Buy Car Insurance in 30 Seconds !
Old or new, every car must be insured before you can take it out for a spin in the UAE. While buying and insuring a new car can be easy, getting an insurance for a second-hand one can be a bit confusing, especially to a newbie. There are certain factors that you need to keep in mind before buying insurance for a used car. The UAE being in the centre of car aficionado universe, the priority of finding the perfect car, whether new or used, becomes even more highlighted. Regardless of the kind of car you have, getting car insurance for used cars is going to be a much different process than getting care insurance for new cars in the UAE. So, let’s see everything that you will need to know about car insurance for used cars in the country.
There are two basic kinds of car insurance plans that you can get for any car in the UAE, new or second hand:
A third-party liability car insurance is the most basic form of car insurance and is a must-have for all car owners. It covers all third-party liabilities that arise from an accident where you, the insurance holder, are at fault. This includes third-party vehicle damages as well as third-party injuries and medical expenses. Own vehicle or injuries are not covered by a third-party car insurance plan.
A comprehensive car insurance plan covers both your damages and the third-party liabilities for an accident where you are at fault. The inclusions of a comprehensive car insurance plan include third-party liabilities for vehicle damages and injuries, own injuries and vehicle damages due to an accident, a collision, man-made disasters like vandalism, natural disasters like storms or theft. Several add-on covers can also be taken with a comprehensive cat insurance plan.
The types of car insurance you buy depends your recently bought second-hand car largely depends on the age of the car and how much you plan to drive it. If the used car you bought is fairly new, going with comprehensive insurance for used cars for a few years is a good idea. The market price of the car will still be decent and you won’t have to spend thousands of Dirhams on repairs if the car ever is in an accident. Choose to go for a comprehensive plan with minimal benefits if the used car you have bought is a practice car, will be driven a lot and could be at the potential danger of collisions.
Yes, the current insurance that the previous owner of the car has can be transferred to the new owner, aka you. But there are a few rules that you need to take care of. Only current insurances with more than 9 months remaining on the tenure can be transferred. So, if the current car insurance of the used car that you are buying has anything less than 9 months on it, it can not be transferred to the new owner. Second, not all insurance companies offer the facility of transfer. While most top car insurance companies in the UAE would let you transfer your car insurance for used cars, you should still confirm it once with the provider. If the plan turns out to be non-transferrable, the previous owner can cancel the policy and get a refund on a pro-rata basis. You can look into new options for car insurance for used cars.
If the current car insurance plan of your second-hand car is indeed eligible to be transferred, a series of steps need to be followed. Below are the things you will need to do:
Given below is the list of documents that you will need when getting the previous car insurance transferred:
Even though the insurance policy is for the car to have, the no claim bonus is earned by the insurance holder. This means that the no claim bonus stays with the owner instead of the car. In short, if there is any accumulated no claim bonus on the previous car insurance plan, you can not get it when the car insurance plan is transferred to you. The previous owner gets it. They can obtain a no claim bonus certificate from the insurance company and apply when they buy their next car insurance to get a discount on the premium. You can do the same thing if you have previously accumulated NCB from any of your previous car insurance policies.
In case, the current car insurance for the used car that you bought is non-transferrable, you will need to buy a new car insurance plan. Of course, you can buy any plan you feel like without apprehensions, however, make sure you have weighed in all the factors ideally. Following are the basic steps you will need to follow when buying car insurance for used cars:
Following are the documents you will need to buy new car insurance for used cars that you just bought:
Several small but important things should be kept in mind when you set out to buy and insure a second-hand car. Given below is a small checklist for you:
Ans. Unfortunately, you can only drive a car in the UAE when you have valid insurance in your hand. It is illegal to drive a car without proper insurance papers or proof of insurance on your person at all times.
Ans. There are no government implied fees or charges for the transfer of car insurance of used cars. However, there can be a specific fee set individually by the insurance providers. Make sure you check with your insurance company for these fees.
Ans. The no-claim bonus accumulated from the current or previous insurance plan of the car will go to the previous owner who owned the car insurance plan. Although, if you have had a car in the recent past before buying a new second-hand car, you can the no claim bonus transferred to your new car insurance policy. But you will need a transfer certificate from your previous insurance company. Obtain that and get to know the deadlines for this task as well.
Ans. The insured declared value (IDV) of a car is defined by the present market price of the vehicle. You can still choose the IDV when buying car insurance for used cars. If you choose a value much higher than the market price of the car, you will have to pay an additional premium. If it is close to the market price of the car, you will not be paying any extra premium.