UAE: It is mandatory for each car to have car insurance in the UAE as soon as it bought. It is a punishable offense if someone is caught driving a car without insurance. A fine of AED 500 is handed to the driver right away and four black points are added to the driver’s license. Even the vehicle will be impounded for seven days.
So, in order to save you from that trouble, this is a simple and handy guide to tell you how to obtain car insurance.
Types of car insurance in the UAE: Currently, there are only two types of car insurance in the UAE. They are:
- Comprehensive Insurance: It is also called the full comp cover which is higher level protection for the car. It pays for replacement or repair when your vehicle is stolen or damaged in an incident that’s not a collision. Comprehensive usually covers damage from fire, vandalism or falling objects (like a tree or hail).
- Third-party Liability Insurance: Third-party Insurance only covers the other car and passengers in case of an accident. While it costs much lesser in comparison to Comprehensive Insurance, it is so because you’ll have to pay for your own car to get it fixed.
Note: Vehicles purchased with the help of bank loans will have to be covered by a Comprehensive Plan like most of the banks in UAE will not allow you to purchase a third party plan.
Also, the year of manufacturing of the vehicle determines which type of insurance policy can be taken.
Documents which are required for Car Insurance in the UAE:
- Driving license
- Passport with visa stamp
- Vehicle Registration Card (Mulkiya)
In case of registration of a brand new car, a proforma invoice is required. It is important to carry originals and duplicates.
Note: Insurance policies are valid for 13 months.
Calculation of Insurance in the UAE:
Car insurance is calculated based on a number of factors including the age of the vehicle, size of the engine, make and model of the car, claim history and risk profile of the driver.
Additional Cover Options:
- Personal belongings cover
- Windscreen cover
- Dent repair
- Off-road insurance
- Fire & theft cover
- Replacement of locks
- Oman extension
- New car replacement
- Agency repairs
Places to get your car insurance in the UAE:
Most of the registration centers have at least one car insurance company representatives within their facility. This is the simplest and most rapid way to get car insurance in the UAE. Alternatively, there are several insurance companies around the UAE. So you can visit them, get their prices and compare them.
Note: It is best to check every detail before finalising any policy. Major attention should be given to pricing and what all is covered under the policy.
In case of sale of the car, what happens to the policy:
In case there are seven months or more pending on your insurance policy, it can be transferred to the new owner if they meet the criteria. In case it is of less than six months then the new buyer will have to take a new policy.
A refund can also be issued by the insurance company when there are more than or equal to seven months left on the policy. To apply for a refund, a legit proof that the vehicle has been sold has to be submitted. Also, a copy of the new Registration Card (Mulkiya) will do.
Note: Not all insurance companies give refunds, so it is important to check beforehand.
