In the UAE, car insurance is mandatory for the registration of vehicles. Car insurance policy provides you with a sense of security and protection from liability claims in the event of an accident. Finding the best insurance policy in the UAE can be tricky with all the available options and benefits out there to choose from. You need to be absolutely sure of your requirements before you head out to explore all your options.

There are two basic types of car insurance policies in the UAE:

Third Party Liability insurance:

It is the most basic and cheapest form of car insurance in the UAE. This insurance protects you against all claims you will be liable for such as damage to property or vehicle, loss of life or bodily injury to a third party. It does not cover the damages caused to your own car. If your car is seven years or older, TPL is the only insurance option for you.

Comprehensive insurance:

This insurance covers all costs under TPL as well as cost for repair or replacement of your own vehicle or property, whether you are at fault or not. It also covers damages to your vehicle due to fire, external explosion, accidental collision, self-ignition, theft or burglary. Comprehensive insurance also includes agency repairs for cars up to 1 or 2 years of age, depending on the insurer. The only limitation is that this insurance is only  available for cars up to 7 years old. Financed vehicles often require comprehensive insurance by default. As the age of your car increases, its value reduces so you might want to switch to TPL once your car has been in use for more than 5 to 6 years

– There are also some additional insurance covers available:
– Roadside Assistance or recovery breakdown
– Fire, Storm and Tempest cover
– Rental or Alternative Vehicle Cover
– Geographical area extension Cover, for example Oman
– Personal Accident Cover for the driver in the event of death or serious bodily injury up to specified limits.
– Personal Accident Cover for the passengers in the event of death or serious bodily injury up to specified limits

Earlier in the UAE insurance premiums were calculated on the basis of age and worth of the car only. The new legislation requires calculation of premium based on a number of factors like model of the car, current value of the car, and the age and experience of the driver As Federal Traffic Council is considering lowering minimum age for driving to 17 years, they are also considering hiking the insurance premiums, especially for young drivers, to compensate for the increased risk of accidents due to more inexperienced drivers being out on the roads.

Car insurance is valid for 13 months as cars also require registration renewal after a year. Insurance companies are required to inform Road and Transport Authority (RTA) about issuance of new insurance policy to an individual. Insurance policies can be cancelled only if you transfer ownership of your vehicle or deregister it.

All standard and additional coverage have financial limits specified by the insurance companies. Make sure you are aware of this by reading the terms & conditions on the insurance policy. Be careful when you’re picking out an insurance policy for your vehicle, as once the paperwork is complete, you’ll be stuck with your choice for at least a year. Making wiser choices can save you lots of money in the long run.

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