A Gist of Car Insurance in Dubai

Buying a car is no more luxury these days, especially in cities like Dubai. One of the seven emirates, Dubai is a global business hub, which represents the world’s top conglomerates. Though, commuting is a huge concern in the traffic-packed roads in Dubai. Given that, you should aware of a few things before plying your vehicle on the roads. One such thing is purchasing car insurance in Dubai.

In Dubai, whether it is a second-hand car or brand new car- the vehicle owners need to get their cars insured with a trusted insurance brand. In this regard, the below tips will help you zeroing on right car insurance Dubai.

Why Do You Need Car Insurance?

Simply put, it offers a financial shield to the vehicle owner in case of any loss or damage to the insured vehicle. It pays off the liability expenses arising out of third-party damage, injury or death. In case of any medical contingency, it acts as a saviour that covers the insured for permanent disability.

Are You Getting Confused?

With a plenty of insurance providers offering different types of insurance plans, getting right car insurance in Dubai can be a perplexing situation. That’s why you need to understand the policies available in the market of the UAE. First, analyse your insurance needs and decide on the coverage you want. Look for the plans offered by various providers that fulfil your requirements. To do so, you can take help from various online aggregators that compare various Dubai insurance policies for you. Online comparison aids you in landing on a fair deal as well.

Decide On the Type of Car Insurance You Require

Without knowing the requirement of insurance or types of car insurance available in Dubai, you can’t opt for a right cover. The insurance providers in Dubai offer the following car insurance policies to protect your prized possession-

Third Party Liability Policy:

This is the most basic cover, which is mandatory to buy in Dubai as per the UAE law. This policy offers the complete protection to the insured against any third-party liability arising out of injury, damage or death due to an accident. However, this policy doesn’t cover the insured vehicle. This cover comes with an economical rate and the premiums are comparatively less.

Comprehensive Basic Policy:

This policy compensates the expenses arising out of third-party liability; own damage, damages due to man-made calamities like theft, accidental damages etc.

Comprehensive Policy with Add-Ons:

Apart from covering the insured vehicle in the aforementioned situations, this policy allows the insured to extend the policy coverage at an additional cost. This policy offers the coverage for the loss or damages caused due to an external explosion, accidental collision, self-ignition, burglary, malicious act of a third-party etc.

Premium Comprehensive Policy:

This one is the most expensive car insurance policy in Dubai. Usually, the insurers offer this policy to the individuals who own sports cars or other luxury cars.

While there are a variety of car insurance policies available in Dubai, the most basic one is the Liability and Comprehensive insurance. Those who want to save on premium and ride an old car, third party car insurance is enough. Alternatively, those with brand-new or luxury cars can opt for comprehensive or with add-on cover.

Keep the Relevant Documents Handy

In order to avail car insurance in Dubai, you will need to furnish the below documents as a proof of identity and driving experience:

  • A copy of driving licence
  • A copy of vehicle registration book (RC). In case of a brand new car, you will need to provide the copy of the invoice of pro-forma.
  • A copy of passport photo page and visa page
  • Vehicle details: model, age
  • A copy of previous policy, if any
  • Proof of Income

Know How Car Insurance Premium is Calculated

There are certain factors that determine the premium of car insurance. These include manufacturing year, make and model, size of the engine, claims history, the location of registration, risk appetite of the driver, driving experience etc. The below table shows how these factors affect your car insurance premium:

Factors Influence on Premium Rate
Cars with a high rate High
Driver with less driving experience High
GCC coverage High
Off-road assistance High
Car break-down add-on High
Driver with the age less than 30 High
New car with higher safety features Law

Transfer Accrued Bonus

If you are porting your current car insurance, don’t forget to transfer the existing car bonus with the current insurer. You should coordinate with the current insurer to receive ‘No Claim’ certificate, which will further allow you to claim NCB bonus from the new insurer. This bonus is offered either as an increment in the sum insured or as a discount on the premium for the subsequent year.

Does Your Insurer Offer Off-road Insurance

Usually, car insurers in Dubai cover only road accidents. However, being an adventurer’s paradise, dune bashing or wadi bashing in Dubai offer the most thrilling experience. Make sure your insurer covers thrilling off-road activities as well.

Roadside Assistance is Important

Emergency roadside assistance comes as a saviour in case the car breaks down in the middle of a journey. A car insurance policy with roadside assistance offers emergency assistance in case of flat tyre, running out of fuel etc. You can add this cover to your basic car insurance by paying an extra premium. With a roadside assistance, availing emergency services are just a phone call away. However, not all the insurer offers 24×7 assistance in Dubai. So, before taking a plan, go through the policy document thoroughly.

Wrapping it Up!

No doubt buying cars in Dubai is daunting. As it involves a huge chunk of your income, your set of wheels needs special care. This can be ensured only with an adequate car insurance, which also covers you financially. We often cling to the first car insurance that appears to us without going to the extent of coverage it provides. This attitude may result in hefty losses in a long run. Hence, next time whenever you are up to buy car insurance in Dubai, keep these things in mind and ride safe!