After purchasing a new car, it is necessary to get it insured in the UAE. The Roads and Transport Authority (RTA) requires every car owner to acquire insurance to drive on the city’s roads legally. Car insurance is an essential aspect of driving as it provides financial security and protection against unforeseen accidents. Insurance companies cover unpredictable calamities that may occur annually, saving you from unexpected liabilities. Also, insurance needs to be renewed every year.
Whether you are buying a new or used car or renewing your insurance, it is compulsory to apply for insurance. However, with so many insurance companies and policies available, it can be overwhelming to choose the best one. This blog will provide you with everything you need to know about car insurance in the UAE and help you drive safely on the roads.
Types of Insurance
There are basically two types of car insurance coverage that a car owner can opt for. You can select one based on your requirements and needs.
Comprehensive Car Insurance
Comprehensive car insurance provides extensive coverage and protects you from various types of damages. This insurance not only covers the damage to your car but also covers the liability coverage for third parties. It covers all kinds of repairs and accidental damages like theft and vandalism. Moreover, the policy provides coverage for damages caused by natural disasters such as fire explosions and floods. However, the coverage of a comprehensive insurance policy may vary from company to company, and you can also customize the plan as per your needs.
Third-Party Liability
It is a basic insurance policy that is mandatory by RTA for all car owners in Dubai. The purpose of this type of insurance is to provide coverage to a third party if you cause an accident. In this type, the damage caused to your vehicle will not be covered. The company will be responsible for covering only third-party vandalism. It is relatively cheaper than comprehensive car insurance. It is the minimum insurance coverage required in the UAE.
For more insights, read our blog: Types of Car Insurance Plans in the UAE
Documents Required
The documents required for car insurance might differ from company to company. However, it is best to save time and prepare the documents listed below, as these are mostly the exact requirements of most companies.
- A copy of Emirates ID or passport copy
- Vehicle registration card
- Driver’s license
- Record of previous insurance (if any)
- RTA certificate of transfer for pre-owned vehicle
List of Top Insurance Companies in the UAE
While there are numerous insurance companies with more than 60 options, it can be challenging to choose the one that suits your vehicle needs. Therefore, it is highly recommended that you do your research and compare different companies, then select the one that suits your insurance needs. To make things easier for you, we have highlighted the top car insurance companies in the UAE. Also, you can hire an insurance consultant to help save time and find the right insurance plan for your vehicle.
Factors Affecting the Cost of Insurance
Calculating the cost of car insurance in the UAE depends on several factors, including the car’s value, age, model, and intended use. Typically, car insurance costs around 2% to 3% of the car’s value.
Driver’s age and experience
Acquiring car insurance under the age of 25 is more expensive. However, if you are an experienced driver, you can negotiate the cost of the insurance policy.
Insurance Claim
If you haven’t made any claims on your insurance policy in the past, you may be eligible for a no-claims bonus.
Value of Your Car
The value of your car will impact the cost of your insurance policy. If your car is expensive, then the insurance for it will also be costly. This is because high-end cars have expensive spare parts and repairs. Therefore, it will cost more to insure such valuable vehicles.
Type of a Car
The cost of insurance also refers to the type of car you possess. There are different insurance cost policies for sedans and SUVs.
Age of a Car
Only vehicles older than seven years are allowed to get Third-Party Liability Insurance from companies. The older your car, the more expensive the insurance will be, as older cars tend to have more issues.
Add-ons
Your car insurance will cost more if you include add-ons for enhanced coverage. These add-ons include agency repair, replacement of spare parts, personal injury compensation, and roadside assistance.
How to Determine the Best Car Insurance Plan
To choose the best car insurance plan in the UAE, consider your vehicle type, age, and requirements. Follow these tips to determine the best insurance plan for you.
Analyze Your Needs
First and foremost, research and analyze your vehicle requirements based on its type, value, budget, and age.
Select Reputable Company
Secondly, among the vast options of insurance companies, research and select the most reputable and reliable. Check customer reviews on websites and follow up on social media. A renowned company with a good market position ensures customer convenience with transparent policies.
Comparison of Policies
When comparing insurance policies, consider both costs and benefits. Look for companies that offer customizable plans with inclusions.
Final Decision
Finally, select the one that suits your budget and meets your expectations. Make a well-informed decision by thoroughly comparing and contrasting the insurance companies in the UAE.
Conclusion
Getting a car insurance plan is vital after buying a car in the UAE. Car insurance ensures the safety of the car owner and fellow drivers on the road. Applying for car insurance is a seamless process with proper research on insurance companies. We hope you found this article informative and are ready to choose the best insurance plan for your needs and travel with convenience on UAE roads.