Car Insurance in UAE

Insuring is the first and foremost step needed to be taken after buying a car in UAE and other Emirates. With the rise of Online Car Insurance market, policy premiums are now available at a cheaper cost. Before saving your money you need to have a brief idea about which type of car insurance is required. To reduce your stress we have outlined UAE Car Insurance types, Policy Inclusions and Exclusions.

1. Third Party Liability Insurance (TPL)

TPl is mandatory as per UAE law. It is the most basic and cheapest form of coverage options available. Third Party Insurance covers damage caused by the insured vehicle to other party. The Insurance Company is not liable to pay for any damage caused to the insured vehicle and people in the vehicle. For cheap car insurance premiums you can go for Third Party Liability (TPL) basic Policy.

Policy Inclusions:

• Policy covers injured Third Party i.e. A person or passengers in the third party vehicle
• It also covers property damage caused to the third party vehicle by the Insured Vehicle.

Policy Exclusions:

• Damage caused to the Insured, the Vehicle Driver or the persons hired by the Insured if they are injured during work.
• Accidents related directly or indirectly to natural disasters such as floods, tornadoes, hurricanes, volcanoes, earthquakes.
• Accidents occurred outside the borders of the state.

Third Party Liability Insurance with Add-Ons

TPI covers only damage caused to the Third Party. We can enhance the basic plan with add-Ons such as Theft and Fire Coverage. The policy premium will increase if you wish to get these benefits.

2. Comprehensive Motor Insurance

As the name suggests the Policy covers injury to Third Party and also policy holder’s loss or damage. Though the policy premium costs you more but will be more helpful in case if you bought a new or expensive car with higher repair costs. The policy has a detailed coverage on damage caused by accident, theft, fire, lightning as well.

Comprehensive Coverage Add-Ons · Fire and Theft

This add-on protects your vehicle against fire accidents caused due to accident or by nature and theft of vehicle parts.

• Personal Accident Protection

Protection towards the bodily injury sustained by vehicle driver or passengers during an accident. The add-on comes in need during medical expenses and hospital bills. This is the 2nd most popular Car Insurance add-on in UAE.

• Off-Road

This add on Insurance covers vehicle owners from risky journey when going off the road. Insurer should check the borders of his travel with his Insurance Company.

• Replacement Car

Road accidents can leave your vehicle completely isolated to run further. With this add on Insurance Company will provide another substitute car while your car is being repaired. Replacement Car is the top most purchased add-on cover in 2018.

• Zero Dep

Zero Depreciation Cover offers full settlement of damaged vehicle without calculating the value with age of vehicle. This add-on is only applicable to newly purchased cars.

• Agency Repairs

In this add-on, vehicle repair service will be carried out at the Company’s Workplace. Any damaged part of insured vehicle will be replaced with original spare parts.

• Oman Coverage

Extended country insurance coverage to bordering country Oman. The add-on only protects insured vehicle but not damage caused to the third party.

Policy Exclusions:

• Accident caused when driving under Influence: If the person driving Insured vehicle is under the Influence of Drugs or Alcohol, Insurance cannot be claimed.
• Purposive Accident: If the accident and damage was done intently, insurance will not be provided
• False Information: If wrong information is produced to the insurance company at the time of insurance purchase, your claims will be disallowed.
• Misuse of Vehicle: If the vehicle is driven for other purpose which was not in the insurance policy, your claims will be rejected.

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