Everything you want to know about Car Insurance in Dubai

By Sakshi Srivastava - 25 Feb 2022 Last Updated: 19 May 2022
Everything you want to know about Car Insurance in Dubai

Car insurance provides reassurance from insurance providers that your investment in the vehicle is secure if you are involved in an accident or the vehicle is stolen, damaged, or vandalized for a variety of reasons. Instead of paying out of cash, the insurance company pays the costs of losses in exchange for a set annual payment.

What is Car Insurance?

Car insurance in the UAE is a sort of general insurance that works to protect the car, passengers, and you, the driver, against damage and loss in the event of an accident. Driving can be soothing, but it is not always completely safe. Going out on the road in your prized automobile exposes you, your passengers, and other drivers to the possibility of accidents, which are sometimes inevitable. This is where vehicle insurance comes in to put your mind at ease about the safety of your vehicle. For car insurance Dubai, you pay an annual premium to the insurance company. In exchange, it accepts the obligation and risk of handling the repair expenditures in the event of a partial or entire loss of the car due to an accident/collision/theft.

Type of Car Insurance in UAE

Car insurance in Dubai is classified into three types: comprehensive and third-party liability car insurance, as well as temporary car insurance for short-term coverage. These three types are distinguished by the type of coverage provided, the scope of the plan, and the duration of the plan. At all times, you must have at least a basic level car protection plan for your vehicle. Any of the three types of Dubai auto insurance available can meet that criteria.

Let's have a look at several types of automobile insurance                                                                                                

Third Party Liability Car Insurance

A third-party liability car insurance coverage covers all third-party claims in the event of an accident in which you are at fault. It is the most basic level of vehicle protection available anywhere in the globe. A third-party liability vehicle insurance policy does not safeguard or cover your vehicle against any damages incurred in an accident. All automobiles in the UAE are obliged to have at least third-party liability coverage at all times.

Comprehensive Car Insurance

A comprehensive car insurance policy is intended to protect you from third-party liability claims, as well as damages to your vehicle and injuries to the driver. A comprehensive car protection plan can provide coverage for damages caused by accidents, fire, natural disasters, man-made disasters, theft, and collisions, depending on the coverage scope of the plan. Comprehensive auto insurance in UAE may provide you with whatever level of coverage you require, as well as the ability to customise the benefits.

Temporary Car Insurance

Temporary or short-term car insurance policies provide a quick solution to your driving and vehicle protection needs. This sort of car insurance Dubai includes the same coverage as third-party vehicle insurance or comprehensive vehicle insurance plans. The duration of coverage for temporary auto insurance might range from one day to a few months. If you need to drive someone else's car for a bit, this is the best auto insurance in UAE to get.

What is the distinction between Comprehensive and Third Party Liability Car Insurance in Dubai?

The distinction between a comprehensive insurance plan and a third-party liability automobile insurance plan is as follows.

Third-Party Liability Insurance Plan

  • Vehicle insurance plans purchased to cover third-party liability are designed to cover bodily injuries/death of a third-party as well as damage to the third-property party's caused by the covered vehicle.
  • Under the third-party plan, the insured vehicle receives no insurance coverage in the case of a loss or damage. According to UAE law, car owners are required to get auto insurance plans for their vehicles in order to cover any third-party liability.

Comprehensive Insurance Plan

  • Comprehensive insurance plans provide comprehensive insurance coverage for third-party damages or losses, as well as personal damages.
  • It protects against burglary, theft, fire, accidental collisions, self-ignition, lightning, external explosions, and other perils.

Advantages of Dubai Car Insurance

Apart from meeting the UAE government's necessary criteria, having a good and cheap car insurance plan can be a helpful choice in a variety of ways, as noted below

Complies with legal requirements

The first advantage of purchasing a vehicle insurance policy is that you will be protected from any legal consequences relating to traffic regulations. If you do not have valid car insurance in the UAE, you might risk a fine of up to AED 500 as well as four black points on your licence. In addition, the car may be confiscated. Having a suitable and valid car policy, on the other hand, can save you from this hardship.

