When you buy a car in the UAE, there are succeeding requirements such as getting your driving license and getting car insurance. Although this might sound a hassle, these two are actually needed to protect you from greater damages in the future.
Also Read: Motorcycle License in the UAE
Car insurance is mandatory for owners of vehicles in the UAE. You cannot register your car unless you have an active vehicle insurance. In this article, we will focus more on car insurance and how it can benefit you as an expat and car owner in the UAE. Read on to know more and don’t forget to take the learning as your drive to work.
What is car insurance?
Car insurance is similar to life or health insurance. The only difference is that it is meant for vehicles. When you buy a car from a dealer, car insurance is usually included in the package. Most of the time, you will get coverage of up to one year and it is your discretion to renew it. Car insurance in the UAE is categorized into two: comprehensive insurance and third-party insurance.
What is comprehensive insurance?
Comprehensive insurance in the UAE is considered as full insurance. It is actually a complete safety package for all the vehicles and owners in the country. Whatever the type of damages to your car is, whether it comes from fire, theft, or road accident, everything is covered, including the third party who is involved in the accident. If you are planning to get comprehensive insurance for your car, inquire about passenger injury as there are times that this is not included in the package.
Some of the basic and add-on benefits you will get under comprehensive insurance are car replacement for 6-month old vehicles in case of theft, damage repair to third-party cars, damage repair to owner’s car, dent repair, vandalism, natural disasters, fire, floodwaters, emergency medical cover, and so on.
Under this insurance, exceptions are also considered. Some of the things that are not included are the depreciation of your car, general wear and tear, driving under the influence of alcohol, driving without driving license, overloading, and intentional damage.
What is third-party insurance?
The second type of car insurance in the UAE is third-party insurance. This is as simple as covering the damages done to a third-party vehicle. If this is what you are planning to get, the damages to your car are not covered. You will pay for the damages of your own vehicle. Compared to comprehensive car insurance, this one is cheaper.
What are the required documents to get car insurance?
If it’s necessary to get your car insurance, you should be able to secure the following documents first:
- A photocopy of your Emirates ID
- A photocopy of your driving license
- Your vehicle registration card
- Your no claim bonus
- Your vehicle purchase invoice
If you are not familiar with the no claim bonus, it is the benefits given to vehicle owners if they don’t claim any damages during the duration of the insurance. If there’s no damages or accidents within the period of insurance, you can claim up to 1 year worth of reward. Plus, you can get a 7% discount on your next policy purchase.
Why do you need car insurance?
Car insurance is essential to every car owner. This has a lot of benefits that can save you from spending too much on vehicle damages. If you are looking for reasons to get one, here are the advantages of car insurance in the country.
You have two options to choose from, depending on your budget.
As mentioned above, there are two options in terms of car insurance. Depending on your budget, you can choose what’s cheaper but there are differences in terms of the policy. If you choose comprehensive insurance, you will save a lot of money especially if you think that you are prone to vehicle damages or accidents. No matter how many times you got into an accident, if your insurance can cover it up, there would be no problem. On the other side, third-party insurance is more affordable as it only covers the damages done to other vehicles. This is as good as an add-on if you have existing car insurance.
You can save money from paying the damages done to your car and to third-party vehicles.
You might think that getting car insurance is not saving money at all since you have to pay for the premiums. Your car insurance is like savings. With or without accidents or damages, you will be covered. No matter how big the damages are, your insurance can get them fixed without you paying for additional expenses. This means that the fixed premium you are paying is already enough to cover even the expensive damages. That’s how you can save money with car insurance.
The premium is cheaper compared to when you pay the damages in cash.
If you don’t have car insurance, you will likely pay for the damages in cash, which is more expensive than if you pay the monthly premium of car insurance. Depending on the type of insurance you will get, it will always be car insurance that’s cheaper. If you have no savings and you don’t want to pay in cash when you got into a car accident, it’s better to get car insurance in the UAE.
The duration of the insurance is reasonable.
The duration of car insurance in the country is reasonable, even if some can only cover 1 year. What’s great about this is that you still get your claim even if no accidents happen. At least 1 year is enough to try the benefits of car insurance.
It is required by the law.
Last but not least, car insurance is required by the law. The UAE RTA law states that it’s mandatory for car owners to get a car insurance policy. If you will not get one, you are likely to pay fines. It’s better to pay for premiums than to pay for fines and charges.
Final Thoughts
Car insurance is a necessity if you own a car in the UAE. This is another responsibility you have to take. If you are not willing to spend on it, you still have the option to use public transportation instead of getting a car. But, if that’s not an issue, you can apply for car insurance online without a hassle.
Just visit the website of the car insurance company you prefer and make sure to completely fill out the online form. You should have your desired insurance policy by this time. After that, you can pay the premium using your credit or debit card. Don’t forget to talk to an agent before you make a purchase!