According to the laws by the Road and Transport Authority, UAE for the safety on the road, it is mandatory for all vehicle owners to get car insurance cover. With multiple options for car insurance in Dubai and the UAE it can sometimes be confusing what type of insurance to go for and which motor insurance company provides the right coverage at the right price.
A car insurance policy protects your vehicle financially in case of an accident or a natural calamity. In other words, the repair work on your car due to an accident, is paid for by the insurance company.
There are two types of car insurance available in the UAE:
1. Comprehensive Insurance:
As the name suggests, a comprehensive car insurance policy will offer you a wider protection. It will cover damages to your car caused by an accident either by you or a third person. It will also cover any damage to your car due to theft, or act of vandalism or fire.
2. Third-Party Liability (TPL):
Third-Party Liability car insurance will only cover for damages caused by you to other people’s car or property or sometimes both depending on the accident. If your car gets damaged in an accident due to your fault, this policy won’t cover any repair work for your car. The insurance company is only liable to pay to the third party involved in an accident caused by you.
Because the damage cover is limited in this policy, your premium will be lower compared to that for a comprehensive car insurance policy.
Based on your needs one could also include some of these add-ons to your policy. However, these would also increase your premium:
- Personal accident cover for driver and passenger: In the event that you or one of your passengers suffers bodily injury or death in an accident, your policy can pay out up to 2,00,000 Dirhams.
- Rent-a-car in case of accidents
- Natural calamities cover (Storm, Flood and Tempest)
- Off road cover for 4×4 vehicles: Dune-bashers and those that take short cuts in the city across wasteland would be advised to add off-road cover in case of an accident or breakdown.
- Extended Oman cover: Where you want to drive can impact how much you will pay
- Roadside Assistance: If your car breaks down or if you run out of fuel while on the road, road assistance is a service which will provide you with a mechanic / towing service wherever you happen to be in the UAE.
The premium you pay to the insurance agency depends on not only whether you have chosen a comprehensive or a TPL policy but other factors as well. Factors such as the cost of your car, the model and make of the car, how old is your car, your age, and past driving experience will impact the premium your pay.
In the UAE a one-year policy offers a 13-month coverage instead of a regular 12-month period. The additional one month is a penalty-free grace period offered by the RTA to re-register your car.
New Age Insurance Brokers partners with over 20 leading hand-picked car insurance in Dubai, Abu Dhabi and all other Emirates in UAE. Our car insurance experts can advise you on which insurance provider and policy will best meet your needs.
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