If you are looking for car insurance in the UAE, it can be a bit tricky as there are many things to consider before selecting a car insurance policy. Factors affecting your insurance. Some key aspects to keep in mind before getting insurance. Here are some major points breakdown for you to make it easier to understand what to look for in a car insurance policy.

Types of insurance available in the UAE:

TPL or third-party liability insurance:

● TPL provides coverage for the damage done to the third party, whether the person or vehicle. It has a minimum premium, and it’s comparatively cheaper than comprehensive car insurance.

Insurance cover:

• Any damage done to the third party, whether it be vehicle, person, or property. It is all covered by the insurance.
• Legal liabilities like personal injuries and death

Exclusions:

• Damages done to your own vehicle
• Injuries done to the insured
• No coverage for theft, natural calamities, fire, or any other damage except for the one caused in an accident to a third party

Comprehensive car insurance:

• This insurance policy type covers the damages done to the insured person or their vehicle. Comprehensive car insurance ensures to provide coverage for your vehicle for all kinds of circumstances, such as theft, fire, natural disaster, and many more.
• The insurance premium for this is higher as it covers a vast number of situations, but its much safer to get a comprehensive car insurance to protect your vehicle from mishappenings.

Insurance cover:

• Third-party liabilities
• Damage done to own vehicle
• Personal injury during the incident
• Repair and replacement of the vehicle
• Coverage for fire, theft, and natural disaster
• Personal accident cover for the driver Additional benefits like roadside assistance, agency repairs, and replacement cars in case of major damage.

Exclusion:

• DUI, driving under the influence, such as alcohol or other banned substances
• Accidents caused by rash driving
• The unlicensed driver was driving when the incident took place

Some additional aspects and add-ons on car insurance:

• No Claims Discount (NCD): Insurers offer discounts for claim-free years.
• Agency Repairs: Comprehensive policies may cover repairs at authorized dealerships.
• GCC coverage: Some policies extend their coverage to other Gulf countries

 

Factors affecting your premium:

• The condition of your vehicle: Depending on the factor whether your vehicle is old or new, your insurance premium can differ, such as if your car is older than 5-7 years, you’ll have to pay a higher premium for the same coverage in comparison to the new vehicle.
• Drivers’ profile: Some policies charge a higher premium if the driver is younger than 30 years, citing the fact that there are statistically high chances of insurance claims and accidents happening. Conversely, older or experienced drivers are generally eligible for and may get the benefits of lower insurance premiums.
• A history of past accidents or frequent insurance claims can lead to higher premiums, as insurers perceive a greater risk. Conversely, a clean driving record with no major accidents or claims makes it easier to obtain new insurance at lower rates and without complications.
• Car usage: If the car has high mileage, then the premium can increase, as high mileage cars are more likely to get into road accidents.
• Location: Areas with higher traffic or accident rates may lead to increased premiums.
• Car Value: The market value of your vehicle significantly impacts the insurance premium. For instance, cars valued over AED 300,000 typically have an average insurance rate of 2.75% of the car’s value. In contrast, older vehicles, especially those over 25 years old, may face rates around 15%. Sports cars often incur an additional 20% on premiums, while SUVs might enjoy a 10% reduction.

How to decide the best car insurance for your vehicle:

• Know Your Needs: Evaluate your driving habits, vehicle value, and personal requirements to determine the appropriate level of coverage.
• Compare Policies: Research and compare offerings from multiple insurers to find a policy that balances coverage and cost effectively.
• Read fine print of policies: Thoroughly read the policy document to comprehend inclusions, exclusions, and any limitations.
• Check Insurer’s Reputation and authencity: Consider the insurer’s claim settlement ratio and customer service reviews to ensure reliability.