Since purchasing a car is a significant investment, it is crucial to protect it against potential damage and liabilities with a good car insurance policy. The UAE government also makes it mandatory to buy car insurance when you register a new or pre-owned vehicle. The best practice would be to obtain a unified car insurance policy and choose an authorized insurance company that would deliver sufficient protection and quality services. So, if you are buying a car for the first time and are confused about which car insurance policy you can opt for, we are here to help!
Here is a quick guide to everything you should know about buying a car insurance in the UAE.
Why is it mandatory to buy car insurance in the UAE?
A good car insurance policy provides full coverage for your vehicle against bodily injury, car damage, and death to any third party. Furthermore, it covers all expenses you have spent on the repair work incurred due to car accidents.
The RTA law requires you to get an insurance policy once you purchase a new vehicle in the UAE, otherwise, you may bear heavy penalties and fines if driving uninsured. The penalty or fine for an uninsured vehicle is around 500 Dirhams, confiscation of the car for seven days, and four black points applied to the license.
Types of car insurance in the UAE
An insurance company strongly recommends you go through all insurance policies and what they cover before selecting one. Not all insurances offer comprehensive benefits; hence, one needs to conduct thorough research before opting for the best plan. In the UAE, there are mainly two types of insurance:
1. Third-party car insurance
It is compulsory to get third-party insurance in the UAE. It is a basic insurance policy that covers damages caused by you to a third party. The premium for this policy is less than other types, but it doesn’t cover the damage to your vehicle in case of road accidents.
2. Unified car insurance policy
It is a comprehensive insurance policy that offers broader protection to the policyholder. It covers all types of car damage. Furthermore, it protects you against damage caused by fire, vandalism, or theft.
There are three ways to buy insurance in UAE. You can approach a company representative, contact an individual insurance broker or buy it online. Make sure to use an insurance comparison calculator to decide on the best car insurance company, rate, and coverage.
Benefits of getting add-on covers in your car insurance policy
The standard insurance plan only fulfills the basic requirements within a pre-decided geographical range. But if you want to meet all your insurance expectations, you can choose a customized insurance plan that best suits your needs. There are many add-on covers you can opt for to gain enhanced protection. Here are a few:
1. GCC coverage
Adding GCC coverage extends territorial coverage to GCC countries like Kuwait, Oman, Qatar, and Saudi Arabia. It allows you greater freedom to plan long-distance trips in GCC (Gulf Cooperation Council) countries.
2. Personal belongings coverage
Personal effects insurance protects you against damage or loss of your personal belongings while they are in an insured vehicle. Commonly insured items under this add-on are laptops, cell phones, tablets, sunglasses, and expensive clothing items.
- Off-road cover
This type of cover is common for 4x4 vehicles and optional for those prone to off-road adventuring. It protects the policyholder against damage or loss while driving off-road.
- Roadside assistance
It offers cover for breakdown or accident recovery services, including vehicle towing, tire replacements, and battery jump-starts.
Read More: How to save money on expensive repairs
Requirements for getting car insurance in the UAE
An insurance company may ask for several documents to confirm your identity and driving experience. Insurers may ask you for a driving license, the registration of your car vehicle, and a copy of your passport photo page. Once you submit all the essential documents, an insurer will guide you through the further steps. You can resolve all your queries with them and clear your doubts in case of irrelevant terms.
Read More: Guide to renew your driving license in UAE
Car insurance policy charges
The insurance premium varies according to the type of car insurance policy. For example, third-party insurance is relatively cheaper than a comprehensive insurance plan. On the other hand, if you opt for an inclusive plan along with a few add-on covers, you may have to pay excessive charges. Make sure you choose the plan that suits your needs and budget.
We hope the above-mentioned tips can help you avoid all the pitfalls and make the best insurance choice for your vehicle. If you are looking for easy car insurance, CARS24 have done the legwork to get you the best insurance plans from UAE's most reputed bank!
Reach us at Cars24 to share your experience or how you find an insurance-buying process in the comments!