Multi-Car Insurance in the UAE

By Laxita Gautam
  | Published: 26 October 2021

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A decent size family in the UAE usually has multiple cars in the house and all of them are used regularly by different drivers and maintaining multiple cars cost you a lot. Add the cost of insurance to that and you may have a long list of expenses coming your way in the annual budget calculation. Insurance providers in the UAE offer multi-car insurance plans to save you from paying a fortune on ensuring every car individually. Let’s get into the details to understand this type of car insurance better.  

What is Multi-Car Insurance?

A multi-car insurance policy is a single policy that covers more than one vehicle in a singular coverage. The number of vehicles covered by a multi-car insurance plan can differ as per the provider policies. Just like bundle insurance plans, a multi-car insurance policy earns you a hefty discount on the premium since you will be insuring multiple cars with the same car insurance company. Discount is often offered for each car that you add to the policy. The role of a multi-car insurance policy is exactly the same as that of a standard single car insurance plan. 

What are the Coverage Options?

You may get two coverage options when it comes to finding the best multi-car insurance plans in the UAE:

  • Third-Party Liability: It is to protect you from all kinds of third-party claims in case you cause an accident. This plan covers all the legal third-party liabilities including the repair expenses for vehicular damages and treatment expenses for the injuries sustained in an accident. It will do not cover expenses for any damages caused to own a vehicle in the same accident though. 
  • Comprehensive Coverage: A comprehensive car insurance coverage can be seen as combined cover for third-party losses as well as own damages and total loss. Along with handling the third-party claims, a comprehensive plan will also cover repair expenses for damages to own vehicle, injuries of the driver in an accident, damages caused by fire, natural disasters and man-made disasters and total loss of the vehicle – from theft or damages. It is complete protection for the car, the driver and the passengers. 

How Do Multi-Car Insurance Plans Work?

It is easy to understand how a multi-car insurance policy works. There is one plan that you choose for the cars – third-party or comprehensive – and register vehicles under it. These cars that you register can all be owned by you or your family members, either of the two works. All the included cars receive the same level of benefits. The premium of a multi-car insurance policy is decided as per the driving history and claim records of all the included drivers as well as the condition of the cars. This means that a good driving record from even one of all the registered drivers can bring the premium amount lower for all the registered cars and vice versa. The same goes with the car’s history of insurance claims and the condition. So, your multi-car insurance plan gets influenced by every car included in the set. If available with the providers, there is another multi-car insurance arrangement you can go for – the linked policy. 

Also Read All You Need to Know About Imported Car Insurance

What Is a Linked Policy?

The general idea is that a multi-car insurance plan is a single plan that covers all your registered cars under a single coverage. But that means that all the cars included in the plan would have the exact same insurance benefits – whether comprehensive or third-party liability. A linked policy allows you to choose different plans for each car that you want to insurance and different renewal dates if you like. This arrangement is still categorised as a multi-car insurance policy since all cars are linked and insured by the same provider. A linked policy gives you much greater freedom of choosing insurance coverage for your cars however the discounts may vary from the single policy multi-car insurance. 

Inclusions of Multi-Car Insurance Plans

Cars added on a multi-car insurance plan share a few benefits and have a few others as independent coverages. Given below is a complete breakdown of the inclusions and how they are divided among all the vehicles added:

Shared Coverage Includes:

  • Third-Party Liability 
  • Underinsured or uninsured motorists cover
  • Rental car reimbursement 

Individual Coverage for Each Included Car:

  • Comprehensive cover (own damage, theft, natural disaster and man-made disaster cover)
  • Collison protection benefit
  • Emergency road assistance 

Available Add-Ons for Multi-Car Insurance Plans

  • Personal accident cover
  • Engine breakdown cover
  • Windscreen cover 
  • Geographical extension cover 
  • No depreciation cover
  • NCB retention cover 
  • Replacement keys benefit
  • Passenger accident cover

Who Can Get Multi-Car Insurance Policy?

Different insurance providers have a different set of rules to decide who can get a multi-car insurance policy. As a general rule, family members with the same registered address can get multi-car insurance for their vehicles that are bought using the same address. Apart from that, some providers also allow people living within the same accommodation to buy a multi-car insurance plan even if they are not family. This includes folks living with their friends in a shared apartment or home. 

Factors Affecting Multi-Car Insurance Prices

Several factors affect multi-car insurance quotes and prices in the UAE. Apart from the generally applicable factors, there are a few different ways your multi-car insurance prices can get affected as well. Given below are the top ones:

  • Driving Record of Each Registered Driver: A standard car insurance plan only looks at the considered policyholder’s and added drivers’ driving record. However, a multi-car insurance plan considers the driving record of all named drivers as well as the policyholders, if there are more than one. This means that traffic violation on part of one driver can increase the overall multi-car insurance quotes for every car insured. 
  • Age of the Cars and the Drivers: The same logic applies to the age of the drivers, policyholders and cars included in the multi-car insurance plans. People younger than 25 years of age are considered to be high-risk drivers by insurance companies. Older cars are more susceptible to a breakdown which makes them high-risk insurance. This means that even if you have one 18-25-year-old driver or a 5-6 years old car included in the policy, the multi-car insurance quote will increase for every car. 
  • Modifications of the Cars: Car modifications are not welcomed by car insurance companies, except for the practical ones like adding an anti-stealing device. Aesthetic or performance-enhancing modifications increase the price of multi-car insurance quotes and that applies to all cars as a bundle in multi-car insurance policies. One modified car in the plan will make it more expensive for all cars. 

