Car insurance is a policy that covers your vehicle and people in it in the event of any accidents or other issues that come up with the car. This has become important all around UAE as the 7 Emirates are experiencing a massive growth in vehicular traffic in recent years. With there being more cars available all around UAE, particularly high-end and expensive luxury and sports cars, it is critical to ensure that damages to such vehicles are covered.
This is especially since there’s an increased risk of wrecks all around the country. In fact, many local laws have made car insurance mandatory for all vehicle owners. This is to protect all those who might have an unpleasant impact by car accidents.
What Options Are There?
Insurance providers like CBD, ADIB, Mashreq, etc., have plenty of different insurance policies for you to choose from. These particularly come in five different categories:
A comprehensive or basic insurance policy covers damages to your car. This is typically offered at a value that is about 3 to 5 percent of the value of your car. This particularly covers damage caused by the driver or by a third party involved in a wreck.
A comprehensive policy includes benefits like free repairs from a dealer, can hire a car if your regular car is not working, and insurance in other GCC countries. This can cost up to 10 percent of the car value.
A premium level option on comprehensive insurance may be offered for an added 2 percent of the car’s value. The rules for using this option will vary from each provider.
A third party policy will cover damages that may occur with regards to an outside party. The third party can claim compensation for the mishap happened.
Third party fire and theft insurance is the legal minimum coverage option. When this is used, the insurance provider will pay for the damages occurred for the third party. The insurance policy ensures that the payments are to be taken care of properly. A third party coverage will not cover damages caused by the driver of the car.
Added Points To See
There are a few additional things to consider when finding a proper insurance policy:
You must be at least 25 years of age and younger than 65 to get insurance.
You should have a driver’s license in UAE for at least a year before getting a policy. This requirement goes up to two years for expats.
Your vehicle should be registered under your name.
Vehicles that are used for racing events or other competitions may not be covered. This is regardless of whether off-road coverage is included or not.
While you can sell your car while your policy is intact, that policy cannot be transferred to the new owner.
Your insurance policy will typically be valid for a full year with one month used as a grace period.
Who Are the Best Insurers?
There are plenty of good insurance providers in UAE. These include the following names:
Dubai Insurance Company covers the damages under most of the circumstances. The features and benefits differ with the plan opted i.e Silver, Gold and Platinum. The coverage provided on third party car insurance starts from AED 50,000.
Qatar General Insurance provides the cover on competitive rates. They provide roadside assistance on requirement.
Dar Al Takaful Insurance provides Third Party and Comprehensive car insurance covers on low rates comparatively. It provides coverage for the driver also as additional features.
Afnic Automobile Insurance provides comprehensive and third party insurance on same cover. It provides coverage of AED 200,000 for everyone in the car during any mishap. It even provides coverage for natural disaster.
Aman Insurance provides roadside assistance anytime for no costs. It covers the expenses of driver and passengers as well.
Abu Dhabi Commercial Bank offers low rates at 2.35% onwards. Agency repairs are offered for five years after the registration date. Third party coverage of up to AED 5 million is also included. Airport pickup service and a personal cover of up to AED 5,000 is provided.
Abu Dhabi Islamic Bank has a policy based on Islamic law with a Takaful contribution. It offers a personal accident cover of as much as AED 150,000 for each person. Fire coverage is included as well.
Commercial Bank International has insurance at 2.5% onward and provides accident benefit for all people in the vehicle. An auto gap feature is also used for coverage in the first six months.
The Commercial Bank of Dubai has a natural calamity cover, up to AED 2.5 million that comes under third-party damage coverage and a personal effects cover of up to AED 1,000.
Dubai Islamic Bank has a Takaful policy under Islamic law that covers up to AED 3.5 million in damages. It also has regular recovery services and up to three years of agency repairs.
Making a Claim Is Easy
A good part about car insurance in UAE is that it is rather easy for you to make a claim on the requirement. You can use the following steps to make a claim for the policy you hold:
Get in touch with your insurance provider as soon as possible after the wreck.
Provide all the information you have on your policy, information on others involved in the wreck and identification details on the cars involved. This is to make the process easier.
A copy of complaint should be gathered from a police station. This may be required depending on your insurance provider.
Your insurer will then review your case and possible review injury and damage claims.
The case will then be resolved based on the results that are found and your particular coverage.
What Makes Car Insurance Useful?
Car insurance can be useful when used properly. There are many advantages of having a good policy:
An agency will provide you with agency repairs for up to five years after you register for a policy.
Doorstep delivery will be provided where your policy will be delivered at your doorstep. You will not have to go to a bank to get the policy.
You can get your car registered for free while taking care of the overall process.
Roadside assistance is available if your vehicle breaks down or you are in an emergency for any particular reason.
Car cash benefits may be available in your policy.
The total coverage provided can be high. The policyholder can get coverage of up to AED 5 million depending on the policy type.
Off-road coverage is available to cover anything that happens to your vehicle on road. This is ideal if you have a truck or other vehicle that is designed for off-road usage in mind.
Personal coverage allows you to get up to AED 5,000 in coverage of possible damages to your car.
You can use a free pick up and drop service to the airport with your policy.
Emergency medical expenses up to AED 3,500 can be covered. This is important for cases where someone may be injured in a wreck.
A natural calamity cover can be added to cover the damages occurred with natural disasters.
You may be given a grace period of about one month to renew your policy after expiration.
What Exceptions Are There?
There is a potential for your insurance claim to be rejected. It may be rejected for these reasons:
Claims are often rejected when you are doing something illegal like not having a valid license or being under the influence of particular substances during the accident.
Your claim may also be refused if you were using your vehicle for purposes outside its normal use. This includes cases where you loaded up your car with more cargo than what it can handle.
Intentional accidents are not covered.
Claims for accidents occurred three years ago are not covered either.
Any falsehoods in your insurance contract can cause your claim to be rejected.
Choosing the Right Policy
You must be careful when determining which policy is right for your needs. There are few tips provided to find a right policy:
Take a look at your individual needs to see what works for your insurance demands.
Compare options to see what policies are available for your vehicle and to see if you can possibly save money in the process.
Consider the total coverage that you would get out of a particular plan to see if it will work for your requirements.
What Determines Its Value?
The value of your car insurance policy will vary based on many factors. These include:
Your age; older drivers typically need not pay much
Your experience; people who have been driving for a while will not be at much of a risk and therefore will pay less
The type of car you have; this is especially based on how popular it is among thieves
The overall value of the car; Insurance on branded cars is expensive
The amount of time you have spent driving under a policy without making a claim
Any cover that you hold; a policy with more benefits will have high charges on it