Luxury Car Insurance in UAE

High-end luxury cars roaring on excellent roads – you can frequently catch this site in the UAE owing to the world-class road system in cities like Dubai, combined with a taste for top-notch cars. Such cars are immensely popular in the emirates due to the aspect of a luxurious drive, the perfect status symbol, and more.

With that said, it is crucial to understand that these cars bring their own risks. With the costs of repair and other services being significantly higher for luxury cars than regular ones, any damage to a luxury car can bring major expenses as well.

The solution, as you may expect, is practically the same for all cars – car insurance. In this article, we will explore luxury car insurance in uae and address questions like why you should get luxury vehicle insurance if you have such a vehicle, what to look for in the insurance plan, what add-ons you can consider, and more.

Why Get a Luxury Car Insurance Plan?

Car insurance is crucial if you own a car in the UAE, more so if you have a luxury car. This is because it can easily cover most of your expenses concerning your car if the latter is damaged in an accident or stolen.

Additionally, car insurance is mandatory in the UAE as per the traffic rules – driving a vehicle without car insurance is considered a punishable offence.

What to Look for When Getting Luxury Car Insurance?

Given the variety of options on the market, you should have clarity regarding some basics to make the best decision. Here are some major points to keep in mind when considering your luxury automobile insurance:

1.) Evaluation of Your Vehicle

Before getting car insurance, it is advisable to get your car properly evaluated as insurance firms determine the premium and other factors for you based on factors such as the age and general condition of the car.

Having said that, the depreciation of new cars is lower compared to older cars. Consequently, you can expect a favourable evaluation and low premiums. Older cars, on the contrary, depreciate quickly, which can translate into high premiums for your car.

2.) Choosing Between Third-Party Insurance and Comprehensive Insurance

To make an informed choice, it is necessary to understand the fundamental distinction between third-party and comprehensive car insurance. In case of an accident, third-party insurance fulfils the driver’s third-party obligations for property damage, bodily injury, or death. However, it does not cover any damages or injuries faced by the policyholder.

A comprehensive insurance plan, on the other hand, extends beyond third-party insurance and covers the insured individual’s injuries, damages, or death. So unlike third-party insurance, a comprehensive plan would cover the damages of both the third party and the policyholder. The cost of this plan, as you may expect, is more than a third-party plan due to its extended coverage.

So if you have an old luxury car or rarely take it out for a drive, you can opt for a third-party plan. Otherwise, you should get comprehensive car insurance to have complete coverage. 

3.) Comparison between Insurance Providers

As you will be spending considerable money to secure insurance for your luxury car and seek assistance from the said provider (if required), it is crucial to find the best plan.

This can only be done by extensively comparing and exploring the top car insurance quotes. You can visit the ‘car insurance’ section on Policybazaar UAE and fill out the lead form to find plans that fulfil your requirements. Once you are on the quotes page, you can compare the plans as per their features, estimated premiums, and others before applying for one.

Recommended Add-ons with Your Luxury Car Insurance

If required, you can always expand the coverage of your luxury car insurance plan with some useful add-ons that you can avail of at nominal prices. Here are some add-on plans that you can get:

1.) Theft and Fire Cover

The fire and theft cover, as you may expect, would financially cover you against your car’s damages due to fire and explosions as well as theft. 

2.) Natural Disaster Cover

Besides road accidents, your car can also incur significant damages due to natural disasters such as hurricanes, earthquakes, and more. With this cover, however, your plan would cover your vehicle against natural disasters.

Keep in mind that this feature may already be present in some comprehensive car insurance plans. 

3.) Personal Accident Cover

Although comprehensive auto insurance safeguards the policyholder’s vehicle and property, the physical injuries faced by them would only be covered with the personal accident cover. If not present in your plan, you can include it as an add-on to have your medical bills and expenses covered in case of an accident.

4.) Roadside Assistance

Roadside assistance cover can be of great help if you ever face any issue with your car. With this cover, you can expect services like flat tyre replacement, boosting batteries, towing services, and more if your car breaks down on the road. This cover can be especially important in the UAE, where harsh weather can cause significant damage to vehicles.

How is Luxury Car Insurance Premium Determined in the UAE?

Insurance companies generally base their premium calculations on details like your profile as a driver, past claims, and details related to your vehicle's make and model, year of manufacture, engine information, and more.

Additionally, your experience is also taken into account when determining the premium. A lesser experienced driver, for instance, may have to pay more compared to an experienced driver as the former would be considered more prone to accidents than the latter.

Some factors related to the premium calculation that you must consider are -

1. If your vehicle is not equipped with sufficient safety features like dual airbags, ABS, and others, you can expect higher insurance premiums compared to those who have equipped their vehicles with adequate measures.
2. Your car insurance prices are directly related to the prices. Thus, you can expect higher premiums for an exotic luxury car compared to a regular automobile.
3. If you are under 30 years, you can expect higher premiums than older individuals.

Keep in mind that having add-ons in your plan can also bump up the premium.

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