The process of car insurance feels complicated to most people in the UAE. But the process will seem quite simple if you have a basic knowledge of car insurance procedures and some keywords like deductible or premium that will help you understand policies, and you will be able to decide better.
Car insurance in UAE is mandatory for every car according to RTA law. The insurance companies cover all the costs if anything happens to your vehicle. For example, if any natural calamity like lightning, accidents, or flood hits your car, it will be protected financially by your insurance company.
Following are the key terms you should know before going for your car insurance:
- Premium refers to the costs you pay to the insurer for your car insurance contract for giving you financial protection when you encounter car damage.
- Insured value refers to the maximum amount your insurer will pay in case of a complete loss of your car.
- Excess refers to that first payment you pay when you agree to the policies and make a claim.
- Agency repair: when damage occurs to your car due to an accident, you can choose the agency repair option where your car is sent to the car dealership (from where you bought your car) for repairing purposes. Experts take care of your car there and provide quality services. That is why it is a bit expensive option against priority repairs.
- Priority repairs: it is also known as non-agency repairs. It refers to the repair service offered by a local workshop that your car insurance company approves. It is a bit cheaper option, and it takes less time to repair the car because workshops usually provide services to fewer cars than a car dealership.
- Certificate of car insurance: this certificate proves that you have insurance on your vehicle and contains all the insurance details. If you run into an accident, RTA will require this document from you before proceeding with a police report.
Unlike other countries where people can pay for insurance monthly or quarterly, you have to pay annually for car insurance in the UAE. It seems pretty expensive, but it provides the maximum protection to you and your family. Think of it as an asset more than insurance only. Insurance companies have your back in an emergency and support you financially when you need it badly.
Types of car insurance in the UAE:
Different insurance companies provide various benefits to their customers. So, it becomes difficult to decide the best car insurance in UAE. Every person chooses a company depending on their needs. Mostly, car insurance lasts for 12 months in the UAE, but some companies offer a free month that becomes 13 months collectively.
No matter what the company is, there are two types of car insurance in the UAE:
- Third-party liability insurance:
Third-party liability car insurance is the primary insurance policy in the UAE. In this type of insurance, the company pays for damage caused by you to other’s cars, but it will not cover the costs of your vehicle. However, you get financial protection for all the claims you are held accountable for that can include damage to the car, physical injury, or loss of life of another person. This insurance is cheaper than any other car insurance because it provides basic financial coverage only.
If you encounter an accident caused by another person’s fault, you can check if the other person’s car insurance company will cover your car’s repair costs.
- Comprehensive insurance:
Comprehensive car insurance is considered one of the best car insurance policies. As the name suggests, it offers more comprehensive protection to your vehicle and covers all the costs of your car if it runs into an accident caused by any third party or because of your fault. Comprehensive insurance also covers the costs of any damage to your vehicle due to an explosion, theft, self-ignition, or any other natural calamity. Users get many benefits if they go for comprehensive car insurance, but the only restriction you will face is that your car should be seven years old. Premium is higher in comprehensive car insurance because it covers the costs of repairing damage caused by all the parties.