Car insurance in the UAE is also called Motor insurance. The insurance is a method to avoid financial downfall in case the vehicle gains any harm due to accident, theft, or is used to the point of becoming unusable. By having a car insurance policy, you will have to pay yearly premiums to cover damage related expenses.
Car insurance companies in Dubai pay the whole or majority of the expense which is involved in damage fixing. The car is secured against yearly premiums which have to be paid. But these premiums rely on various factors such as driving experience, age of the vehicle, car price, age of driver, insurance category, driving style, history of vehicle, car model and more. According to the RTA law, it is obligatory to have car insurance in the UAE. If you want to buy used cars in Dubai, head to CarSwitch website.
Types for car insurance in UAE
There are 3 main types of car insurance in Dubai based on the coverage being given by the insurance company:
Third party liability
The insurance coverage in Sharjah and the remaining UAE have to cover for damages inflicted on the third party in an accident where the driver is at fault. This insurance covers the damage which have been inflicted on the third party vehicles along with the physical harm caused by the third party.
But this category of car insurance policy does not cover robbery, harm caused to you or injuries caused by you in an accident. Third party liability insurance is a simple, entry level plan given by the insurance companies.
Comprehensive
This policy is made to guarantee wide coverage for the vehicle and protect the vehicle in most of the aspects. This insurance covers the vehicle against harm inflicted by an accident (irrespective of whether it was caused by you), damages inflicted on your own vehicle due to natural disaster, third party liability costs, robbery and man-made disasters such as fire.
There are also extra advantages given such as new vehicle replacement, personal accident cover, emergency costs cover and so on.
Temporary
This insurance covers the vehicle against any harm, robbery and accident for a limited span of time. This time period ranges from a few hours to a few months as per the need. Vehicle owners who are not searching for car insurance for the whole year can benefit from the temporary car insurance in the UAE. It is a valuable way of shielding the vehicle if you have rented a car, shifting somewhere or learning to drive.
Advantages of car insurance in the UAE
Safety from legal matters
Since having car insurance is mandatory in the entire UAE, if you still choose to not have it, it will result in a fine of AED 5,000, add 4 black points on the license and the vehicle will be confiscated for a week.
Therefore, the greatest advantage of having car insurance in the UAE is that you will become a law abiding citizen and you will be safe against any future legal fights which can arise due to mishap or accident.
Protection from third party lawsuits
Any glitch or an unexpected event can make you lose control of your vehicle. No matter what the cause is, if the car is involved in an accident on your fault, you will be held liable and accountable for the mishap. Car insurance gives coverage for third party damage inflicted during the accident. Moreover, it shields you from third party liability against physical injury, death, temporary or permanent disability. The third party damage is restricted to a specific amount according to insurance, the compensation cap for third party physical harm or injuries is not limited.
Improved financial stability
Who doesn’t want their own vehicle? But the reality is that cars require lots of maintenance, expenses and responsibility. However, if you have backed yourself with car insurance, you can be at peace mentally as the insurance company will share most of these responsibilities.
Accident coverage
Having car insurance is not just about protection for vehicles. This is because the majority of insurance companies also go as far as to offer coverage for the passengers and driver as well. Therefore, you do not have to fret about the vehicle damages and neither of the injuries which might incur to the passengers or you.
