Car Insurance in Dubai (UAE)

Here are the benefits of having car insurance:

• Protection from loss or damage to your vehicle
• Unlimited liability for third-party death or injury claims
• Indemnity for third-party property damage
• Protection from financial liability

Know the difference. Third-party liability insurance provides coverage for the damage and injuries to a third person in the event of an accident. It also offers coverage for damage to another person’s property or public property. However, TPL insurance does not cover the expenses for damage to your own car.

Comprehensive car insurance will not only cover the damage mentioned above, but it will also cover the loss or damage to your own car too. Even though a comprehensive policy may be more expensive, it makes more sense to opt for it vs. a TPL policy, so that you do not have to pay from your own pocket for your car’s repair and replacement costs

Insurance companies in the UAE guarantee financial coverage for repairs needed as a result of car accidents. However, instead of paying the policyholder, insurance agencies will have the repairs done through a contracted automobile repair agency.

Agency repair cover is an add-on purchase to your regular car insurance policy and is ideal for all expensive four-wheeler owners. It guarantees that an authorized dealer of your vehicle will repair the car during the claim process. Keep in mind that repairs made at these agencies are more expensive than repairs done at a general garage. You would usually pay an additional amount to add agency repair coverage to your car insurance plan. Consider the age and value of your vehicle when deciding whether to opt for this coverage.

In Arabic, Takaful means ‘solidarity and cooperation among group of people’. Takaful insurance is a form of co-operative insurance in compliance with Islamic Shariah, which is based on the concept of shared contributions and mutual co-operation between the participants to compensate one another in case of loss.

Takaful insurance is essentially distinguished from conventional insurance by the fact that premiums are regarded as “contributions” to a mutual fund established with an agreement of mutual assistance and of solidarity among the members of a community in case of loss or damage suffered by one of the members. Takaful is, therefore, a mutual agreement to share the occurrence risk of an unfavourable event affecting a member of the group.

Yes, auto insurance will cover scratches. However, the scratches must be caused by a peril covered in your policy, like a car accident, collision or vandalism.

The rules of the road even apply to parking lots. If you file a claim following a minor accident that occurred in a parking lot and if you have collision coverage in your insurance policy, your auto insurer will handle it the same as any other type of claim: they will investigate, determine fault, and pay out damage accordingly. If you don’t have collision coverage, and you are at-fault for the accident, you may have to shell out money for any damage to your vehicle. Depending on your deductibles if it is meagre, it may not be worth filing a claim.

Car insurance is a financial product that provides protection against financial losses resulting from accidents, theft, or damage to your vehicle. It offers coverage for damages to your car, third-party liabilities, and personal injuries, ensuring peace of mind while driving.

In the UAE, the fine for driving with expired insurance can range from AED 500 to AED 1,000, along with four black points on your driving license. Additionally, your vehicle may be impounded, and you’ll be unable to renew your vehicle registration until you acquire valid insurance.

Your car insurance policy number is typically mentioned on your insurance documents provided by your insurer. You can also find it on your insurance card or by logging into your insurer’s online portal or mobile app. If you’re unable to locate it, contact your insurance provider for assistance.

To claim insurance for a car accident in Dubai, follow these steps: Notify your insurer immediately, gather evidence such as photos and witness statements, fill out the claim form accurately, submit all required documents, and cooperate with the insurer’s investigation. Your insurer will guide you through the process and assist in processing your claim efficiently.

A ‘No Claims Bonus’ (NCB) is a reward given to policyholders who haven’t made any claims during their policy term. It’s a discount on the insurance premium and accumulates each year without making a claim. NCB encourages safe driving and can significantly reduce insurance costs over time.

‘Own Damage’ refers to the coverage provided for damages to your own vehicle in the event of an accident, theft, or natural disasters. It includes repairs or replacement costs for your car’s damages and is an essential component of comprehensive car insurance policies.

Yes, insurance providers in the UAE offer customizable car insurance policies tailored to your specific needs and preferences. You can choose coverage options, add-ons, and deductibles according to your requirements, ensuring you get the most suitable protection for your vehicle and driving habits.

Yes, you can transfer your vehicle insurance plan to another car owner when transferring car ownership in the UAE. Both parties need to visit the insurance provider’s office to complete the transfer process, ensuring the new owner gets coverage for the vehicle.

To purchase car insurance in the UAE, you typically need the vehicle’s registration card (Mulkiya), your Emirates ID or passport, and your driving license. Additional documents may include proof of residence and vehicle details if purchasing online or through an agent.