Are Multi-Car Insurance Plans Cheaper?

As a basic comparison, yes, multi-car insurance plans are cheaper when it comes to buying car insurance for multiple cars. Since you get a discount when buying a multi-car insurance policy, it ends up being lower than the total cost of insuring every car you or your family own individually. However, the factors that influence car insurance prices can dramatically change this scenario. The overall premium of the plan, which is the same for every car insured in the policy, can increase several folds even if one of the drivers has a bad driving history, one of the cars is in poor condition, is an expensive model or has aesthetic modifications. 

Is the Renewal Process Different for Multi-Car Insurance?

The renewal process for multi-car insurance plans is pretty much the same as individual car insurance plans. You can renew the policy online by visiting an aggregators’ websites or simply by logging on to a providers’ portal. You can also renew your insurance offline by visiting one of the branches. The renewal date for each car included in the policy can either be the same or different. It probably will be the same in case you have a single plan arrangement for all cars and all of them were insured on the exact same day. Linked policy arrangements can go ahead and get different dates for each car included in the policy. Some providers offer their policyholders to choose different renewal dates for each car even in a single plan multi-car insurance arrangement. 

How Does No Claim Bonus Works Here?

No claim bonus is carried out by the policyholder instead of the vehicle itself. This means that if one of the policyholders of the multi-car insurance policy crashes their car and submit a claim, your NCB will still be safe. However, if a named driver makes a claim, the policyholder’s NCB will get affected. For example, you have two cars in a multi-car insurance plan. You are the policyholder for one car and your spouse is the policyholder for the other one. Your son is a named driver for both these cars. If he crashed your spouse’s car, their NCB will get affected while yours will stay intact. It is best to get a crystal-clear idea of this particular condition before you invest in the multi-car insurance plan. 

How Can You Add New Cars in Multi-Car Insurance Policy?

The process of adding new cars is quite straightforward. You will need a duly filled application form for adding new cars to the policy. Following is the information you will need to add a new car:

  • Car’s model, make and year of manufacturing 
  • Car’s unique identification number
  • The license plate number of the car
  • Policy number of the previous plan, (if any)
  • Estimated mileage of the car 
  • The policyholder and driver’s details (driving license number, etc.)

What If Other Cars to Be Added Already Have a Valid Insurance Plan?

Let’s understand the process of adding vehicles with different renewal dates using an example. A, B, C and D are four members of a family and they all drive separate cars with individual insurance plans. A’s car insurance plan is due for renewal soon and she decides to switch to a multi-car insurance plan for the whole family. A fills out the form for the plan with the details of all four cars to be added. The car insurance plan for A will start as soon as her previous plan expires. The renewal date for B, C and D’s car insurance plans are different with a gap of two months in each of them. They join the multi-car insurance plan when their respective plan ends and get a pro-rated premium depending on the time they spend on the new policy. For example, B joins 2 months after A and pays the premium for only 10 months. 

Which is the Best Multi-Car Insurance Policy for Me?

A single plan multi-car insurance policy works well for if there are only one or two registered drivers for all the insured cars. The risk of getting a high premium is very low in this situation. It also works well if you need the same kind of coverage for all the cars. If you want different levels of coverage for each car, it is best to get a linked multi-car insurance policy. You can choose different coverage levels for each car and get different renewal dates as well. 

Multi-Car Insurance FAQs

Is the claim process different for multi-car insurance?

Ans: No, the claim process for multi-car insurance policies is the same as individual car insurance plans. Since each driver is listed and treated as a separate entity, claims can be made individually as well.  

How many cars can be insured under one multi-car insurance policy?

Ans: This factor is completely dependent on the insurance provider. Most providers allow you to add 4-6 cars on a multi-car insurance plan, some can let you have up to 10 cars added to one plan. Confirm the terms with the provider you choose beforehand to get a fair idea. 

How can I find the best multi-car insurance plan in the UAE?

Ans: An ideal way to find the best multi-car insurance plan for your cars is by comparing your options. Obtain a few multi-car insurance quotes and then find the one that suits you best. Do not hesitate to switch providers if necessary and choose the most cost-effective option. 

Can I drive other cars included in the policy?

Ans: Yes, you can drive other cars included in a multi-car insurance plan as a designated driver. 

Can my spouse drive my car and still get insurance benefits?

Ans: If your spouse has been added to the insurance policy as an official driver of the car, then they can drive it and still get the benefits of the insurance plan. 

Can I insure more than one car under my name in a multi-car insurance plan?

Ans: Yes, you can add one or more cars under your name when taking a multi-car insurance plan. You are free to assign yourself as the main driver of all or some of the cars that you add or have multiple drivers. 

Can I add other kinds of vehicles to a multi-car insurance policy?

Ans: No, other types of vehicles such as two-wheelers and vans cannot be added to a multi-car insurance plan.

Laxita Gautam
Laxita Gautam0 Post

Senior Content Writer | She functions on classic British fiction, Japanese manga, and strong americanos. Laxita is tailor-made to create engaging, interactive pieces that offer simplified insights into complex subjects.