Owning a car is no longer a luxury – it is a necessity especially in a city like Dubai where commuting takes up a major chunk of your time, but with that in mind there are quite a few things you need to do before you can drive your car down Sheikh Zayed. One of those things is buying car insurance in Dubai. Whether it is a new car or a used car, all vehicle owners are legally required to get their car insured with a trusted insurance company before the car can be registered. If you are looking right away for a car insurance renewal, make sure also to check our article on how to save 1000 AED on your car insurance renewal.
Getting a car insurance in the UAE can be a confusing situation for many as there are many insurance agencies, brokers and banks that offer car insurance. It is absolutely necessary to understand the various policies and the types of providers clearly to ensure you buy the car insurance policy that best fits your needs. Below we’ve outlined everything you need to know about car insurance in Dubai and when you’re ready, we can help you get quotes from insurance companies too!
1. Decide which type of car insurance you need:
- Comprehensive Insurance: This type of insurance covers you and the other car in case of an accident. Because of the wider coverage, this insurance generally tends to be costly. This insurance covers not only the vehicle against accidents, theft, fire and malicious acts but also personal accidents, in the event that the driver or passengers are injured in a collision and need medical treatment.
- Third party liability insurance: This insurance covers only the other car and passengers in case of an accident. Thus if you opt for third-party insurance cover, the insurance premium will cost much less but you will have to pay for the damage of your own car in case of an accident. If a car has been purchased using a loan, most banks in the UAE will not allow you to buy third party liability insurance and will require the owner to purchase comprehensive insurance.
2. Gather all your documents to get the process started: You are required to present the following documents to the insurance company as proof of identity and driving experience.
- Copy of your driving license
- Copy of your passport photo page and visa page
- Copy of your vehicle registration card (if it’s a new vehicle, you will need to provide a copy of the pro-forma invoice).
3. Understand how your insurance premium is calculated: Car insurance premiums are calculated after considering the year, make and model of the car, the size of the engine, claims history and risk profile of the driver. In the table below you will find some of the other factors that will affect your insurance premium. For example, a driver with less experience will have to pay a higher insurance premium in comparison to a more experienced and older driver.
|Factor||Influence on Insurance Premium|
|New car with high safety features||Low|
|The price of the car is on the higher end||High|
|Driver’s age is under 30||High|
|Driver has low driving experience||High|
4. Claim your insurance bonus: If you already have an car insurance provider, and you’re switching companies for your current vehicle you should contact your old insurance company to receive a “No Claims” Certificate. By presenting that certificate to your new car insurance company, you can get a discount on the annual insurance premium.
5. Check if you have off-road travel insurance: Generally, car insurance companies in Dubai only cover accidents that take place on the road, but Dubai being an adventurer’s paradise, off road travel like dune bashing and wadi bashing are quite common. If you will be taking part in these activities, make sure that your insurance covers off road travel as well.
6. Ask about emergency services: In case you have an emergency while on the road like running out of fuel or a flat tire, you can call the emergency number provided on your brand new insurance card for prompt roadside assistance. However, some insurance companies do not provide a 24 hour roadside assistance hotline so be sure to check that before signing up.
Due to the numerous insurance policies offered by various companies and brokers, it is always advisable to compare them before selecting one and that’s where we come in! ServiceMarket can help you to compare multiple car insurance policies. All you have to do is tell us a little bit about your car and your requirements, and we’ll do the rest! You can then purchase your selected policy online!