Car insurance plans provide you coverage against any damages that your car may encounter. Insurance companies provide Car Insurance UAE against accidents and even against natural causes such as flood, storm earthquake, etc.
In UAE, car insurance plans can be broadly divided in following four categories:
Third party, fire and theft
Comprehensive or fully comprehensive
Comprehensive with few extra options
Comprehensive, premium level
Third Party, Fire and Theft
In UAE, you cannot get your car registered unless and until you have signed up for a car insurance plan. According to law the minimum requirement is coverage against Third Party, Fire and Theft. In this case the insurance company, such as Axa Insurance Dubai will not entertain any claims in case of accidents or other mishaps. People who intend to secure car insurance just for the sake of fulfilling the requirement for registration of car usually opt for this scheme.
Comprehensive or fully comprehensive
Risk aversive people who want to cover all the damages that the car may face once it is on road usually opt for a comprehensive insurance plan. A wide range of damages or loses to the vehicle due to natural or accidental causes are covered under such a scheme. The Car Insurance in Dubai is usually done at 3-5% percent of the vehicle value. The insurance companies also put some conditions regarding which loses and damages are to be considered under the policy and which not.
Comprehensive with few extra options
This insurance company offers everything that a Comprehensive or fully comprehensive does with few extra features such as a special bonus in case no claim has been made under the policy in a given time period, free vehicle insurance in GCC countries, free rent-a-car services. Premium equivalent to 3-10% of vehicle value is charged.
Comprehensive at the premium level
The most expensive vehicle insurance option is Comprehensive at premium level. Besides providing coverage to your car, this plan also entertains the claims of other people whose cars have been damaged by you. This insurance plan is not offered to everyone; only selected clients get an access to this plan and can avail it by paying an extra 1 or 2%
Like any other insurance package, car financing in Dubai also follows the role of gaining more by investing more. If you opt for higher premium value, the coverage offered will be comprehensive.
In UAE, car insurance plan is a legal requirement but selection of the plan depends on your needs. In case you think that risk factor of owning a certain car is higher as compared to another, you can choose an insurance plan that can best mitigate your risk.
Like another insurance plan, car insurance also has certain criteria. In UAE, a car cannot be registered unless and until it is insured through any Dubai Car Insurance. Selection of an insurance company, therefore, arises as soon as you finalize to own a vehicle. The trick of the game is to conduct enough research and know the best deals in town. You should exactly know the amount that you can regularly pay as insurance premium. As this expenditure is not a onetime expenditure, enough calculations have to be done.
Applying for UAE Car Insurance also requires certain documentation such as provision of car papers, your driving license, bank statement, etc.
Eligibility Criteria
Like other financial borrowings, insurance packages also have certain criteria on which the cases of car insurance are assessed.
Age plays a vital role in defining your insurance value. Males below 25 years of age are considered riskier drivers and hence, insurance is expensive for them as compared to females of the same age or males above 25 years of age.
Insurance value also depends on car’s brand, make and model. There are few cars insurance for which is very expensive. Therefore, it is important that before finalizing the car insurance, consequences are also considered. Many people signup for insurance even before the actual purchase of the car.
Sports cars and fancy/luxury cars are also expensive when it comes to insurance.
Insurance package for cars that have been in use for 5-8 years also differs from the packages for new cars. Insurance for all elements are not covered in such cases.
Like medical insurance, the Motor Insurance Abu Dhabi and all over UAE also offer two kinds of interest rate, balanced interest rates and fixed interest rates. Both these rates have their pros and cons. balanced interest rate, however, decreases with the passage of time while foxed interest rates remain same for the entire insurance period.
Interest rate should be selected keeping in mind your payment schedule. As no claim history is an added benefit to your application, insurance companies in UAE accept no claims bonus certificates from across the boarders as well. Based on this certificate, an individual can earn a discount of 0-40%
In UAE, almost all car insurance companies follow the same pattern and offer the same features. Few of them are listed as below:
The amount of premium will depend on your preferences. The more benefits and coverage would mean higher premium.
Car insurance contract once signed can be shifted from one insurance company to another. This is admissible for Comprehensive at the premium level schemes.
Insurance value will depend on the value of your vehicle as per the insurance company.
Car depreciation value is always considered by the insurance companies while offering an insurance package.
The claims are settled on the current depreciated value of the car rather than considering value of car at the time of signing the policy.
To keep your policy at the same value, without considering depreciation value of the vehicle, an extra premium has to be paid.
Insurance companies also offer features such as road side insurance; which means if your car breaks down, the insurance company will send help.
In UAE, car insurance cannot be avoided as it is a prerequisite to vehicle registration, you can get enough information about different companies in the industry through personal references. Do your homework well, ask people about the dealings and packages offered by different companies
Select the plan and the company that is affordable, remember, in case of nonpayment of premium, the companies have the right to start legal action against you. Late payments can result in late payment fee and in some case cancellation of the insurance plan as well.
Features of Car Insurance
