Car insurance in Dubai is one of the important businesses as the government has implemented some strict laws and rules for the drivers and the people who own a car in Dubai.
But how much are we really aware of the facts and laws made by the government in association with car insurance online in Dubai?
Cars have now become more of a necessity instead of luxury as in today’s date-time is more important than anything and it saves the time of transportation by almost 50%. That is why more and more people are buying their own car and ultimately this would lead to more and more people who will need to have motor insurance for their cars.
It is mandatory for anyone who possesses a car or any vehicle in Dubai to have car insurance or else they will not be allowed to legally drive in the city. People have to get car insurance at the time of registration of their cars themselves.
In UAE there is a huge number of insurance providers available to buy insurance from. Everyone has their own USP and terms and conditions this actually confuses the people to decide regarding which insurance to buy and how to get the right insurance policy? This question arises in their minds.
Everyone who owns a car has to buy an insurance policy in Dubai but not everyone is actually aware enough to read all the details before buying a car insurance policy. It leads to people overpaying for their insurance policies and, it is a known fact that most people end up paying more than is required for car insurance. Buying an insurance policy has become very convenient and accessible as due to the availability of online resources people now can get insurance at their fingertips but you also need to make sure you are choosing the right policy for you :-
Nevertheless let’s look at some facts which might help you to get aware of choosing the right insurance policy in Dubai:-
Facts about Car and auto insurance in Dubai:-
1) Age of the owner/driver Matters
You might have to pay more to get your car insured if you are below 25 years old. Drivers younger than 25 might have to pay 10% of the total damage caused and this rule applies to whole UAE. This is because younger drivers are more prone to accidents and they are riskier for the companies to get insured.
2. Know your type
As there are two kinds of insurance policies in Dubai primarily known as third-party insurance and comprehensive insurance, You have to choose either of them.
While comprehensive insurance gives you complete coverage against any mishaps and accidents as it not only gives compensation against any third-party liabilities but also gives protection against theft, fire, and accidents to the driver and owner including medical expenses due to accidents.
On the other hand, Third-party insurance is the minimum requirement to drive a car legally in UAE. And people mostly prefer it as it is comparatively cheaper than comprehensive insurance and it allows them to drive legally. But, when it comes to coverage it only covers against any third-party liabilities like damages to their vehicle and compensation against the medical expenses for the driver.
Third-party insurance is not a bad option if you are an expert in driving and have your own car but comprehensive insurance is actually recommended for the people having loans against their car and who are still not skilled drivers.
3. There is always a better deal than the best – Comparison is important
Before choosing any insurance policy you must compare and calculate various quotes from the insurance providers that you think match your needs. As there are a variety of insurance providers available online, Not, everyone would have everything that you need. You need to be smart and choose wisely according to your budget and needs.
You might think that you have chosen the best insurance policy in the market but there is always a better one than the best and it doesn’t only apply to insurance but also other sectors. So, choose according to your needs not in the influence of others.
4. You can expand your policy over other GCC countries
If you have to travel frequently across the GCC countries then this is for you as there is an option available for you to expand your policy across the GCC countries as many insurance providers do not keep you under the roof once you go out of the country but many do.
5. Leverage the benefits of a No-claim bonus
You get a No-claim bonus when you don’t claim any amount during the year and by doing this you can get a No-claim certificate from your insurance company so that you might get a discount of up to 30% in the next period. You can continue with the same provider or give this certificate to the new one in order to avail the same.
6. ISO ratings
ISO provides corresponding Symbol factors that insurers may use in determining premiums for individual policies. A vehicle with a far better Rating Symbol will have a far better premium than a vehicle with a lower Symbol if all other rating variables are the same.
7. You can ask for add-ons such as roadside assistance, Breakdown, and emergency services
You can ask your insurance provider to get the add-ons along with your insurance as it can be a life-saver in times of emergency. The time when you get stuck in the middle and see nowhere out then you can give a call to the company and they will help you to get out of the situation asap along with your vehicle repaired in their garage. So, choose the add-ons as per your demand.
8. Understand how your premium of auto insurance in Dubai is calculated
Car insurance premiums are calculated after considering the year, make and model of the car, the dimensions of the engine, claims history, and risk profile of the driving force. In the table below you'll find a number of the opposite factors which will affect your premium. For example, a driver with less experience will need to pay a better premium as compared to an experienced and older driver.
9. There are many factors due to which the level of insurance premium is determined:-
• If you've got a replacement car that has high safety features, the premium is going to below.
• If the price of your car is high, the premium is going to be high.
• If the age of the driving force is under 30, the premium is going to be high
• If you've got a coffee driving experience, the premium is going to be high.
• If you've got GCC coverage, the premium is going to be high.
• If you'd require off-road coverage, the premium is going to be high.
• If you'd require a breakdown coverage, the insurance premium will be high.
As getting auto insurance is compulsory in the UAE in order to drive legally you have to get your vehicle insured or else if you are found driving without one then you can get heavy penalties and can also face a ban on your driving license.
You have a variety of options available in Dubai to get insurance. So, don’t get influenced by the attractive offers and discounts do your homework and calculate and compare the policies according to your needs and budget and then only come to any conclusion.