Easy Guide To Picking Car Insurance In Dubai and UAE

An Easy Guide to Picking Car Insurance in Dubai/UAE

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If you live in Dubai or UAE, getting your vehicles insured is mandated by law. It means that before you can start revving your engine, you need to have at least a third-party liability level coverage. 

In any case, if you’re not sure where to begin with getting insurance here, you’re on the right page. We’ve created this easy guide to help you pick car insurance in Dubai/UAE. 

Your Insurance Options in the UAE

Let’s start with a bit of reassurance as to your options. Currently, 62 insurance firms are operating in the UAE – 35 of those are national insurance providers, while the remaining 27 are foreign insurance companies. 

Since the country has a large insurance market, you will have a wide range of choices. Whether you wish to get a health insurance policy or pair your car insurance with a travel insurance plan, you will not run out of options. 

Required Documents for Car Insurance

Next, what about the things insurance companies will ask for? Well, listed below are the commonly required documents for buying car insurance. 

If you plan to buy a policy online, the insurance company may ask you to submit the details with or without electronic copies/ scanned versions of the required documents.  

However, if you opt to do the transaction offline, you must bring the documents listed below. Most companies will accept copies of the documents. 

Note that the documents needed for the application can still vary depending on your chosen provider, so it’s best to contact them beforehand. These are the most commonly required ones, though:

  • Vehicle’s registration details (registration card, registration documents, RTA Certificate of Transfer)
  • Personal details and documents (driving license, date of birth, address proof, phone number, etc.)
  • Copy of passport or visa page (for expatriates)
  • Copy and original Emirates ID (for UAE Nationals)

Types of Car Insurance Available in Dubai/UAE

As we’ve mentioned above, there are numerous insurance providers and offers available in the UAE. That’s why picking car insurance can be a bit daunting for some. 

You see, aside from varying requirements, the types of coverage offered can add to the confusion as well. 

For this reason, we included a table containing the common types of car insurance policies offered in the UAE, along with the coverage they provide. 

Third-Party Liability Insurance• Property damage/liabilities caused by the insured vehicle to a third-party vehicle

• Bodily injury or death because of the insured vehicle

Third-Party Liability Insurance with Theft and Fire Coverage• Damage caused by fire or theft to the insured vehicle

• Coverage for injured passengers of the insured vehicle

• Property damage/liabilities caused by the insured vehicle to a third-party vehicle

• Bodily injury or death because of the insured vehicle

Basic Comprehensive Policy• Damage/liabilities caused by accident, theft, lightning, fire, vandalism, and other possible causes to the insured vehicle

• Property damage/liabilities caused by the insured vehicle to a third-party vehicle

• Bodily injury or death because of the insured vehicle

• Coverage for injured passengers of the insured vehicle

Comprehensive Policy• Damage caused by natural calamities including landslides, storms, tornados, earthquakes, etc. to the insured vehicle

• Damage caused by theft, fire, or vandalism to the insured vehicle

• Damage caused by self-ignition or explosion to third party vehicle and insured vehicle

• Roadside assistance such as towing, flat tires, mechanical repairs, emergency gas delivery, accidental lockouts, etc.

• Lost/damaged personal items while in the insured vehicle due to theft, fire, or accident

• Bodily injury or death because of the insured vehicle

• Coverage for injured passengers of the insured vehicle

How to Purchase the Best Car Insurance

How to Purchase the Best Car Insurance
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Now that you understand the common coverage offered, it’s time to know the important things to bear in mind before you actually purchase a policy. 

Select the most suitable plan for your car and budget.

Car insurance providers know what vehicle makes and models are more or less prone to incur claims.  

For example, older vehicles tend to have costly premiums and low payouts because they are more prone to break down or face other issues. 

Due to that, if your car is more than a decade old, we recommend that you stick with a third-liability policy. With this plan, you can ensure that the insurance cost will not be higher than your vehicle’s value after an accident. 

