Things to keep in Mind while buying a Car Insurance in UAE

By Sakshi Srivastava - 30 Oct 2021 Last Updated: 01 Dec 2021
Things to keep in Mind while buying a Car Insurance in UAE

Dubai is one of the UAE's largest and wealthiest emirates. It is noted for its rich culture, delectable cuisine, opulent shopping centres, and high-end automobiles. On the streets of Dubai, you may see some of the most exotic supercars roaring. In the UAE, however, purchasing car insurance is not a choice but a mandatory legal requirement as stated in the UAE RTA Law rules.

If you bought a brand-new SUV beast or a mid-ranged hatchback from a bank or a car dealer, they would very certainly have included a car insurance package. Automobile dealers and banks sell automobile insurance with restricted coverage that may not meet your needs. To protect your prized automobile, you must obtain comprehensive car insurance, which will cover all costs in the event of damage or loss. The UAE's motor insurance industry is flooded with a profusion of providers who offer customised automobile insurance policies to fit all of the consumers' needs.

Given the deliberate thinking and the amount of investment that go into making a car purchase decision, vehicle owners should expect their vehicles to be insured against unforeseen dangers. Now that the need has been verified, the most difficult question that most car owners face is: what is the best method to proceed?

Whether it's a gleaming new machine or a vintage beauty, all vehicle owners must follow the law, which requires them to purchase motor insurance from a reputable service provider prior to registering the vehicle. Now comes the tricky part: how do you choose a vehicle insurance policy? Should you take the first one that is presented to you or select for the cheapest options on the market? What are the most crucial details to be aware of? For newcomers, all the jargon and technical words might be overwhelming. Finding the finest vehicle insurance in Dubai, on the other hand, is as simple as it gets.

Purchasing auto insurance can be perplexing and cause unease in the minds of many people all around the world. When it comes to obtaining the best auto insurance in Dubai, the UAE population is no exception, and why should they be when there are so many insurance firms, banks, and brokers to choose from? A consumer is expected to be cautious enough to thoroughly grasp the numerous policies offered by various service providers in order to ensure that the policy picked meets his or her needs. Dhanguard will guide you through the Process.

Important Point to keep in Mind

A consumer should think about two things before getting started:

  • The Cover Requirement 

A person's level of coverage requirement can be used to choose an insurance by incorporating vital features and eliminating those that aren't.

  • The Cover Risk Capacity

The level of coverage can be defined based on a user's subjective taste. For example, a person who believes the chances of something bad happening are slim would opt to keep the bare minimum coverage, but a cautious person would not want to take chances and would compare auto insurance in Dubai before purchasing an all-inclusive policy.

How to Choose a Right Car Insurance?

These are the points that should be kept in mind while buying right Motor insurance.

  • Don’t get overwhelmed

Sit back, take a big breath, and don't be daunted by the vast array of offers available around the UAE. You'll be offered with plenty of automobile food for thought from insurance firms and brokers, banks, and even car dealers eager to link you up with their preferred provider.

  • Don’t go it alone

The best choice is to speak with an independent financial consultant who can advise you on the best policy for you. This will guarantee that you have appropriate motor, liability, and accident coverage in place to protect you from claims originating from a car accident.

  • Understand the Maths

Premiums are determined by the year, make, and model of the vehicle, the engine size, the driver's age, claims history, and the vehicle's value. Rates of 2.7 percent to 7% percent a year could be available in the market, depending on the factors mentioned above. Reputable insurers' policies typically include 24-hour accident and recovery service, liability to family members, personal injury coverage for the driver, repairs at authorised dealers (depending on the vehicle's age), off-road coverage, and medical expenditures in an emergency.

  • Third Party only Insurance

This is a less expensive alternative, but it only covers third-party injuries or death, as well as damage to their vehicle or property. You and your vehicle are not covered by insurance. Most banks will want comprehensive coverage if you have taken out a loan to purchase your automobile because it covers the asset - in this case, your car - and they will require their name to be included as a mortgagor in the policy.

  • No-claim Discounts

Motorists who can provide an original no-claims bonus certificate from their prior insurance carrier may be eligible for a discount on their vehicle insurance premiums if they drive responsibly. The discount could be anywhere between 0% and 40%. This, of course, is contingent on your claim history.

  • Mind your Health

It's also a good idea to review your health insurance coverage. While comprehensive automobile insurance will cover you in the event of an accident, long-term injuries that require ongoing care are better covered by a separate medical insurance policy. The possibility of experiencing a permanent disability may prompt you to reconsider your injury insurance, which should pay out if you sustain an injury that stops you from working and earning at your previous level.

Keeping up with all Documentation work is a Good Idea

It goes without saying that insurance companies are extremely picky when it comes to documentation. Even a seemingly insignificant error can prevent applicants from obtaining insurance coverage. Insurers typically conduct a background check by requesting a series of documents as proof of identity and driving experience. These documents include the following:

  1. Copy of the applicant’s driving license;
  2. Copy of the applicant’s Passport and Visa page;
  3. Copy of the vehicle’s registration card ( in case of a new vehicle insurer would ask for a copy of the proforma invoice).

How the Insurance Premium is Calculated?

Insurers calculate premiums based on factors such as the driver's risk profile, claim history, and the car's make, model, year, and engine. Below are some factors that can have a significant impact on premium rates. When compared to a significantly mature and experienced driver, a less-experienced driver will cost more to insure, resulting in more expensive insurance.

  • A car with safety measures will have a minor impact on insurance premiums.
  • It goes without saying that the price for a top-of-the-line and exotic sports car will be higher.
  • Any driver under the age of 30 will see a significant increase in the cost of their insurance premium.
  • Any inexperienced, untrained driver will almost certainly cost more to insure than a seasoned one, and this will have a significant impact on insurance premiums.
  • When it comes to add-on coverage, it's no surprise that the insurance cost will raise. To name a few, GCC coverage, Breakdown coverage, and Offroad coverage are all available.

Emergency Services are always good to have

In the event of an emergency, timely roadside assistance will provide invaluable help to the motorist. This is a crucial thing to consider, especially for those who are planning to purchase vehicle insurance in Dubai in the near future. In the event of a roadside emergency, such as a flat tyre or low gasoline, this facility can assist you in dealing with the situation as quickly as possible. The emergency number is printed on the insurance card, and it can be called for quick roadside help. It's worth noting that certain insurance firms don't give round-the-clock roadside help; in this situation, consumers can compare car insurance in Dubai and pick their favourite service provider at their leisure.

Conclusion

In order to be on the safe side of the law, you must insurance your car in Dubai. Purchasing proper car insurance not only protects your assets but also provides you with piece of mind. Before purchasing auto insurance in Dubai, customers should conduct extensive research to compare and select the finest insurance plan that meets all of their needs at the lowest cost. Despite the fact that the unexpected development of multiple service providers has created a cacophony of uncertainty, it is still prudent to compare vehicle insurance in Dubai before settling on one final alternative, and here is where online comparison services can assist you in making a sensible financial decision. Customers may quickly compare the best vehicle insurance policies by using the services of these suppliers. Buying vehicle insurance in Dubai is, of course, as straightforward as it gets with these policy comparison services. All they have to do is state their car needs, and the rest will be taken care of by their separate websites.

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

30-Oct, 2021

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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