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Answering all your Questions about Car Insurance in Dubai

Posted January 3, 2019 by EasyFinance.com to Insurance 1 0

Picture a maze with meandering paths cut through thick foliage, some leading to dead ends and others taking you further into the heart of the structure. Car insurance in Dubai can be thought of in a similar way, with numerous insurance vendors to pick from, each more enticing than the last, offering add-on services and geographic extension to further complicate this already intricate maze of policies. So as you foray into the mind-boggling territory of picking car insurance in Dubai, we hope this guide will keep you from hitting any dead ends!

Q1: Is Car Insurance in Dubai Mandatory?

Yes, car insurance in Dubai and across all other emirates of UAE is mandatory. Driving without valid car insurance is illegal in the UAE. Car insurance in the UAE comes with a validity of a year. After the end of the policy, it offers 1 month grace period to get your insurance plan renewed.

Q2: What are the Different Types of Insurance Policies Available?

Insurance in Dubai falls under two major categories: comprehensive and third-party policies. Third-party policies only cover damage to the property or person of the third-party, i.e. the person that the policyholder gets into an accident with. Comprehensive policies, on the other hand, cover all forms of damage, to the policyholder and to the third-party as well. As per law, you are required to have third-party car insurance at the very least, though we would suggest opting for a comprehensive plan instead.

Q3: What Factors can Affect my Insurance Premium?

There are tons of factors that affect the premium of car insurance in Dubai. Every insurance provider computes insurance premiums on the basis of various factors. Here are some of the factors that can affect the insurance premium:

  • Car Type

Be it a Sedan, SUV or luxury vehicle. The premium amount may vary based on car type. Car insurance in Dubai attracts a higher premium for sports cars amongst all the car types.

  • Age
    The age category you fall in also plays a huge role in your premium. Typically, drivers between the age group of 23 years to 30 years are charged an extra premium while those between the age group of 30 years – 60 years actually don’t have to pay an extra premium.
  • Experience
    Newer drivers have to pay a higher premium as compared to the experienced drivers with the clean driving record.
  • Driving Record

A person who is involved in a large number of accidents will be charged a higher premium for insurance in Dubai.

  • Add-on Services

The more add-on services you opt for, the higher your premium will be.

Q4: What is a Deductible?

A deductible (sometimes referred to as an excess) is the amount you as the policyholder are liable to pay for an insurance claim. For example, if you have a deductible of DHS 200 and the cost of repair is DHS 1000, the insurance provider will pay up to DHS. 800. The rest of the amount, i.e. the deductible will be paid by you.

Q5: What is a No Claim Discount?

If a policyholder doesn’t file for a claim in the policy year for their car insurance in Dubai he/she is eligible for a No Claim Discount that is rewarded at the time of policy renewal. 

Q7: What is the Off-road Cover?

Most vehicle owners opt for off-road cover for their car insurance in Dubai. As the name suggests, off-road add-on provides insurance coverage for accidents and recovery of vehicles from unpaved routes such as those deep in the desert. Note that off-road cover usually only extends to a fixed distance from the main road.

Q8: Should I opt for Roadside Assistance?

Roadside assistance is a highly beneficial service. If it isn’t included as apart of comprehensive plans for insurance in Dubai, you can opt for an add-on. Roadside assistance covers any sort of breakdown or car malfunction, punctured tyres, drained battery, low fuel, etc.

Q9: What is a Zero Deductible/depreciation Policy?

Zero deductible car insurance in Dubai is a policy that has no deductibles. This means the insurance vendor pays for all repairs and services in full without charging the policyholders anything.

As vehicles start to get older, their replacement parts become more expensive due to the depreciation of the car’s value. A zero depreciation policy covers replacement parts and repairs in the same price range, up to a pre-decided period of time.

Over to you

Car insurance in Dubai has become a very sophisticated affair, but this guide should help shine a light on some of the often misconstrued notions policyholders have. Some insurance buyers think that opting for a third-party is enough, but it’s not. Car repair expenses cost a bomb. The insurance premium attracted by a comprehensive is nominal but the insurance coverage it offers is extensive.

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