On the other hand, a comprehensive policy’s annual premium can cost between 1.25% to 3% of your vehicle’s value. 

So, if you lease or finance your vehicle, or you have a  new car that’s in good running condition, this type of car insurance is ideal because it pretty much covers every unexpected damage. 

Note that many car owners will lean to choosing a third-party liability insurance plan because it’s usually the most affordable option. However, a comprehensive insurance plan is a better pick in our opinion because it offers better coverage and protection. 

Choose the insurance provider with the best deals. 

Picking a provider that offers a customizable plan and has an excellent claim settlement ratio is essential because you’re likely to disburse a substantial amount of money for the policy. 

With this in mind, we suggest that you look for a reputable insurance provider in the UAE with at least a decade of proven expertise in the business. Their longstanding history is an indicator that they’ll still be around when you require their help. 

Look into their requirements, coverage, offers, policies, and customer reviews to know how they provide service, especially during the claims process. 

Of course, to save yourself the trouble, you can also just check out our reviews of the best car insurance companies in Dubai

Determine the sum insured and inclusions of the policy. 

Before you decide to purchase a car insurance policy, make sure to check the sum insured and inclusions so you will not be confused when you’re about to make a claim.

That said, if you have a new car, its depreciation value is lower, so the sum insured can be closer to your actual purchase price. 

However, if you own an old car, its depreciation value is higher, so there’s a chance that it will be evaluated at a lower price. 

Among other things, you also have to determine the coverage offered by the policy you plan to purchase. Relying on the insurance provider’s verbal promise is not recommended, so it’s best to cross-check all the inclusions in the actual policy document – and read the fine print! 

Watch out for policy exclusions. 

In simpler terms, policy exclusions are things not covered by the insurance plan. Just like the inclusions, you can also find the exclusion section in the document. 

Common exclusions in car insurance policies include:

  • Driving without a valid license
  • Driving under the influence
  • Payment lapses
  • Going beyond the geographical area limits

Make sure that you clearly comprehend the risks or events that are not covered by your plan so you can avoid them.

Compare quotes from different car insurance providers. 

To ensure that you’ll get the best deal for you and your vehicle, take the time to compare car insurance plan coverage and quotes from different providers. 

Most of them offer free quotes and consultations online, so you can conveniently determine which among them is worth considering. 

Perks of Having Car Insurance in Dubai/UAE 

Even if auto insurance is mandatory, its importance is still not obvious for some people. To give you a view of how it provides a safety net to the policyholder, here are some perks of car insurance. 

1. Protection from theft and damage

Did you know that hundreds of cars get stolen yearly? That’s one big reason to insure your vehicle. 

Once your vehicle is insured, the provider can cover any stolen items in your car, including the car itself. Aside from your stolen belongings, they also provide coverage for damage caused by theft, including broken windows, locks, and ignition systems. 

On top of that, comprehensive car insurance policies also offer coverage for damage caused by accidents, natural calamities, fire, and other possible causes. You can have a financial cushion that can help cover expensive claims and expenses through this. 

2. Personal accident cover 

In addition to providing coverage for your vehicle, some plans can also offer you, your passengers, and other people on the road coverage. Through auto insurance, you can take care of any bodily injury costs that may arise if you’re involved in an accident. 

3. Saved time and effort

Handling car troubles and accidents can be a time-consuming process. Without proper coverage, you’ll have to deal with the negotiations and manage the overall costs of damage by yourself. 

On the other hand, if you have an excellent car insurance policy, you’ll just have to contact your provider to file a claim. Once done, the company will support you with the towing, repairs, replacements, and costs covered by the policy. 

4. Peace of mind

Perhaps one of the best perks of auto insurance is peace of mind. 

No matter how careful you are on the road, other drivers can still make mistakes. That mistake can also be your problem, so it’s best to be properly insured. 

FAQ About Car Insurance Policy in Dubai/UAE