Individual Insurance

Car Insurance in Dubai: What You Need To Know!

Owning a vehicle is not a luxury anymore, but a necessity. Especially in a place like Dubai, where the daily commute is largely in a motorized vehicle. Dubai is also a place where luxury and exotic vehicles are large in numbers. For the safety of all on the roads, the UAE government has mandated by law that a vehicle owner must have motor insurance coverage.

The process of picking the policy that suits your needs can be a tedious one. But don’t let this drive you to conclude on just any insurance plan. We will help you understand the basics of car insurance, the different legal clauses and optional coverages. Read on to find out more about their classifications, and you can get yourselves the right coverage at the right price!

Understanding car insurance in Dubai

For starters, car insurance companies in Dubai offer plans in two variants:

Third-party insurance: A third-party insurance package covers the regulatory requirements. This inexpensive plan covers for the injuries and damages that are inflicted on the other party. One must take note that this plan will not cover the policy owner. Hence it makes for a cheaper and an affordable plan.

Comprehensive plan: If third-party coverage is the bare minimum, then a comprehensive plan is the highest level you can get in terms of coverage. This type of cover will provide financial help for you as well as the other party involved in case of an accident. Moreover, the coverage doesn’t stop there, as comprehensive plans also cover for fire, theft, and personal accidents, etc.

What do you need to get started?

Getting yourself insured also comes with a bit of paperwork that you need to sort out. The first of which is the actual registration. For a normal insurance sign-up process in Dubai, the following documents are required.

1) Copy of your driver’s license
2) Copy of the vehicle registration (Proforma Invoice and Vehicle Clearance Certificate if it is a new car)
3) Emirates identity card

Know how your premium is calculated

An insurance plan will require you to pay a premium. However, not everyone is treated equally when it comes to insurance premiums. The amount you pay as premium changes with a variety of factors. Your age, experience and the types of coverage are a few factors that determine the overall premium price. Let us list out a few of the most used metrics to gauge premiums.

    • Driver’s age: If the driver’s age is below twenty-five, the insurance premium tends to be high.
    • Price of the car: Costlier cars incur pricy premiums.
    • Car specs: A new car with a lot of safety features will have lower premium rates.
    • Experience: The more experienced the driver, the less will be the premium.
    • Off-road Coverage: If you want off-road coverage for your vehicle, it adds to the price.
    • GCC coverage: If you travel within GCC countries, you can opt for GCC coverage, which ups the premium prices.
    • Breakdown coverage: Having added assistance like breakdown coverage will further increase the premium.
    • Rent a car option: Having this option enables you to get around in case your car is in the garage for repairs due to an accident.

    Switching to a new insurance company? Claim that bonus!

    If you are moving to a new insurance company, you can present a “no claims certificate” to the new insurance provider to get discounts on the annual premium. You can obtain a “no claims certificate” from your current insurance provider.

    Off-road insurance

    If you wish to take your multi-utility vehicle to the sand dunes, ensure that you get off-road coverage. Off-road coverage comes as an extra in insurance policies. So, if a breakdown or an accident were to happen off the road, you would not be spending money from your own pocket. Off-road coverage is highly recommended in case if you have bought your vehicle to do some off-roading.

    Emergency services

    It can be a daunting experience when you are stranded on a roadside due to a flat tire, low fuel or any other unforeseen reasons. But did you know that you can call your insurance company to take care of such things for you? Opt for emergency services to help you get out of tricky situations on the road.

    Let us take care of you!

    Now that you are armed with this knowledge, we can help you secure the right coverage that suits your needs.

    New Age Insurance Brokers has relationships with over 25 insurance companies, and our team of motor insurance experts can help you choose the right kind of plan that is tailor-madeto your requirements. We screen insurance plans from the plethora of car insurance companies in Dubai and strive to give you the best coverage you need at the right price! Call us now at 04-3573378 to speak to an agent.