Car Insurance in UAE – A Complete Guide

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UAE Car Insurance Guide

People do invest plenty of money on their favorite cars, so it’s important to make sure whether you have registered and insured your vehicle with the RTA (Road Transport Authority) before making it yours, this is also most important to safeguard your vehicle during any accidents or life-threatening issues.

Car Insurance is one of the mandatory options in UAE, so everyone has to select an insurance policy based on their requirements for the purpose of protection and security. Choosing the best and suitable car insurance policy in UAE is tedious as there are multiple options available with the best benefits.

You should always ask yourself specific questions like what is the best car insurance policy available?, Which would be the best car insurance for their needs?, What benefits the needed insurance policy should cover? , Which type of car insurance you need to choose, cheapest or the trendier one? etc to pick the right car insurance policy for you.

Synopsis

  • Purpose of a Car Insurance In UAE
  • Types of Car Insurance in UAE
  • Other Add-Ons to Focus to enhance your Premium
  • Annual Premiums to focus while getting your car insurance policy.
  • Documents Required
  • Purpose of  Car Insurance in UAE

    In UAE, every vehicle should own a Car Insurance cover in order to protect your car from any accidents or natural calamities, in this case, you will be paid for any defects occurred by the insurance company as per your chosen insurance rules and regulations.

    Types of Car Insurance in UAE

    You can choose the preferred types based on two crucial aspects namely your basic requirements and the risk capacity. The provisions indicate your wish of benefits that your insurance policy should cover.

    The possibilities of defects and damages to be high or low determines the risk capacity so you should be aware of the answers to choose the right type of insurance.

    Proceed below to find the detailed explanations of each car insurance types.

    Comprehensive Insurance:

    As per the name, the policy will provide the vast range of protection to your vehicle, the set of benefits includes

    Covers the defects caused by yourself or any third parties occurred due to an accident or other issues.
    Covers the damage caused to your vehicle during any fire, vandalism or theft.

    The insurance of this type will cover all damages for any parties, and therefore most of them stick to go for the car insurance policy.

    TPL (Third Party Liability) Insurance

    The TPL insurance policy Insurance cover is a limited one, and this will work out only if you have damaged other people vehicle, this policy does not provide any benefits for your car if they defect in an accident or other issues.

    If an accident happened without your fault, then you need to check out whether the opposite party has the TPL policy covered to pay for the damages caused for your vehicle.

    The premium is low when compared to the comprehensive policy as the insurance cover is limited, most of the beginners prefer this insurance as they are affordable without knowing it’s a blunder mistake.

    Other Add-Ons to Focus to enhance your Premium

    Here are some of the additional add-ons you need to know before choosing an insurance policy cover. The following Add-ons will be a significant aspect of increasing your premium.

    GCC Coverage: If you are the one who often travels to nearby GCC nations then you definitely need a more comprehensive insurance cover plan registered as few countries like Oman will never leave you inside their place until you have a standard GCC or International Insurance with you.

    Roadside Assistance: This is one of the best insurance covers everyone should adopt as this plan offers you a towing service or a mechanic when your vehicle stops without fuel or gets break down in an important trip or journey.

    Car Rental: Some policies help in covering the cost of your vehicle when it’s left to rent if you have put over them in the workshop.

    Agency Repair: Your car will run in good condition if it’s serviced and repaired from an official and authenticated dealer rather than from a local car mechanic shop so make sure you have this option covered in your car insurance policy.

    The passenger, Personal, Personal Belongings Accident Cover: In the case of death or any other life-threatening issues or if your personal belongings have been stolen, and these cover will cover the cost of the damages occurred.

    Apart from the above Add-ons, there are also some of the essential add-ons you need to look namely Storm, Fire or Tempest Cover, Alternative or Rental Vehicle Covers etc.

    It’s good that everyone has all these benefits covered by your car insurance policy.

    Annual premiums to focus while getting your car insurance policy
    Once you have selected the type of insurance policy you need to focus on the premium you need to pay annually, here are some of the factors you need to consider for getting an exceptional deal when calculating an annual premium. In this, you need to pay a certain amount to the Insurance Agency for getting the damage and injuries covered over your policy.

    Here are some of the answers for the questions to check out while picking your annual premium in an insurance policy.

    The validity of your Insurance Policy

    Unlike other Countries, UAE provides the insurance policy for 13 months instead of 12 months, and this extra one month is considered to be the period for re-registering your car by the Road Transport Authority.

    How will be your Premium Insurance Policy Calculated?

    Premium is something you are paying to your vehicle insurance agency to protect your car from any defects and other issues, i.e. to keep insured for 13 months, this cost factor depends on various impacts like the model of your vehicle, cost of your car, your age, your experience on driving, your license, the car manufacturer, car specifications and much more.

    You need to pay an extra amount as the premium if you are less than 30 years old, if you have a record of prone driving or if you have a three years old exclusive car model.

    The below table will provide a clear-cut idea regarding the Insurance Premiums.

    Aspects Insurance Premium in terms of Low or High
    The Age of the applicant is less than 30 years High Premium
    New Model Car with all essential Safety Factors Low Premium
    Off-Road Insurance Coverage High Premium
    GCC Coverage High Premium
    The applicant with less driving experience High Premium
    Breakdown Coverage High Premium
    The price of the vehicle is costly High Premium
    Perfect Driving License with no prone to accidents Low Premium

     

    How to lower your Premium?

    There are certain things you can perform to keep the insurance premium within your budget.

    Going for a ‘No Claim’ Certificate: The certificate means that your car has not faced any accident in the past years, which means you are going to get the discount when you renew your insurance policy.

    Opting for Essential Add-Ons: You need to make sure whether you are in need of any other vital add-ons before claiming the insurance, if you think they are not mandatory then you can skip them.

    For example, if you are the person who only travels within your country, then you will not need a GCC Policy covered on your car insurance.

    If you are ready to Pay Extra Fees: If you agree to pay the fees for the accident that is caused by you, then you can lower the annual premium. The higher the amount you agree to pay means lesser the annual premium amount.

    In Short,

    ● You need to compare the premiums three to five times before you grab them yours.
    ● Keeping a clean record on your driving experience.
    ● Going for a reliable, authenticated and trusted garages rather than sticking with the local mechanical car shops.
    ● Choosing the best and needed Add-Ons.
    ● Calculating the right estimated value of your car and the premium insurance.

    Related: 5 Tips to find the new car insurance policy in UAE

    How to Buy the Car Insurance Policy?

    You can get your vehicle car insurance policy from any of the UAE Road Transport Authority Renewal Centers, the other way for purchasing the premium is by contacting the leading Car Insurance Agencies and ask them for a quote.

    The Insurance agency will ask you for the following documents and the annual premium fees for providing the car insurance policy.

    ● A copy of your ID card (Emirates)
    ● A copy of the car Registrations Documents
    ● No claim Certificate if its applicable for your policy.
    ● A Copy of your license(Driving).

    As an end, choosing the right type of car insurance policy can be simple if you are legitimately following the above ideas. You just need to balance everything with your budget and the safety coverage types while opting for the best car insurance in UAE.

    Another important point is to compare the maximum car insurance available with your needed benefits before opting for your vehicle insurance policy, and this will definitely help in choosing the legitimate insurance car cover for you.

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