Protection against Third-Party Lawsuits

Third-party responsibility lawsuits are the most significant financial setback that might occur as a result of an accident. If you caused the accident and do not have a protection plan to cover the damages, you will bear full responsibility. You will not only have to pay for vehicle repairs, but you may also have to pay third-party claims for vehicular damages and injuries. At the very least, a decent vehicle insurance Dubai can protect you from this situation.

Financial Stability Improvements

Having car insurance in Abu Dhabi to rely on gives you more financial stability. If you are at fault in an accident, your car insurance, whether online or offline, will cover the damages to your vehicle as well as third-party liabilities. If the other motorist is at fault, the losses will be recovered by the other driver's insurance company. In addition, if the other driver is underfunded or uninsured, your protection plan may be able to assist. As a result, you are protected from the majority of potential circumstances.

Coverage for Vehicle Loss or Theft

Another major advantage of having a car security plan is that you will be protected against theft as well as total vehicle loss. This means that if your automobile is stolen or damaged in an accident, the insurance company will compensate you for the car's current market value.

Documents Required to Purchase and Renew UAE Car Insurance

The whole set of paperwork required to purchase or renew your car insurance in the UAE is provided below at any time. Online purchases may simply require you to enter your information, with or without scanned copies of the documents. The offline purchase will required the presence of the originals as well as a few duplicates, as specified below

  • Your vehicle's registration information, including the registration number when making an offline purchase, originals are necessary.
  • Engine number, chassis number, and other vehicle information
  • Personal documents and information about the driver, such as driving licences, address proof, phone number, and so on.
  • A copy of your passport
  • A copy of your resident visa
  • If you have a previous car protection policy, provide a copy and the original Emirates ID number.

How to Make a Car Insurance Claim in the UAE?

The claim process for your vehicle insurance plan is essentially the same for all UAE insurers. The following are the essential steps you must take to file a car insurance claim in the UAE against your Dubai car insurance

  • Call your insurance company and inform them of the situation.
  • If the incident involved theft, an accident, a collision, or other similar types of damage, obtain a police report.
  • If you require towing assistance, use the roadside assistance number given by your Dubai car insurance.
  • Obtain a claim form from the provider, fill it out, and attach it to the police report, vehicle registration paperwork, and the driver's licence of the individual who was driving the vehicle.
  • Bring the claim documents to your insurance company's or the one assigned to you're nearest agency garage. There, submit the claim documentation.
  • The documents will be examined there, and an insurance company supervisor will inspect the damage.
  • Once all of these formalities have been completed, your claim will be authorized, and the garage will begin the repairs.

Conclusion

You can get affordable car insurance in Dubai and the UAE by comparing several policies at Dhanguard Aside from that, we make it simple for you to explore a website that compiles some of the best vehicle insurance Dubai has to offer, all in one spot.

For more information regarding the Car Insurance in Dubai contact to Dhanguard we will gladly assist you in every aspect. 

Buying Car Insurance is made simple and hassle-free with Dhanguard Motor Insurance service in Dubai, UAE. We provide you online Car Insurance service with the minimum possible trouble including paperwork & payments.

By Sakshi Srivastava

25-Feb, 2022

Motor Insurance Related FAQ

Frequently Asked Questions

  • What is a Vehicle Insurance Plan's Validity?

    An auto insurance policy lasts for a year and must be renewed every year. If you fail to amend your contract, you will be given a one-month grace period to renew your auto insurance policy. This ensures that your plan's status remains active.

  • Third-Party Liability Insurance: What Is It?

    If you purchase third-party liability coverage, you will be covered for losses to a third party if your car is involved in an accident. It offers compensation in the event of a loss of life, physical injury, or material damage to a third party as a result of an accident caused by your vehicle.

  • Is Car Insurance Needed in the United Arab Emirates?

    To legally drive a vehicle in the UAE, we must have Car insurance.

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