Stand-Alone Own Damage Car Insurance in the UAE

Finding a good car insurance plan is a priority task when you buy a new car. The field of car insurance can be overwhelming courtesy the never-ending options. While having plenty of options to choose from provides you with the freedom of selecting from a variety of options, it also increases the level of confusion you may face in doing so. Which type of car insurance to choose from is the first decision you will have to make here. There are two main types of car insurance plans available in the UAE – partial coverage and full-coverage car insurance plans. Let’s examine their features, benefits and determine which type of plan will suit your unique needs the best.  

What is a Partial Car Insurance Cover?

Also referred to as the third-party liability car insurance, partial car insurance plans only cover the damages caused to third-party vehicles and injuries sustained by the driver. A third-party car insurance plan also covers the death and disability of the third-party driver. As the name suggests, a partial car insurance plan only covers one part of the damage caused in an accident involving two parties. Any damages incurred by own car are not covered by this plan be it accidental damages, theft, or damage caused by other man-made and natural perils. 

 

What is Full Coverage Car Insurance?

Full coverage or comprehensive car insurance plans offer both third-party and own damage covers. In the event of an accident where you are at fault, a full coverage car insurance plan covers all third-party damages and injuries/disability/death. It also covers the repair expenses for your own vehicle damages and the cost of emergency treatment. Apart from accidental damages, the policyholder is covered against perils like theft, damages caused by man-made disasters or natural disasters, collisions, and total loss of the vehicle due to unrepairable damage. A full coverage auto insurance plan can be customised using add-ons as well. 

Which of the Two Covers is mandatory in the UAE?

Every vehicle in the UAE is required to have a valid third-party liability car insurance cover at all times. This makes partial car insurance mandatory insurance for every driver-owner. Full coverage auto insurance is optional but since it includes third-party liability cover, driver-owners can buy it in place of partial car insurance. They both will serve the purpose of completing legal requirements set by UAE authorities. 

How Are Premiums Calculated for Partial and Full Coverage Insurance?

Partial coverage car insurance plans generally only consider the risk factor associated with accidents when calculating the premiums. So, all factors that determine the possibility of a vehicle causing an accident are considered here. This includes the driving record of the owner-driver and named drivers, the claim history of the car, and the geographical location. 

Since a full coverage car insurance plan covers third-party damages, own damages and several other perils, a few additional factors are considered when determining the premium rates. Apart from driving record, claim history and location, the age of your car, the condition, security features, frequency of natural and man-made disasters in your region, probability of and insured declared value of your car are also considered. 

Which Type of Car Insurance Should You Get?

Partial car insurance coverage is best for your car if it is older than 6 years and is not driven that often. Older cars have lower insured declared value due to depreciation in market value. The premium you pay for comprehensive full coverage may end up being more than the value of the car itself. Examine this particular factor and see if partial coverage is an ideal choice for your car. Comprehensive car insurance coverage is best for new cars or old cars with high IDV. This can include supercars, sports and vintage cars too. If IDV of your car and repair expenses are high, consider getting full coverage for it. 

Partial vs Full Coverage Car Insurance – An Overview

Parameters	Partial Car Insurance	Full Coverage Car Insurance
Coverage	Covers only third-party liabilities such as vehicular damages, injuries, death and disability	Covers all third-party liability, own accidental damages, collision damages, natural disasters, man-made disaster, theft and total loss
Optional or Mandatory	Mandatory cover for all vehicles in the UAE	Optional coverage but recommended
Limits on Coverage	Does not offer any cover for own damages or injuries	No limits on coverage per se
Cost	A cost-effective car insurance plan	Costs higher than partial or third-part liability coverage
Customisable	Cannot be customised	Can be customised using available add-ons
Roadside Assistance	Not offered	Generally included as a basic benefit
Fit For	Best for older cars with low IDV	Best for new cars and cars with high IDV

Why Should You Upgrade Your Insurance Plan to Full Coverage?

Many car owners buy third-party liability coverage in a hurry, most of the times, they don’t even have their insurance need figured out. But this coverage may end up being unsuitable for your car later on. Here are some reasons why you should consider upgrading your car insurance to full coverage from partial:

• Fulfils Mandatory Requirements: Even when full coverage car insurance plans are optional, they are fit to fulfil all legal requirements set for car insurance by the concerned authorities in the UAE. 
• Includes Own Damage Cover: In addition to third-party liability cover, a full coverage auto insurance plan also covers damages caused to your own car. This further reduces the financial burden you have to bear after an accident and makes recovery easy. 
• Protects Against Theft: Most full coverage car insurance plans offer a full payout if your car is stolen. The payout is either equal to the total assured sum of the benefit or the current market price of the car, whichever is lower. 
• Customisable Plans: You get increased freedom of customizing your coverage with full coverage car insurance plans. You can add more benefits or drop a few as per the requirement and create a unique cover that suits your car the best. This feature is not available with partial coverage car insurance plans.  
• Personal Accident Cover: Many full coverage car insurance plans come with personal accident cover as a basic benefit. In addition to covering treatment expenses for your accidental injuries, you are liable to receive compensation in case the accident causes permanent or partial disability. A personal accident cover offers compensation to your dependents if an accident results in death. 

Also Read What is First Party and Third Party Car Insurance? Which One Should You Buy?

Things to Consider When Buying Your Car Insurance

It can be a bit confusing to determine the kind of car insurance coverage you need. If that’s the case with you too, you can consider the factors listed below before buying a car insurance plan:

• Age of Your Car: If your car is new, you may want to buy a full coverage car insurance plan for it. Repair expenses and maintenance of a new car are higher than that of older ones. It will be cost-effective to have an insurance plan coverage for you instead. 
• IDV of the Car: Cars with higher insured declared values attract higher maintenance costs. The financial setback can be huge even after a small collision or accident. This is why you should consider choosing full coverage auto insurance for such cars. 
• Your Unique Needs: Make a list of the things you want your insurance plan to cover. For example, if you drive to Oman often, add the geographical extension to your list of requirements. Stick to this list when choosing your car insurance plan. 
• Your Geographical Location: If you live in an accident-prone area or drive there often, consider getting a full-coverage plan for your car. Frequent small repairs can pile up expenses quite a lot. It’s better to have your insurance cover them for you. 

Conclusion 

Gathering as much information as you can about your option is an integral part of buying the best possible option. Get familiar with your options, make a list of your requirements, compare your top choices and then make an informed decision. Choosing correctly between partial and full coverage auto insurance can make a huge difference. Consider both the price and offered benefits when you go out to buy your car insurance coverage and choose a good, cost-effective plan.