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Car Insurance! Why?

Car-Insurance-why

Well, none of us really are fans of unforeseen expenses and unpleasant surprises. But as they say prevention is better than cure, it is always a good idea to get your vehicle insured in case of any accidents. As we all know, Motor insurance is an absolute must and a car will have to be insured prior to registration in Dubai, UAE.

Broadly, there are two types of motor insurance – The ‘Third party only’ policy and a Comprehensive policy.

The ‘Third party only’ policy pays compensation for death or any bodily injuries and for damage to property of third parties. While the insured is treated as the first party and the insurance company as the second party, all others would be third parties. Any damage to your own vehicle will not be covered. This cover is suitable for old cars or if the car is used by a safe driver and not on a regular basis.

Comprehensive cover includes damage to the vehicle by accidental external means: fire, lightning, explosion, self-ignition, burglary, riot and strike, malicious acts, earthquake, flood, cyclone etc.

coversd-IconWhat are covered under Comprehensive Cover?

  • Any accidental damage or Loss to your own vehicle
  • Third party Liability
  • Third Party Property damage
  • 24 hours Road Side Assistance or Breakdown Recover

Optional Covers

  • Personal Accident Benefit for the Driver
  • Personal Accident Benefit for the Passengers
  • Courtesy Car
  • Expansion if Geographic location covers (For Example: GCC Countries)

Obtaining-CarObtaining Car Insurance in UAE

There are car insurance provides in Dubai who can arrange cover online, or through telephone, and insurance brokers who can arrange quotes from various companies to choose from. To obtain car insurance, it is first necessary to possess a valid UAE residence visa and UAE driving license, with a minimum of one year validity. Proof of previous no claims discount, if any, should also be provided when arranging insurance, as it can make considerable difference in the cost.

Insurers generally require the following documents:

  • Valid passport with residence visa
  • UAE driving license
  • Vehicle details, age, and model of the car
  • Proof if no claims, if any.

Car-DriveFactors that affect your insurance premium:

What You Drive : The fancier the car, the more you’ll pay. Expensive sport cars are often expensive to fix in an accident and thus, cost more to insure. Additionally, flashy, red cars are more likely to receive speeding tickets than mom’s boring station wagon.

How You Drive: This is obvious. The more claims, the higher your insurance premium will be.

Where You Drive :Generally, due to higher rates of vandalism, theft, and accidents reported in a particular location, the insurance premium might go high if you are driving in such locations.

Age: Young drivers under 25 usually pay much more than drivers over 25.

Your deductible: Higher deductibles = lower premiums

MonyTips to save on the Insurance:

Compare:  This industry is very competitive and you have a huge assortment of companies to choose from. You may contact an insurance broker to have quotes from multiple insurance companies for a comparison.

Higher deductibles:  Try your best to opt for the highest deductible possible. A deductible is an amount that you pay when you get into a wreck or crash

Have all of your insurance in one place:  Often, the more types of policies you have, the more you save in discounts

Tailor Your Policy: Check how beneficial are the additional covers for you and remove those that are not relevant for you.

Avail your discount: If you haven’t made any claims previously you are likely to get more discounts. ASK for it. Also, ensure collecting the No Claim Certificate from the insurance companies to get this discount.

Happy and Safe Driving!!!

Article written by:
Deepa Kommineni
deepa@anib.com
600 5 25502

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