An unplanned collision is the last thing you want to happen after shelling out a significant sum of money for a new vehicle. Therefore, automobile insurance is the best solution to protect your vehicle from various damages, including vandalism, accidents, and collisions.
Moreover, car insurance not only protects your car but is also mandatory for all vehicles to get insurance in the UAE as per Road and Transport Authority (RTA) policy. Additionally, driving without insurance can cause a fine of PKR. 38,166.32 and four black points. Many companies offer the best insurance options, but the question is what type of vehicle insurance is best for you.
So, join us in reading this extensive blog to learn what kind of insurance best suits your car’s needs.
Types of Motor Insurance in the UAE
There are two major types of motor insurance in the UAE. Both cover the basic requirements depending on the vehicle make and model and driver’s experience. Therefore, one must conduct thorough research to select the best insurance plan.
So, let’s get into the details and opt for an option suited to your vehicle needs.
Comprehensive Car Insurance Policy
A Comprehensive Insurance policy covers not only third-party vehicles but also your own. What it means is that if your vehicle gets into an accident with a third party, this policy covers the damages/loss of both your personal and the other party’s vehicle.
However, this CI policy is expensive since it provides end-to-end coverage. It includes fire, accident, collision, theft, minor crashes, explosion, lightning, and vandalism. Usually, the insurance companies offer this policy at the cost of 3% to 5% of the car’s value.
Third-Party Liability Insurance
Third-party insurance is the most basic and affordable policy required for every individual by the UAE RTA law. This policy covers claims on you, including injuries, loss of life, and vehicle damages. It only covers third-party claims and does not provide any liability coverage to your vehicle in the accident caused by you.
Therefore, if you want more coverage options, you should opt for add-ons in your insurance plan. In Addition, this option is fundamental and the only option available in the UAE if your automobile is old. Moreover, insurance companies does not cover the damages caused by illegal activities.
Insurance Policy Add-Ons
For more options, you can select an add-on to make a customized insurance plan and get a whole package. Some of the add-on covers are listed below:
Roadside Assistance
The services in roadside assistance include towing, tire replacements, and battery jump-starts.
GCC Coverage
It offers coverage throughout GCC countries, including Kuwait, Oman, Qatar, Bahrain, and Saudi Arabia).
Off-road Coverage
It protects and covers expenses from damages caused by off-road driving.
Personal Belongings Coverage
This add-on protects your personal belongings in the car against theft or loss.
In the UAE, insurance companies allow annual payments only, and the insurance remains valid for up to 13 months. In conclusion, now that you are fully informed about auto insurance and have determined the kind of coverage your automobile requires based on its age, make, and model, you may choose from various auto insurance providers in the United Arab Emirates. So, make a wise decision on selecting an insurance company as it is a long-term commitment.
