Are you getting a new car or looking for car insurance in the UAE? But before you do so, it's important to know about different types of insurance coverage to keep your car, passengers, and yourself safe in case of road mishaps. In the UAE, there are mainly two kinds of car insurance, each with its own unique coverages, advantages and drawbacks. Let's take a closer look at these types and find out what’s the best type of car insurance for you.
Comprehensive Car Insurance Policy:
One of the most comprehensive options available is the Comprehensive Car Insurance Policy. This coverage not only protects against third-party losses but also extends to cover damages to your own vehicle. It encompasses a wide range of incidents, including burglary, fire, external explosions, accidental collisions, lightning, self-ignition, theft, and even malicious acts by a third party. It is mandatory for insurance companies to provide this policy at a maximum price of 3%-5% of the car's value. However, it's imperative to thoroughly review the policy documents to ensure you have adequate coverage and you’re getting exactly what you need for the price you’re comfortable with paying. If the pricing seems a little confusing to you, you can log on to Shory’s quotes page to check out competitive prices from Shory’s top providers.
Typically, a comprehensive insurance policy covers theft, vandalism, fire, natural disasters, damage caused by animals, certain civil disturbances, and more. To understand the specifics of coverage, you can consult Shory’s insurance experts.
Comprehensive Car Insurance Policy with Add-ons:
This option combines the benefits of comprehensive coverage with the flexibility to include additional features. By paying an extra amount, you can access add-ons such as dealer repair, free hire car, no-claim bonuses, and free insurance in the GCC countries in some cases. The cost for comprehensive car insurance in the UAE ranges from 3%-10% of the car's value, depending on the insurance company and whether a no-claim bonus is availed or not.
Third-Party Liability Policy:
Mandated by UAE law, the Third-Party Liability Policy is a basic coverage that covers death or bodily injury to any third-party car or driver, along with property damage caused by the insured party's vehicle. However, it does not cover any loss or damage to your own vehicle unless the blame lies with the other party, in which case you would need to claim from their insurance provider. Fire and theft claims are not covered under this policy, making it essential to explore additional insurance options if you seek more coverage.
Third-Party Liability Insurance (Theft and Fire Coverage Included):
For those looking to enhance their basic third-party liability insurance, add-ons are available to cover theft and fire clauses. While this additional coverage increases the premium cost, it provides a more comprehensive level of protection.
What's the best type of car insurance for me?
With an understanding of the available car insurance options, it's essential to assess various criteria when determining premiums. Factors such as age, car brand, model, and year play a significant role in determining insurance rates. Individuals under 25 may face higher rates, and insuring sports, luxury, or older cars can incur additional costs.
Take the time to review each car insurance policy's coverage and consider your specific needs, including your car's brand, model, and age. The UAE insurance market offers a variety of options, so choose wisely, as your decision is a long-term investment. If you’re feeling confused, you can contact Shory’s insurance experts who’ll guide you in selecting the right insurance plan for you.
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