Coverage Plans In The UAE
Coverage plans are one part of auto insurance that always entices the client the most.
The commonly discussed and purchased insurances in the UAE are comprehensive and third-party liability insurance.
It can be a little tiresome process. Until or unless you have the right information and criteria to evaluate, things might go a little smoother for you.
You should know what are the best coverage policies for you in time of getting new auto insurance or renewing your insurance policies.
We are almost familiar with the terms of comprehensive car coverage and third-party liability car insurance.
But to what extent are these coverage plans beneficial to our car insurance needs or which one is the most preferred one in the auto protection insurance market?
This is another mystery that we are about to reveal.
About the Law
The abiding laws and procedures regarding auto insurance are quite different in the UAE as compared to other places.
By the mandatory UAE law of insurance, if you have any type of vehicle you must get your car insured as soon as possible, especially in this time of uncertainty like accidental damages, theft, and fraud
Therefore many auto insurance companies have come up with their extensive coverage plans with added deals and packages to attract more target clients.
The general audience usually have a lot of questions and concerns regarding this topic but the most asked questions are:
No matter how good a driver you are at some point, in our life we have been victims of an errant stone that caused a crack in our car windshield.
And depending on the type of insurance coverage you had, this damage may or may not have been covered.
So these comprehensive and third-party insurance and other plans make sure to protect you from such events and your money.
It can turn out to be a head-crushing process and very hectic too if you don’t have the relevant information.
But not anymore as BuyAnyInsurnace is always happy to remove your ambiguity thought their expert’s view and informative blogs so let’s dive in.
Auto Insurance Coverage:
Two are the most basic auto insurance coverage follow in the UAE
1) Comprehensive Insurance
2) Third-party Insurance.
Comprehensive Vs Third Party Auto Insurance:
Legal liability Yes Yes Car Replacement Yes Yes Fire Yes Yes Theft Yes Yes Emergency-Accommodation, Transport, and Repairs Yes Yes Damages/Losses to own car due to an accident Yes NO Intentional Damage Yes NO Storm or Flood Yes NO Counselling Services Yes Yes Extra protection with customize add-ons Yes No
The items can be added and subtracted depending upon the laws and terms and condition of the provider. There can be other items too offered by these coverages.
Now let’s discuss each precisely and focus on their own sub-categories explained below;
1. Third-Party Liability Cover
This coverage means, if an accident is caused by you then if you’re one having third-party liability coverage will pay for the other person’s expenses. These include any damage or medical bills.
In most states, third-party liability coverage is mandatory. Bounded by-laws the drivers have to purchase at least the merest amount of liability set by the UAE government.
Third-party liability coverage has the following segments:
a) Bodily injury liability
- It covers the cost/damage related to other people’s injuries if you cause an accident.
- Offers other party payment to medical bills
- You can be taken to court by the injured party or their insurance company. Bodily injury liability coverage may help pay for your legal fees.
b) Property damage liability
- This covers the cost of another person’s property damage you caused while driving.
- Property damage liability coverage usually does not cover damage to your own vehicle. You may want to consider other coverages packages.
c) Third-Party Fire and Theft :
Third-party, fire, and theft insurance facilitate you for any damage/ violation to a third party or their property with whom you are involved in an incident, while also covering your own car if it’s damaged by fire or stolen.
- Replacing your car if it’s stolen
- Damage that happens as the result of an attempted theft like broken door locks or stolen radio.
- Claims on accidental fire
d) Uninsured & Underinsured Claim/Coverage
This type of motorist protection coverage will facilitate your medical expense or car repair and maintenance if you’re hit by a driver who doesn’t have car insurance.
Where in an underinsured car insurance exhibit that If your car is hit or damaged by an underinsured driver, then there are two scenario
- One that the driver owns auto liability car insurance firm paid the expense, but his/her limits are not enough to cover your medical/other bills.
- Second, the driver won’t have any car insurance then you have to pay your own bills.
2. Comprehensive Coverage
Comprehensive coverage, also known as full coverage insurance.
By the name, it indicates it covers your vehicle major to minor damages from things.
Those who get comprehensive coverage will be protected from
- Natural disasters (like a hurricane or a tornado)
- Falling objects
- Damage done to your car by animals
- A civil disturbance (like a riot that results in damage or destruction of your car)
But there are some straight forward expenses that comprehensive insurance does not cover,
- Your car gets damaged from a collision
- Another person’s vehicle gets damaged from a collision
- Your or your traveller’s medical fees after an accident
Comprehensive coverage bears the covered risk, also it pays to repair or replace your vehicle (up to the vehicle’s actual cash value)
You have to pay the initial amount on your own and later on, your insurer reimburses you for a covered claim.
a) Collision Coverage
Collision insurance is a car claim that is made when your car is hit or damaged by another car or sharp object.
When you get this coverage the provider will help pay to repair or replace your car.
Things that are covered by the collision policy:
- Damage caused by the collision with another vehicle
- Dent or damaged collision with an object, such as a fence or tree
- A single-car accident that involves rolling or falling over
Other things that are not covered by the collision policy;
- Damage to your vehicle not related to driving (examples: storm or theft)
- Damage to another person’s vehicle
- Your or your traveller’s medical fees after an accident
b) Medical Payment Coverage
This insurance coverage will facilitate you and your family member’s medical bills, after the accident of your insured car.
Covered costs may include hospital visits, surgery, X-rays and more.
c) Premium Comprehensive Policy
Most expensive yet loaded auto insurance policy in the UAE. It almost covers everything.
The insurance provider offers this policy to their special clients who are the owner of sports cars or other expensive luxury cars.
Often people made mistake by opting out those plans initially that do not provide full coverage to the basic requirement of the car.
Now serval insurance providers in the UAE are formatting the packages at a reasonable price that are sustainable and lucrative in nature.
You can check this insurance provider on our website who pledged to give you the best services and policies in the market.
Originally published Oct 16, 2019 11:36:19 AM, updated May 18, 2021