5 Important Things to Understand About Car Insurance in the UAE

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Driving in the supercar capital of the world is truly an unmissable experience for most expats – and a lifeline for commuters. But, no matter whether you have invested in a luxury vehicle or a city car, you’ll need insurance before getting behind the wheel. 

Driving uninsured in the UAE can lead to hefty fines of 500 Dirhams ($136) or more, as well as four black points to your license and temporary vehicle confiscation. Luckily, you can prevent all this and enjoy a safe, stress-free driving experience by investing in the right car insurance. 

Here’s what you need to know before getting started. 

You’ll Need at Least Third-Party Liability To Drive Legally (but You Should Probably Opt for Comprehensive Insurance)

According to local legislation, third-party liability is the minimum level of coverage required to drive legally in the UAE. This type of cover is usually cheaper, but it will only provide coverage for the damages reported by other vehicles and people in an accident. 

That is why most drivers opt for comprehensive car insurance plans, which also financially protect you against the collision and non-collision damages you and your car have reported. Comprehensive policies can also help you recoup the damage caused by malicious acts, theft, and fire. 

You Must Have a Valid Driving License and the Vehicle Registration Card To Obtain Car Insurance

The process of obtaining a car insurance policy in the UAE is fairly straightforward, but it will require you to present some key documents, including:

  • A copy of your passport
  • A copy of your visa
  • A copy of your driving license
  • A copy of the vehicle’s registration card or proforma invoice

Pro tip: if you are looking to relocate to the UAE for six months or more, you might need to exchange your foreign driver’s license for a local one. For this, you might need to produce documents such as your Emirates ID and a No-Objection Certificate from your employer.

Your Insurance Costs Relate to the Value of Your Vehicle

Car insurance costs can vary greatly, depending on your insurance provider and car type. Generally, you should expect to pay around 1.25% to 3% of the vehicle’s value in insurance premiums. 

However, there are ways to reduce your overall car ownership costs. For example, opting for a less expensive car or installing a GPS vehicle tracking system and other security features can drive down your insurance premium. