Everywhere in the UAE, getting Car Insurance is mandatory when registering a car in your name – be it a brand-new car or a used one. In other words, whether you are in Dubai, Abu Dhabi, or Sharjah, every car owner must get her/his vehicle insured. Failure to do so can result in hefty fines, temporary confiscation of the car, and more. Under the UAE’s RTA law, driving an uninsured vehicle is a punishable offense.

If you are looking to buy Car Insurance in Dubai and are wondering where to get started, you have come to the right place. We at Seguro Insurance are a leading Insurance brokerage companies in UAE . We have helped thousands of clients get their vehicles insured by trusted, reputed, and reliable insurers.

In this blog, our experts share with you the 5 most important things you need to know before you buy car insurance in Dubai.

Let’s get started!

1 There Are 2 Types of Car Insurance in Dubai

In Dubai as well as in other parts of the UAE, car insurance buyers usually have to decide between two types of insurance protection for their vehicles. The first one is basic insurance coverage mandated by the UAE law, also known as the Third Party Liability Car Insurance. It insures your car against legal liabilities arising due to the damages caused to the body and the property of a third person.

The second option is the Unified Car Insurance, also known as the Comprehensive Car Insurance. It not only covers damages and injuries to third parties but also provides insurance protection for your vehicle against damages due to accidents, natural disasters, theft, vandalism, and more.

Getting Comprehensive Car Insurance in Dubai is not mandatory, but it is recommended for worry-free living. Usually, it is more expensive than the basic Third Party Liability Car Insurance in Dubai.

2 You Can Opt for Car Insurance Add-ons for Better Protection

You can customize the Comprehensive Car Insurance plan with various extensions/add-ons to get a more personalized experience of insurance protection for your car. For example, you can include GCC coverage which insures your vehicle while traveling to GCC countries like Oman, Qatar, Kuwait, and Saudi Arabia. 

You can also insure your belongings like laptops, cell phones, sunglasses, etc. by adding Personal Belongings protection to your car insurance in Dubai. To insure your vehicle against services required on the road like car towing, tire replacement, fuel replenishment, etc., opt for the Roadside Assistance add-on. If you often venture off-road for some adventure, then adding the Off-road Cover will make sense for you.

Other add-ons for car insurance in Dubai include Car Rental Cover, Co-passenger Protection, Personal Risk Cover, and more. Choose your add-ons wisely to stay adequately protected as per your insurance needs.

3 Your Car Insurance Premium Depends on Several Factors

The premium for your car insurance in Dubai will depend on multiple parameters. For starters, for those who intend to drive their car by themselves, the key influencing factors might be their age, their history of driving, earlier insurance claims initiated by them, if any, and the brand, model, and year of manufacturing of the car.

Additional aspects might also be considered, such as their history of:

• violating traffic regulations
• leaving the vehicle unlocked
• not getting repairs and maintenance done on time
• not revealing to the insurance provider any modifications done to the car
• insurance fraud

The place of registration also matters. For example, Dubai is one of the most affordable cities in the UAE for getting car insurance. Car insurance in Dubai is cheaper when compared to many other cities like Abu Dhabi. In some cases, the country where you obtained your first driving license might also impact the premium you receive.

Each insurance company has a pre-defined policy on these factors. It is a good idea to check with your insurance provider beforehand about the parameters that might be affecting the premium that you will ultimately end up paying.

4 You Can Avail Discounts on the Car Insurance Premium

If you have been driving an insured vehicle for years now, and have a track record of driving many years without initiating an insurance claim, then you might be eligible for the No Claims Discount. It is used by insurance providers to reward safe driving that does not trigger insurance claims. The benefit is passed on to you as a discount on your annual premium amount.

If you trust your driving skills, you can also decrease the cost of your premiums by increasing the amount of Insurance Excess – i.e. the amount of money that you will pay when any claim is processed. However, high caution needs to be exercised before making such a choice, since it might make your insurance payouts less, leading to expensive repairs and restoration.

Other discounts might include the Zero Depreciation Cover, wherein the insurance company does not charge you the cost of depreciation of your car, 

5 Validity and Transferability of Car Insurance in Dubai

Car insurance in Dubai is usually valid for 12 months, although many insurance companies provide an additional validity of one month as an incentive to customers (i.e. the validity now becomes 13 months in total). Instead of monthly or quarterly premiums, premiums on car insurance in Dubai and other parts of the UAE usually need to be paid annually.

If your car insurance has been valid for less than 9 months, it cannot be transferred. However, after 9 months of validity, you can request your insurance provider to transfer the insurance to the new owner. The insurance company will then check the eligibility of the new owner and proceed accordingly. You can apply for a refund if your insurance provider refuses to transfer it to the new owner.

Insurance policies and documents are highly technical, and first-time car buyers are often confused about how to proceed with the matters at hand. If you have any queries about car insurance in Dubai, our team of experts is here to help. We are one of the best insurance brokerage companies in Dubai. Our empathetic, client-centric approach makes us the preferred choice of customers across the UAE.

visit https://www.seguroinsurance.ae for more information.