Car Insurance in the UAE: Complete Guide

Driving in the UAE? Buckle up, not just with your seatbelt but also with your car insurance!

After all, in the UAE, car insurance isn’t just a safety net; it’s a legal mandate.

Dive into this article to uncover the nitty-gritty of car insurance in the UAE, from policies to prices, and ensure your ride stays on the right side of the law.

Is Car Insurance Mandatory In The UAE

Car insurance is one of the most essential things in the UAE if you have bought a new car.

By law, you should get insurance for your car when you first register it. The law states that you might get basic car insurance, which covers injury and death-related incidents to any third party in an accident and property damage.

Even though car insurance is essential per law, getting it is beneficial to the user since it protects them from financial harm in case of accidents in the future and allows them to drive confidently on the road.

Given the road conditions and high-speed regulations in UAE, insurance is vital before getting on the road. 

Consequences Of Driving Without Insurance 

The UAE is known for its hard stance on fines and driving regulations. The Emiratis levy heavy fines on those who break the law.

The UAE has over 130 different traffic violation types.

The fine for driving an uninsured vehicle in UAE is AED 500. On top of this, you will also get four black points on your driving license apart from a cash fine.

After a certain number of black points, the RTA will be liable to cancel your license.

Things do not just end here; the road and traffic authority of the UAE can confiscate your vehicle following the violation of driving without a license. 

Third Party And Comprehensive Insurance Plans 

There are two types of insurance plans in the UAE.

A comprehensive insurance plan mainly offers the medical expenses of an accident as well. Moreover, it offers free personal injury coverage as well.

An excellent comprehensive insurance policy often involves your family and is not limited to just you, which is handy, especially when you are married and have a family.

These features, including medical coverage, are primarily absent from your primary or third-party car insurance. 

Some of the best comprehensive insurance plans can also cover the damage you took from stolen items in the car during an accident and provide roadside medical assistance wherever you are.

So it is always wise to save up and spend on a solid, comprehensive plan instead of a third-party liability insurance plan.

However, since third-party insurance covers lesser damages, the premium is pretty low if your car is seven years or older, then you can only opt for third-party insurance plans as per the law in UAE. 

Some of the documents you may need to apply for a third-party insurance plan may include

• Signed Claim form 
• Tax receipts 
• A copy of the Insurance policy 
• A copy of the Driving license 
• A copy of the car registration certificate
• Car Repair Bill 
• A copy of the First Information Report 
• Car’s Inspection Address 

If you have received your car insurance but need the physical papers to put in your car, go to the insurance company’s website and do the following steps:

1. Find and select the option to view the electronic copy of the insurance policy 
2. Download the copy as a pdf file 
3. Enter your policy number and registered active number 

If you want to renew your insurance policy, then you again need some documents, some of which are as follows:

• Passport or ID Card 
• Passport size photographs 
• Driving license copy 
• Pollution test certificate 
• Old Car insurance policy number 
• Credit or Debit card details for online payment

How Much Does Car Insurance Cost In UAE 

There are many things on which the cost of your car insurance depends; some of those things are the driver’s age, how old the license is, and the number of previous claims.

However, generally speaking, the cost of an excellent comprehensive insurance plan in the UAE has a price range of around 1.25% to 2% of your vehicle’s book value. 

Important Information Regarding Car Insurance In UAE

Many important things to consider before going for car insurance in the UAE.

One of the critical aspects is to look at your needs, analyse your vehicle, and go for a suitable plan according to your driving habits to get the most bang for your buck.

You should always check the reputation and market value of the insurance company you are going for.

If your company is well known and has a good market share, they are more likely to issue timely settlements and will be a lot easier to deal with in case of accidents.

It would be best if you always went for a customer-friendly insurance company.

Make sure you compare different plans from various insurance companies and compare them before making a financial decision since these people will stand by you in case anything goes wrong.

Therefore, do your homework and make a calculated decision.

Read through the insurance coverage section thoroughly to understand what you will be protected against and what not. This allows you to not be disappointed in the future and be better equipped in case any accidents happen. 

Some of the best companies to get car insurance from include the following

• AXA Insurance 
• Noor Takaful 
• Oman Insurance Company 
• RSA Insurance 
• Adamjee Insurance 
• Salama Takaful Insurance 
• Dubai National Insurance and Reassurance
• Alliance Insurance 
• Emirates Insurance Company 
• Orient Insurance 

Conclusion

And there you have it, folks!

We’ve cruised through the winding roads of UAE car insurance, dodged the potholes of confusion, and hopefully parked you in the safe zone of understanding.

It’s not just about guarding your shiny ride against dents and scratches.

No, siree! It’s about dodging those hefty fines and staying on the sunny side of the law.

So, buckle up, pick the insurance that suits you best, and let the joyrides begin!