It is legally mandatory for all car owners to have vehicle insurance in the UAE, which is regulated by the Central Bank of the UAE. It can be difficult, especially as a new car owner, to decide which insurance policy type you should choose based on your vehicle and financial situation. Look no further, because this will guide you to which insurance policy is better suited for you, with all the statistics and information. All about coverage cost and benefits, it’s a detailed breakdown for you according to your needs.

Types of car insurance in the UAE

Third-party liability car insurance [TPL]: as the title suggests, this insurance covers the damages done to the third party in an accident, whether it’s physical harm to the driver or the vehicle.

Cover under insurance:

• 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

Does not cover under the insurance:

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

Advantages:

• Low premium cost
• Mostly done for older or low-value vehicles
• Legally required minimum insurance

Disadvantages:

• Does not cover insured’s vehicle damage or personal injuries caused in an accident
• Out-of-pocket costs if your car gets damaged
• No cover for theft or natural calamity

Who Should Choose TPL?

• Older Vehicles: If your car is over 5-7 years old, its value might be lower, making TPL a cost-effective choice.
• Budget-Conscious Drivers: It is more affordable than comprehensive insurance.
• Low-Risk Drivers: If you have a strong driving record and feel confident in avoiding accidents, TPL may be sufficient for you.

Comprehensive car insurance: comprehensive car insurance deals with all kinds of damages mentioned under the clause, such as damages done to the insured party’s personal property or the vehicle in situations like accidents, theft, natural disaster, or fire. It covers the third-party coverage as well.

Cover under the insurance.

• 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.

Does not cover under the insurance

• 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

Advantages

• Covers damages done to the person, vehicle, and the third party
• No claim bonus available
• An additional clause can also cover passengers as well as any paid driver
• Protection against any man-made disaster, robbery, or any other kind of mishappening

Who should choose a comprehensive insurance policy?

• New vehicle: as it has high values, and the damages can cost very high unless covered under an insurance policy.
• Expensive vehicle: owners need to save themselves from the heavy damage done during any unforeseen circumstances.
• Ensuring the safety of your vehicle over anything else
• New or young drivers: new drivers or youngsters are usually at high risk of getting into accidents or any other incident, which makes it more important to get a comprehensive insurance policy.

Choose your insurance wisely, and protect your assets so you don’t have to worry in the future. Comprehensive insurance not only covers third-party liability but also protects against numerous mishappenings like accidents, natural disasters, fire, theft, etc. Protect more so you have to worry less!