If you’re living in Dubai you already know this- buy the insurance before buying the car.
It’s summer and after months of excitement and rumination, you finally make your big purchase and become the owner of your new car. At this moment, your heart is packed with Happiness and keenness until you recollect- ‘The Insurance Policy! ’.
With so many companies offering the same insurance, it may be confusing for a regular man to find his ‘best option’ among car insurance companies.
Here’s our in-depth guide to guide you through the types of car insurances available in Dubai and which one would particularly suit your preferences:
- Third-party liability insurance:
- Let’s understand what a ‘third party-liability’ really means. This means that the auto insurance company is responsible for paying the damage caused by you to the other vehicle driver or the so-called ‘third-party’.
- However, this insurance does not hold the responsibility to cover up for the damage caused to your car in an accident. It only pays for third party damage. In other words, you will have to pay for your own car damage.
- Conditions of damage include death, bodily injury, or property destruction to the third party and nothing else.
- This might be cheaper than other insurance available in the UAE.
- It should be noted that the amount to be paid by the insurance company is limited.
- Third-Party Liability Insurance with Theft and Fire Coverage:
- This insurance is the same as the above-mentioned insurance, the only difference being that this insurance includes two more conditions of damage, that is, theft and fire. These are known as add-ons and will cost you more than the basic one.
- Basic Comprehensive Insurance:
- This insurance plan offers two way benefits to the customers- one, the insurance company takes care of the charges regarding the damage of the third party’s car/person and they will also be responsible for paying up the charges in case your car gets damaged in an accident. In other words, you will not have to pay for the damage caused to your car (in case of an accident)
- This insurance scheme is slightly costlier than the third party liability insurance as it has wider coverage.
- Insurance companies in Dubai that offer a ‘Basic Comprehensive Policy’ are legally obliged to provide this type of car insurance for 3%-5% of your vehicle’s value.
- Conditions for damage include almost everything like fire, theft, external explosion, accidental collision, lightning, self-igniting, etc.
4. Comprehensive Insurance
- Comprehensive insurance includes add ons (extra options) to choose from alongside the benefits of the basic comprehensive insurance. You may choose one or more add ons according to your preference and choice. These may include free insurance in GCC countries, roadside assistance, car rental, agency repair, windscreen damage coverage, and loss of personal items.
- One can claim this insurance with an extra amount of cash for the add ons.
- For a comprehensive insurance policy, insurance companies in Dubai are obliged to charge a maximum of 5% of the car value.
- Note that cars that are more than 7 years old cannot get this type of insurance policy in Dubai.
5.Premium comprehensive insurance
- This is the most expensive car insurance policy available in Dubai.
- This type of insurance covers up the damage caused by you to other cars as well as covers any damages and loss to your own car.
- This policy is not available to everybody but to only a few selected clients who have sports cars or other luxury cars.
- The conditions for damage include almost everything.
- Certain criteria must be fulfilled to claim premium insurance. Following is the list mentioned:
- Age: male and female drivers who are 25 & above are not subjected to higher insurance rates as they are not considered to be risky drivers. Whereas male and female drivers under the age of 25 are subjected to higher insurance rates as they are considered to be risky drivers.
- Car: insurance rates may fluctuate according to the car brand, model, and make. If your car has a history of several car accidents it may be difficult to get it insured. Cars older than 5 years including sports and luxury cars are expensive and difficult to get insured.
- Interest rate: there are two types of interest rates to choose from; a balanced interest rate and a fixed interest rate. A balanced interest rate will decrease over time whereas a fixed interest rate will remain the same for the entire insurance period.
The bottom line being, if you own a car that requires low-cost repairs then the most suitable insurance plan for you is the third party liability insurance policy. And if you own a car that requires medium-high cost repairs then the best option out there for you would be anything from the comprehensive policies. The premium comprehensive policy is especially for luxury and sports cars only.
That being said, one must compare car insurance quotes from different car insurance companies before settling a deal to get the best value out of your money.
But it’s just not the cost to know what’s being covered but how good the reputation of the company is, also regarding its claims. Also while comparing car insurance companies do not forget to read the terms and conditions fully!
Luckily we nowadays have online portals where you can compare offers from different insurance companies and get the best bargains easily.