Car insurance gives you peace of mind on the road, but it's essential to understand that not all types of car insurance cover everything. In the UAE, different insurance types cover varying levels of accidents and damages. It's crucial to grasp what car insurance doesn't cover to avoid surprises and unexpected expenses in case of emergencies. In this article, we'll shed light on cases and exceptions not covered by car insurance according to each type of coverage.
Third-Party Insurance
Third-party car insurance is mandatory by law in the UAE. It covers damages caused by your vehicle to others (when you're at fault in an accident), whether people or properties. However, it doesn't cover damages to your own vehicle or injuries to yourself in case of an accident while driving.
For instance, if your car causes an accident, the insurance company compensates the affected party (the other side) for all damages caused by you, but it won't pay any compensation for damages to you or your car.
What’s Not Covered by Third-Party Insurance
In addition, third-party insurance doesn't cover damages that occur to the insured vehicle when it's at fault in an accident or to its driver or passengers. There are several exceptions outlined in the standard policy for third-party liability insurance.
For instance, it doesn't cover civil liability arising from accidents occurring in the following situations:
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Accidents occurring outside the country's borders.
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Accidents directly or indirectly related to natural disasters like floods, hurricanes, or earthquakes.
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Invasion, foreign enemy actions, or civil unrest.
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Accidents involving the insured, the driver, or employees injured while working, unless additional coverage is obtained under an annex or another document.
Comprehensive Car Insurance
Comprehensive car insurance provides extensive coverage for the insured and third parties in case of an accident, whether the insured is at fault or affected by another party. It covers any damage to the car, such as theft, fire, natural disasters, or vandalism.
For example, in the unfortunate event of an accident, comprehensive insurance covers all damages caused by or to you, and the company covers all repair costs for the insured vehicle and compensates other parties affected by your actions.
Cases Not Covered by Comprehensive Car Insurance in the UAE
Although comprehensive car insurance offers broad protection and covers a wide range of potential damages and losses, not everything is covered. There are exceptions outlined in the standard comprehensive car insurance policy, which may result in financial liability for the car owner or driver if they occur. These cases might result from driver misuse, traffic law violations, lease or insurance terms breaches, or circumstances beyond their control.
Here's a list of cases not covered by comprehensive car insurance in the UAE, where the insurance company isn't responsible for paying any compensation:
1. Loss or damage occurring to the vehicle off-road if there's no additional coverage in the policy for off-road vehicle damages.
2. Indirect losses or vehicle depreciation due to its use, defect, or mechanical or electrical breakdown.
3. Vehicle damage resulting from overload, exceeding width, length, or height limits, or exceeding the legally allowed number of passengers, provided that it's proven to be the direct cause of the damage.
4. Vehicle damage due to:
· Using the vehicle for purposes other than those specified in the insurance policy.
· Violating laws, such as committing a felony or misdemeanor.
5. Tire damage unless it occurs simultaneously with damage to the insured vehicle.
6. If the vehicle is used in a race or speed test, which directly caused the accident.
7. Damage to the vehicle resulting from accidents occurring due to:
· A driver not licensed to drive according to traffic laws.
· Driving without obtaining a license for the vehicle type according to traffic laws.
· The driver's license expires without renewal within thirty days of the accident, or if the license granted to him has been suspended by the court or competent authorities.
8. Loss or damage to the vehicle resulting from driving under the influence of drugs or alcohol.
In Conclusion
Understanding what car insurance doesn't cover will help you make better decisions regarding your insurance needs. Always remember to read your car insurance policy carefully, understand what it covers, and be aware of the exceptions. We advise you to drive your car cautiously, abide by traffic laws and insurance terms, and choose an insurance policy that suits your needs and circumstances.
