Your expensive car could be damaged or vandalised. Get adequate motor insurance to safeguard yourself and your car.
Dubai and the UAE offer potential car buyers a veritable vista of swanky new and pre-owned cars. Whether buying a luxury car or a family sedan, the UAE offers the latest brands and the most competitive finance options for car buyers.
There is one component of the car purchasing process that is more important even than buying the car itself: purchasing motor insurance. Having an insurance policy for your car is mandatory in the UAE. Car insurance protects one’s car against damages in an accident or due to a natural catastrophe. It also covers the car from theft and vandalism.
Types of car insurance policies
There are two types of motor insurance available in Dubai: Third Party Liability (TPL) and Comprehensive coverage. TPL is the minimum legal requirement for motor insurance in the UAE, and it covers the car owner against damages and liabilities arising from third party claims after an accident. It is cheaper than Comprehensive coverage; it also covers basic medical expenses for the car owner after an accident.
On the other hand, the Comprehensive motor insurance is more costly and it comes in two variants: (i) Fully comprehensive and (ii) Comprehensive with options. Under the first, it provides coverage for damages to the car and is priced at a maximum of 5% of the car’s value. In the second variant, the motor insurance also covers repairs from dealers, free hire, free insurance in Oman and GCC nations and no-claim bonuses at an extra cost.
How to choose car insurance
The major factor determining the kind of motor insurance once buys is the extent of travel the car will undertake. There is a provision for purchasing insurance for the Sultanate of Oman if a car from UAE crosses the borders into Oman. However, a mandatory orange card issued by the insurance provider is needed for this passage.
When applying for motor insurance, submit the car’s documents, registration papers, previous insurance history and no-claims bonus proof to the insurance provider. Certain cars (like sports cars) are more expensive to insure, so make sure you understand the insurance costs and clauses before signing up. Also check if the insurance covers damages to cars during off-road incidents (such as the car getting buried under sand while parked).
It is difficult to get comprehensive coverage for a car that is over 5 years old. Also, note that motor insurance is not applicable for accidents caused by drunken driving.