Traveling in the UAE may have its challenges, especially when you consider the possibility of car accidents or breakdowns. The good news is that having car insurance in UAE is mandatory by law. This guarantees a secure experience, whether you’re bringing your car into the country or buying a new one.
Car Insurance in UAE
Car Insurance in UAE
Accidents can happen unexpectedly, especially if you’re not fully focused or the car behind you isn’t keeping a safe distance. Driving in the UAE becomes less intimidating with the right insurance. The Roads and Transport Authority (RTA) mandates car insurance in UAE. Driving without insurance could lead to a penalty of AED 500, four black points, and a seven-day vehicle retention period. Black points are penalties for traffic violations, and if you accumulate 24 points within 12 months, your driver’s license may be suspended.
Having at least third-party liability insurance is a requirement. This insurance covers third-party claims in case of an accident. However, many people in the UAE prefer the more comprehensive insurance policy, which is pricier but also covers the loss or damage to your own vehicle.
Insurance providers in the UAE offer both one-car and multi-car policies, focusing on covering the car rather than the driver. It’s important to note that some companies may only provide coverage to those with valid UAE driving licenses. So, if you borrow someone’s car with an international driver’s permit (IDP), the insurance provider may not offer any coverage.
International Car Insurance
Many companies in the Gulf States provide international car insurance policies, making it easy if you plan to drive to Oman or Qatar for work or a weekend getaway. Before you start your journey, it’s a good idea to review your policy coverage.
Here’s a helpful tip: If your international car insurance includes coverage for the UAE, make sure to note down the emergency or claims contact numbers. Have all the necessary information ready in case of an accident.
Choosing a Car Insurance Company
When searching for a trustworthy insurance company, compare various providers based on their services and costs. Since there are no reliable comparison sites available, you’ll need to conduct your own research.
Here are some excellent options to begin with:
Selecting a Car Insurance Provider
Picking an insurance provider involves more than just the car you drive and the premium you’ll pay. When comparing insurers, be sure to think about the following:
Reviews: Check if the company has positive reviews from customers.
Recommendations: Ask your friends if they recommend the insurer based on their experiences.
Coverage: Understand what the policy covers and if it aligns with your needs.
Add-ons: See if the insurer offers additional options that suit your specific situation.
Claims Process: Consider how easy and straightforward their claims process is.
** Loyalty Rewards**: Find out if the provider rewards long-term customers with bonuses or rebates.
Different Types of Car Insurance in UAE
There are two important types of car insurance in UAE : Third-Party Liability and Comprehensive Insurance.
The cost of these insurances is determined by various factors, such as:
Car Details: The model, make, and the year the car was made.
Driver’s Information: Age and driving experience of the person driving the car.
Claim History: If the car or driver has made claims before.
Younger drivers and those with less driving experience might pay more because they are seen as higher risk. Similarly, people with new or sports cars and those with less clean driving records might expect higher fees.
You may also use UAE Car Insurance Calculator.
Third-Party Liability Insurance (TPL)
According to the law, you must have Third-Party Liability (TPL) coverage. This insurance protects you from claims made against you, like injuries, loss of life, or damage to other people’s vehicles and property. It’s essential to know that TPL doesn’t pay for your car repairs or medical expenses.
Here’s an example: If you’re in an accident, your insurance will cover the costs of fixing the other person’s car and their medical bills, but not yours. If both parties are at fault, the other person’s insurance will take care of your bills.
TPL is a good option for budget-conscious drivers because it’s more affordable. It becomes the only choice if your car is seven years or older.
Comprehensive Insurance (CI)
In the UAE, lots of drivers choose to have a pricier Comprehensive Insurance (CI) policy. This type of insurance not only covers claims from other people but also takes care of damages to your own vehicle. With CI, you get broader protection, including coverage for things like fire, burglary, vandalism, and theft. Some insurers might even offer agency repair services for cars that are up to 2 years old.
Like Car Insurance in UAE, You may also like to read about Life Insurance in UAE.
