Why is it Illegal to Drive Without Car Insurance in the UAE?

Insurance policies are great options to ensure the availability of adequate financial protection in case of an unfortunate event, the same concept applies to car insurance in the UAE. Car accidents or any other damage to your car can be difficult to tackle, both emotionally and financially. While the former cannot be stabilized immediately, one can always recover the financial loss with the help of a sound insurance plan. Consequently, it is always a wise option to purchase car insurance coverage to keep yourself financially shielded during a mishap. 

Several insurance firms across the UAE offer coverage plans related to car insurance. These plans can save you from bearing all the hefty bills produced after repairing your car. However, even the legal aspect applies here besides the utility value of the plan, as the UAE government has made it compulsory to have a car insurance policy for all car owners. 

So if you do not purchase any insurance coverage for your car, authorities have the right to take legal action against you while also imposing fines. In this article, we will uncover why is it illegal to drive without car insurance and other details related to car insurance in UAE.

Why is it Illegal to Drive Without Car Insurance?

As per the UAE government rules, each car owner must have car insurance for their vehicle. This aspect is beneficial for individuals, as car insurance protects you from hefty expenses that can be incurred due to car damage. Moreover, as one may even get injured in a car accident, the financial burden of the car is often accompanied with medical expenses. 

Thus, it is always recommended to get a car insurance plan to secure your finances to a great extent besides the factor of law compliance. In addition to this, it is always a wise decision to carry your relevant car policy documents whenever you are traveling. If a misadventure takes place, it will be difficult to claim your insurance without any appropriate documents.

Consequences of Not Having Car Insurance in the UAE

As it is mandated to buy car insurance in the UAE, failing to do so can result in heavy fines, or the suspension or cancellation of your driving licence. If you are caught without a car insurance policy while driving, the traffic police can impose a fine of AED 500 and add 4 black points to your driving licence. In the worst-case scenario, even your vehicle can be seized for a few days. 

While the implications of fines and confiscation are obvious, even the accumulation of black points can have a detrimental effect. Individuals having black points on their driving licences can view the impact when they go to buy a car insurance plan later. Most car insurance providers charge a high amount for insurance premiums for such customers.

What Happens When You Come Across a Road Accident Without Car Insurance Coverage?

Generally, two situations can arise at the time of a car accident. Given below is an explanation of what can happen in both circumstances -

• When You Are Responsible for the Event

If you are responsible for the accident, not having car insurance can lead to massive bills along with a fine. As injuries are always possible in accidents, you are not only liable to bear the third-party car damage expenses but their medical costs as well. After settling all these payments, you will be required to spend on your damaged car and get it repaired using your own funds. 

If a situation arises persists where you are unable to cover the expenses for the third party (whether for the damaged car or medical treatment), your case can go to the court which will make a decision on how you can pay for the loss. Additionally, you will also be required to pay the fine for not having a car insurance plan. Thus, in such situations, you will be accountable to cover the damage expenses of the third party from your funds while also being fined for driving without valid insurance. 

• When You Are Not Responsible for the Event

If the third party is at fault, they will be held accountable for paying for all your damages which can include car damage and your medical cover in case of an accident. However, the police still charge a penalty on you for not having valid car insurance. As a legal punishment, the authorities have also put restrictions on the insurance amount to be paid by the third-party to individuals not having proper car insurance.

Now that you are aware of why is it illegal to drive without car insurance and the causes of it, you should make sure to purchase a car insurance policy as soon as you buy your car if you don’t have it already. 

What Does a Car Insurance Plan Cover?

Insurance companies across the UAE include car insurance to manage the financial burden of the damaged vehicle and injuries caused to the person. Car owners can opt for coverage according to their requirements, with each type of car insurance coming with various plans and prices. 

The following are some of the common coverages that every comprehensive insurance plan includes in their auto insurance -

• The car owner’s car damage

• A car owner’s accident

• Third-party car damage

• Third-party accident

• Car Theft

Other than that, you can also select any add-on plans and customise your entire car insurance coverage. Some of the major add-ons in the UAE include roadside assistance, fire accident, car accessory protection, key replacement service, off-road driving cover, engine protection, car breakdown assistance, car agency repairs, zero depreciation cover, and many more.

Car Insurance Addons
Personal Accident Cover	Agency Repair
Engine Protection Cover	IDV-Insured Declared Value
No Claim Bonus	Passenger Cover
Return to Invoice Car Insurance

What Documents Do You Need to Purchase Car Insurance? 

All insurance providers required different documents when you apply for car insurance in UAE with them. However, the documents generally asked by most providers in the country that you must carry when buying a car insurance policy are -

• Valid Original Passport

• Original Residence Visa

• Original Emirates ID

• Registration documents of your car

• Other car-related documents (in case you made an offline purchase)

• Previous car insurance policy (if any)

Key Takeaways

By now, you must have understood why is it illegal to drive without car insurance. As per the traffic law, it is mandatory for all UAE residents to have car insurance coverage. Neglecting this can land you in legal trouble in the form of fines and black points on your driving licence, and more – all besides incurring heavy financial losses in case of an accident.

If you don’t have car insurance yet, you can continue on policybazaar.ae, check out the ‘car insurance’ section, explore the best plans for car insurance in UAE and purchase one without much effort.