Motor Insurance Dubai – A Lawful Guide
Laws on motor insurance in Dubai have been modified over the period of time in order to promote safe driving and lawful compliance of isnurnace policies.
The UAE law requires you to have your car insured if you own a vehicle. It doesn’t matter if it is a used or new car. As the law has made it compulsory, many people buy motor insurance in Dubai just to comply with the law.
People often go for the cheapest policy available, without having a complete understanding of its terms and conditions. And when they realize their mistake it’s too late to give up on those policies.
However, the process of choosing the right insurance company and policy could be an overwhelming experience. There are many insurance providers present in the market.
Choosing the right motor insurance policy is essential as it provides protection in case of any unfortunate incidents.
Here are the basic steps that you need to follow while selecting the best suitable policy for yourself.
Type of Motor Insurance in Dubai
There are different types of motor insurance policies available that vary from each other based on the benefits that each policy provides.
In order to know the right type of policy for yourself, you need to know the basic requirements and the risk factors that are covered.
As evident from the name, this type of policy provides wide protection coverage for your vehicle.
In some cases, the banks make it compulsory to get this type of motor insurance.
If the car is involved in an accident, the comprehensive insurance policy covers the damages to your car as well as the other cars that were part of the accident.
This type of policy also helps in situations where the car got damaged without collision. In cases of fires, theft or vandalism you can file the claim with the insurer.
Third-party liability insurance
This is a very basic type of policy which does not provide protection for your own car in case of an accident.
It also does not cover the medical bills if the passengers of your own car sustain any injuries.
The owner of the policy has to pay for it themselves.
If you own this policy, the insurer will only pay for the damages to the other car involved in the accident and its passengers.
While buying this policy, it may seem like an economical choice as the premium is low.
But in reality, having this type of motor insurance in Dubai could prove to be a very expensive choice.
The policy does not cover even the basic damages to your own car in case of an accident.
Given the risk of accidents in the UAE, it is not an ideal option.
Don’t Settle on a Single Quote
While choosing an insurance policy, analyze multiple alternatives available and then select the suitable option.
The premium and coverage vary from company to company and policy to policy. At least consider a few options before finalizing one.
You can check the updated quotes from different insurers online.
If you did not get into any recent accidents during the term of your previous policy then ask your insurer for a no-claim certificate.
This will help you to get a discount on the new policy you’ll be buying.
Comparison of Motor Insurance Quotes in Dubai
It is really essential that you completely understand the terms and conditions of the policy that you are buying.
Understanding the inclusions and exclusions is important.
If you buy a policy with a lower premium and later find out that it does not provide the coverage for your particular needs then that is just an added expense from your own pocket.
No policy is the same. None provide the same set of protection. Some motor insurance policies might be offering a cheaper premium but they might not cover for situations like driving across the border of UAE.
Therefore, you have to make sure that you choose the best price available that covers your needs and requirements.
Choose the Right Add-Ons
Not all policies provide all types of protection coverage. You might need to get some additional add-ons.
Choosing the right add-ons is a very critical step as each add-on will come with an increase in your premium.
Thus you have to be sure that you only select the ones that are suitable for you before you buy the policy.
This add-on is perfect for roadside emergency situations like towing or repair if the car breaks down or if it runs out of fuel during an important trip.
Everyone should have this insurance cover added to their policy.
Agency repairing services
Some people are not comfortable taking their cars to local mechanics for repair services.
They like to take their cars to the official dealers only if a problem occurs. Although agency repair might be considered of higher quality it is comparatively expensive too.
Therefore, this add-on is suitable for people who prefer to get their cars serviced from authenticated dealers.
Coverage across the GCC
This coverage is needed by frequent travelers to the GCC nations. Some countries like Oman do not let outsiders inside without a standard GCC or international insurance.
If you often travel to GCC countries, you should consider having insurance coverage at all times. Even if it is not required by the country’s law.
If your car is in the workshop for repair, some companies offer a rental car temporarily.
Personal accident cover
Most insurance policies only provide basic medical assistance in case of damage. So, in case of an accident, this add-on will cover for the serious bodily injury or death of the driver.
Personal accident cover for passengers
This will provide coverage for any harm to the passengers like serious bodily injury or death.
The documents you’ll need
After taking the decision of which motor insurance you are going for.
You need to keep the copies of the following documents ready and provide them to your insurance policy provider:
- Driving license
- Residence visa
- Vehicle registration card
- No claim certificate if it is
applicable to your policy.
Choosing the right motor insurance is not as difficult of a task as it might sound. If you follow the above-mentioned steps then you can easily select the right policy.
The idea is to not exceed your budget while getting your needs and requirements covered.
This balance can be achieved if you have a clear understanding of what you need and what is being offered.
Getting legitimate car insurance that covers your needs, all the while not costing you a fortune, just needs a little research on your behalf.
Originally published Nov 14, 2020 15:17:00 PM, updated May 04, 2021