Enhance Your Car Insurance in UAE with Useful Add-Ons
For extra protection in the UAE, drivers can add special features to their insurance policies. Here are some popular choices:
Theft and Fire Coverage:
- Protects your vehicle from fire, natural disasters, theft, or vandalism. Usually part of CI insurance but can be added to TPL policies.
Roadside Assistance:
- Offers help in case of a roadside breakdown, including services like towing, tire replacement, and battery jump-starts. It can be added to both TPL or CI policies depending on your insurer.
GCC Coverage:
- Extends your coverage to GCC member countries (like Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia). You can add this to either TPL or CI policies, depending on your insurance provider.
Personal Effects Coverage:
- Safeguards valuable items in your car from theft or damage. Depending on your insurer, this add-on is available for both TPL and CI policies.
Replacement Rental Car:
- Allows you to rent a car for free or at a reduced rate when your own vehicle needs extensive repairs. This add-on is usually exclusive to CI policies.
Off-Road Coverage:
- Protects against damages caused by off-road driving, such as dune-bashing. Some insurance policies include this, while others offer it as an optional add-on.
Rewards and Consequences in Car Insurance
Sometimes, insurance companies offer rewards or impose penalties. For instance, if you haven’t been in an accident in the past year, your insurer might reward you with a No Claims Bonus, which is like a discount on your premium. On the flip side, your premium could increase if you’ve been in an accident recently.
Since every insurance company has its own rules, it’s a good idea to contact them directly to find out if there are any bonuses you might be eligible for.
Getting Car Insurance Made Easy
Applying for car insurance in UAE is a simple process, and while many prefer to do it online, some companies might ask you to visit their office. You can confirm the application process with your chosen insurer. The required documents usually include:
- Driver’s License
- Valid Passport or Emirates ID
- Valid Visa (for international individuals)
- Car Registration Details
Once your application is approved, you’ll get your policy number and insurance card. Remember, it’s crucial to keep your insurance card with you and not leave it in the car to safeguard against break-ins or theft.
Steps for Making a Car Insurance Claim
If you find yourself in an accident, the first priority is ensuring everyone’s safety. Call 998 for an ambulance if anyone needs medical help. Don’t forget to call the police at 999 because a police report is essential for filing an insurance claim.
Here are crucial steps for making an insurance claim:
Collect Contact Information:
- Write down the contact details of the other person involved in the accident.
Take Photos:
- Capture pictures of the vehicles involved and the damages caused.
Remember, your insurance provider can provide more details about the claims process and guide you on what to do next.
Roadside Assistance
When your vehicle breaks down, don’t worry – you can call for roadside assistance. Keep in mind that your insurance might cover specific breakdown services.
Here are some companies offering roadside assistance in the UAE:
AAA:
- Well-known for roadside help, AAA offers 24/7 support for issues like flat tires, lock-outs, and dead batteries.
- This company provides various services for stranded drivers, including towing, pull-outs, flat tire assistance, and fuel delivery.
International Motoring Club (IMC):
- Call IMC for support if you’re stranded, covering services like towing, flat tire help, and lock-outs.
- This company assists drivers with towing, flat tire repairs, and jump-starts.
Feel free to reach out to these companies to learn about their prices and conditions individually.
Changing Your Car Insurance (Canceling or Switching Providers)
If you’re thinking about canceling a car insurance contract or changing providers in the UAE, there are a few things to consider. Cancelling a contract before it ends might come with a penalty, so it’s essential to call your insurer to understand the fees and notice period.
Because car insurance is mandatory, most people switch providers instead of canceling. When you’re exploring new policies, ask about the cancellation process. Often, your new provider can handle the communication with your old company, making the switch smoother for you.
Filing a Complaint about Insurance
If you’re unhappy with how your insurance is handled, you have options. You can file a complaint online with the Insurance Authority, a government agency that deals with issues related to insurance companies.
Before taking that step, consider making a complaint directly to your insurance provider. Many companies have a process for addressing grievances and will work to resolve the issue amicably.
