8 Things You Need to Know About Car Insurance in Dubai

It is a legal mandate for all vehicle owners to have car insurance whether they have a used car or a brand new car. Vehicle owners are required to buy car insurance before the registration of the car. In the United Arab Emirates, there are a lot of insurance companies, banks, and brokers that offer car insurance. That is why it can be confusing for an individual to get car insurance in the United Arab Emirates.

In order to be sure that you buy the best car insurance policy from the best insurance company as per your requirements, it is important for you to have sufficient knowledge about the various car insurance policies and the types of service providers.

Comparison is the Key

There are many tools available online that help to compare car insurance policies. You must compare insurance plans so that you can buy the best insurance plan as per your requirement and budget.  In order to compare plans, check out online comparison tools. One of the main features to compare is the Incurred Claim Ratio of the shortlisted insurance plans. It speaks volumes about the financial health of the insurance company.

Moderate Incurred Claim Ratio implies high chances of your claim settlement. Comparing car insurance plans online is very simple. Just type car insurance Dubai online and conduct a Google search. In a matter of a few seconds, it will display various results.

Check out some of the things that you need to know about car insurance in the Dubai:

Select the Type of Insurance According to your Requirement - Basically, there are 2 types of car insurance plans:

1. Comprehensive Insurance: Comprehensive insurance provides you with wider coverage. As a result, it is slightly costlier in comparison to third-party car insurance. It is costly because the insurance policy does not only cover the car against accidents, fire, malicious acts, and theft but also provides coverage for personal accidents if passengers and driver need medical care. Basically, it provides coverage for you and the third-party in case an accident happens.
2. Third-Party Liability Insurance: Third-party liability insurance provides coverage only for the third-party car and passengers if an accident happens. So if you have purchased third-party liability insurance, then you will have to pay a less premium when you buy or renew the plan.

That being said, you will have to pay extra in case of any damages caused to your car due to an accident.

If you have availed car loan, then most of the bank in the United Arab Emirates will not permit you to

The insurance experts recommend buying comprehensive car insurance instead of third-party liability insurance. It offers wide insurance coverage and financial security in case of an accident.

To Start the Process, Collect all the Documents Required

In order to start the insurance buying process, you will have to submit some documents to the insurance provider as proof of your driving experience and identity. Here is the list of documents that you are required to submit with the insurance agency:

1. A copy of the passport main page
2. A copy of the visa page
3. A copy of the driving license
4. A copy of the registration card of the vehicle (if your vehicle is new then you will have to submit a copy of the proforma invoice)

Know how the Insurance Premium is Calculated

The car insurance premium is calculated after taking various important factors including model and make of the car, the years, the engine size, the driver's risk profile and claim history into consideration.

The table given below will help you to understand how various factors affect the amount of insurance premiums. If the driver has less experience then he is required to pay a premium that is higher than the older and experienced driver.

Don’t forget to Claim the Insurance Bonus

If you already have a car insurance plan for your vehicle but you want to switch to another insurance company then, you must get a 'No claims' certificate of from your old insurance company if you haven insuider witch to another insuranc. This certificate will provide you with a benefit. You will be eligible to get a discount on the amount of annual premium when you will present this certificate to the new insurance company.

Check that your Insurance Covers off-road Travel

Generally, most of the insurance companies in Dubai provide coverage for the accidents that happen on the road.

Dubai is a paradise for adrenaline junkies. That is why off-road travel including wadi bashing and dune bashing is very popular. If you are an adrenaline junky then make sure that opt for your insurance plan that provides coverage for off-road travel as well.

Make sure that your Insurance Covers  Agency Repair

There are many insurance companies which provide coverage for only garage repair. It is important that you check that your opted car insurance plan covers agency repair.

Under this cover, your car is eligible to get undergo repaired at the manufacturer’s garage.

Generally, in the case of comprehensive coverage, the policyholder is can avail agency repair for the period of five years from the date of manufacture. However, it differs from agency to agency. The insurance buyer needs to pay slightly more premium in order to avail agency repair cover.

Check whether your Insurance includes Emergency Services

While driving on Dubai roads, you never know when you will face an emergency such as a flat tire or you run out of fuel. In such a case, you can contact the insurance provider for roadside help if you have opted for the emergency services cover. Though, there are some insurance companies who do not provide roadside cover for 24 hours. It is important that you check that your insurance covers emergency services 24*7 before signing up.

Ensure that the Premium includes Compulsory Excess

The premium amount that you pay to the insurance company includes the total value of the vehicle and minimum compulsory excess. The excess amount is charged on the basis of value and model of the vehicle. It makes sure that you don’t pay a higher insurance premium.

In a Nutshell

Now you know the 8 things you need to know about car insurance in dubai. At the time of buying/ renewing car insurance in Dubai, make sure you keep these points in mind. It will help you to make an informed insurance decision.

At the time of buying/ renewing car insurance in Dubai, make sure you have the answers to the following questions:

1. What are the types of car insurance that you can buy in Dubai?
2. What is included in comprehensive third-party liability car insurance?
3. What are the required documents to start the process of car insurance in Dubai?
4. How the insurance premium is calculated?
5. How can I claim the insurance bonus if I want to switch the insurance company in Dubai?
6. Can I get the insurance coverage for off-road travel in Dubai?
7. What is agency repair in car insurance?
8. What are the emergency services in car insurance that are provided in Dubai?
9. How can I compare insurance plans present in the market?

It will help you to come across the best car insurance plan in Dubai.