assistance hotline. Therefore, you should check this with your provider before you sign up.

The Parting Words!

Since there are a lot of brokers and companies offering various car insurance policies, it is recommended that you compare them before settling on the one for your precious car.

Dubai being a hub for exotic and high-end cars, it is important that you get suitable car insurance in Dubai for your supercar.

The process of selecting the ideal policy can be tedious at times. However, due to this, you should not end up choosing any insurance plan you stumble upon. First of all, understand the car insurance basics, then the various legal clauses, as well as optional coverages. Read the details mentioned above for more knowledge on motor insurance in the UAE.

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