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Car Insurance Questions & Answers Session

Written by Wasim

How can you save money with a no claims certificate? Is your car insurance covering flood damage and natural disaster in the UAE? What is the ideal age to get insurance for your car? Can you get insured without a driver’s license? What would you do if you got involved in a car accident? Which type of car insurance policy should you select? People usually have this type of questions, that is why we have come up with the car insurance question and answer session so that we can address some of those burning questions that you have. Let’s get into it:

How do I choose the right car insurance policy?

There are two main types of car insurance policies, third party and comprehensive. It’s either cover for your car or cover for the damage your car causes or both. The one that you choose comes down to your specific requirements. Basic third party insurance is very affordable, which is great, but a comprehensive cover is the best. A comprehensive insurance plan will keep your vehicle safeguarded and your expenses covered in situations of accidental fire, robbery, animal collisions, weather damage, flood damages, among many others. Comprehensive insurance does not only provide cover for both you and third party, should an incident occur, it often covers your emergency medical expenses as well as the loss of, or damage to any personal belongings in the insured vehicle. Depending on the insurance company and any additional benefits you purchase, the policy even provides a replacement car while yours is being repaired. Still, even with some of the great deals out there, comprehensive insurance does come with a higher price tag. However, if your budget won’t quite stretch it may be worth considering a third party plan option. Third party is the minimum level of coverage required by law, therefore, It protects you from the costs of damage your car causes to someone else’s car; however, it does not extend to any damage your car suffers in the event of an accident or an uninsured incident.

How is the insurance premium calculated?

Car insurance premiums are calculated after considering the make, the model of the car, size of the engine, risk profile, claims history, and the year. Certain factors will affect your insurance premium. Factors like, if your vehicle has a high safety feature, your premium will be low because you are less likely to be in an accident that requires a claim. However, if the price of the car is on the higher end, then the influence on the premium will be high. The same goes for drivers under the age of 25. They are considered to be a flight risk as 45% of the accidents in UAE are said to be caused by the young.  Also, a driver with less experience will have to pay a higher insurance premium in comparison to a more experienced and older driver.

Can I get insured without a driver’s license?

As we all need to have a valid driver’s license at some point, no law restricts people from buying a vehicle without having a driver’s license. Millions of cars are owned by corporations or other types of non-human legal entities. They are purchased in the company name, registered in the company name and insured in the company name. The insurance company will usually want to know who is the primary driver, which helps them figure out the premium. Ownership is not a license to drive the car. Any person or entity can purchase and register a vehicle, but only a licensed person can legally drive the car. The car dealership will be happy to sell a car to anyone or any legal entity, and the motor vehicle department will be glad to register the vehicle provided you supply them with the items they require.

Do car insurance companies offer additional covers?

In UAE, Third Party Insurance is a must, and apart from that, there are also some extra insurance covers and features offered by car insurance companies.  These are called add-ons, and they affect the overall price. Add-ons include agency repair, emergency medical expenses, personal accident cover, off-road cover, roadside assistance cover, among many others.

How can I make a claim when my vehicle is damaged?

When you file claims, make sure you have the driver’s license copy, vehicle registration copy, and the original policy ready for claiming. If there was another vehicle in the accident, then you need to share the information with your insurance provider so that the claiming process will be effortless. Also depending on your insurance provider, you have to pay a policy excess. This is paid upon claiming the insurance.

    Originally published Jul 16, 2019 12:30:27 PM, updated Feb 10, 2022

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