Car insurance is mandatory by law in the UAE. While only one type of car insurance (Third Party Liability insurance) is mandatory by law, other policies provide more coverage and may be required for getting a car loan. To find out more about the different types of car insurance policies in Abu Dhabi, follow this guide prepared by ServiceMarket.
Third Party Liability (TPL) insurance coverage
TPL insurance is mandatory by law in the UAE which means that without it you cannot drive your vehicle. Being the minimum requirement for car insurance coverage, this policy holds the cheapest insurance premium. Third party liability insurance only covers the other parties in a car accident. Under this car insurance in Abu Dhabi, your own vehicle will not be covered. Any damage done to your vehicle as a result of any other circumstance such as fire and theft is also not covered under this type of insurance.
Basic comprehensive insurance coverage
Although the premium for comprehensive car insurance is a bit higher than that of third party liability insurance, this type of policy covers a lot more, including all damages faced by you and third parties during an accident as well as any loss caused by theft and fire. You should definitely choose a comprehensive car insurance policy if you have an expensive vehicle. This policy is not mandatory by law but could be necessary to get a car loan approved.
You can also include add-ons in your car insurance policy to get extra coverage. For example, you can opt for roadside assistance, coverage across all GCC countries or agency repair coverage.
How much does it cost?
Generally, your premium depends multiple factors such as the type of car you own, your age, the add-ons you sign up for and whether you’re getting TPL insurance or comprehensive car insurance. If you have a 2017 Nissan Sunny 1.5L Sedan, you can expect to pay AED 1,138 for TLP insurance and around AED 2,426 for comprehensive insurance. You can easily save a lot of money by doing some comparison shopping.