After months of deliberation, you’ve finally made the big purchase and become the owner of a brand new car. You are eager to take her out for a spin down the iconic Sheikh Zayed Road. Before you get down to fiddling with the cruise control, ensure your car is insured and registered with the Road Transport Authority (RTA).
Now the tricky part – how to select a car insurance policy? Should you opt for the cheapest in the market or the first one that gets offered to you? What aspects should your policy cover? If this is your first time, all the jargon and options can seem overwhelming.
Here’s a quick guide to everything that you need to know about getting car insurance in the UAE.
Why do I need Car Insurance in UAE?
According to the UAE RTA law, it is mandatory for all vehicle owners to get car insurance cover. Also, car insurance policy protects your vehicle financially in case of an accident or a natural calamity. In other words, the repair work on your car due to an accident, is paid for by the insurance company.
What type of Car Insurance should I go for?
The type of insurance you will pay for will depend on two things:
a) Your actual requirement: what aspects you wish for the car insurance to cover
b) Your risk capacity: do you prefer to keep the cover to a bare minimum since you assume the probability of something bad happening is low or are you the cautious sort who prefers leaving nothing to chance?
Your answer to the above two questions will determine the type of insurance you need. There are two types of car insurance available in the UAE:
1. Comprehensive Insurance:
As the name suggests, a comprehensive car insurance policy will offer you a wider protection of cover. It will cover damages to your car caused by an accident either by you or a third person. It will also cover any damage to your car due to theft, or act of vandalism or fire.
Because it covers damages for all parties involved in an accident, the premium on a Comprehensive insurance is on the higher side.
2. Third Party Liability (TPL):
Third Party Liability car insurance will only cover for damages caused by you to other people’s car. If your car gets damaged in an accident of your fault, this policy won’t cover any repair work for your car. The insurance company is only liable to pay to the third party involved in an accident caused by you.
However, if you happen to be in an accident not of your fault and you have a Third Party Liability car insurance policy, then you need to determine if the other party’s insurance company will pay for your damages.
Because the damage cover is limited in this policy, your premium will be lower compared to that for a comprehensive car insurance policy. Many beginners make the mistake of opting for this cover because it is much more affordable.
Is there anything else I need to consider?
Based on your needs you could also include some of these add-ons to your policy. However, these would also increase your premium:
Roadside Assistance: If your car breaks down or if you run out of fuel on the road, this add-on will provide you with a mechanic / towing service wherever you happen to be in the UAE. (at getthat.com we consider this to be important!)
GCC Coverage: If you take frequent road trips to the neighbouring GCC nations, a wider coverage is a good backup plan. In fact, some countries like Oman will not allow you entry unless you have valid international/GCC insurance.
Agency Repair: Getting your car repaired from the official dealer of the car will ensure the authenticity of the parts used and better servicing. It is costlier than a cheaper, quick fix option from a local repair shop.
Car Rental: If your car is in the workshop, some policies also cover the cost of renting a car to tide over the repair period.
Personal Belongings, Personal and Passenger Accident Cover: This covers death or any bodily injury to you or the passenger in your car at the time of an accident, as well as any personal items such as a laptop or a mobile phone that might get damaged during an impact.
In part 2 of our guide to UAE car insurance, we’ll cover premiums, how they’re calculated and how to pay less for your car insurance whilst still getting the cover you need.
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