Checklist for Motor Insurance in Dubai
Motor insurance in Dubai should not be taken lightly. Your lack of interest can cost you more than your money.
Some people buy motor insurance just because it is mandatory by law. However, once you get to know the benefits of having an insurance plan you’ll never settle for less.
To get the best motor insurance policy you need to do a market survey. Find out what suits your needs and requirements best.
But no one has time to conduct such thorough research on motor insurance in Dubai.
Therefore, having a motor insurance checklist can save you the trouble of doing all the work from scratch.
If you carefully consider the points mentioned below, you will make a sound decision a lot faster.
Roadside Assistance Coverage
If your car breaks down while you are on your way to something really important, you may feel helpless and frustrated.
Roadside assistance coverage provided by your insurer proves to be nothing less than a blessing in such situations.
This service can be availed by calling on the number provided on your insurance card. You should carry it with you every time you drive.
The number may also be mentioned on the sticker on the left side of your windshield.
Many insurance companies partner up with other companies like International Motor Club and AAA Middle East for handling the roadside services. These include towing, emergency fuel delivery, flat tyres, mechanical repairs, battery boost and lockout situations.
It is an important feature to consider in motor insurance for Dubai residents.
Gulf Cooperation Council (GCC) Cover
GCC coverage doesn’t mean you can safely move from one country to another.
According to motor insurance laws you need to get a third party cover at the border of the country that you are travelling to.
The GCC coverage is just a comprehensive cover.
- Some motor insurance companies offer to cover your own car damages in countries like Oman and Qatar
- But for third party damage cover, you still need to get insurance at the border.
- The cost of it is around AED 90 for 5 days.
Agency Repairs Cover
Under the comprehensive policy, your car is entitled to agency repairs for up to 5 years which may vary depending on the insurer.
You can get your car repaired at an authentic dealer’s workshop for up to 5 years after the manufacturing of the car.
However, if your car is older than this then you will have to pay a slightly higher premium to get this coverage.
This cover is very important for people in the UAE as they usually want to get their cars repaired at the dealer’s workshop rather than the garage repair.
Thus, one needs to understand all the provisions of their policy as some policies only provide garage repair coverage.
Off-road coverage means that your vehicle can be insured for travelling on unmarked roads either paved or not paved.
This does not include activities like Dune travel or Wadi-bashing. Even though these are popular tourist destinations. Motor insurance in Dubai is very strict about their coverage.
This cover is only provided for 4WDs such as Land Cruiser, Jeep and Prado.
Thus, to get off-road coverage provision included in your policy one needs to pay a higher premium and a compulsory excess of AED 1,500.
The Vital Role of Age
The age of the car and the insurance holder both are important when it comes to motor insurance in Dubai.
Some companies even deny insurance services for cars that are more than 10 years old.
The age of insurance policyholder is important as companies calculate the premium based on age, gender and driving history of the policyholder.
Some comprehensive plans provide windscreen coverage for AED 3,000.
If it is not included in your plan then you can contact your insurance provider and ask for any add-ons.
Motor Insurance in Dubai and No-Claim Bonus
If you haven’t been in any accidents recently and thinking to renew your plan then you should definitely ask your insurer to provide you with a no-claim certificate.
On the renewal of a claim-free policy year, you get a discount known as no-claims bonus.
This bonus could help you to get even up to 40% discount on the policy premium.
Immigrants could also avail this service in the UAE. They just need to get a no-claims certificate from their home country.
Personal Accident Coverage
Personal accident coverage of around AED 2, 00,000 can be chosen for the driver and passengers while applying for the insurance plan.
However, doing so will increase the premium of the policy.
Usually, the rates to be paid are additional AED 60 for providing coverage for driver and AED 15 for each extra person to be covered.
Third-Party Liability v/s Comprehensive Policy
It is a crime in the UAE to drive around without third-party liability insurance and it can cause you to pay heavy fines.
It is the minimum requirement as per the law of UAE.
If you get into an accident with a third party and bare any harm or damage then the insurer of this party will be responsible for paying the costs of your damage repair or treatment.
In worst-case scenarios, TPL also covers for the bodily injuries and death of the third party caused by the insured.
Comprehensive policy not only provides coverage against third-party liability but also provide you cover against your own damages and loss.
Similarly, you can include additional insurance services against events like theft, natural disasters, fire and emergency medical assistance.
Many people make sure that the premium they are paying includes compulsory excess while the full value of the car is covered.
Compulsory excess changes according to the price and model of the car. This is the major reason why many insurance providers encourage it.
For example, for Nissan Sunny 2009 the voluntary excess will be around AED 200 whereas for a new Honda Accord it will be around AED 300.
Motor Insurance Checklist will help you choose the coverage plan for yourself.
Keep this information in mind when selecting a plan so that you know what to expect.
Always go for the plan that adequately caters your needs and requirements.
Having an inadequate plan puts your financial security in jeopardy.
It is suggested to choose a plan that provides a maximum buffer to your financial security at the most reasonable rate of insurance premium.
Hence, you can always go for add-ons to get the benefits that suit your requirements.
Originally published Nov 15, 2020 00:16:00 AM, updated May 18, 2021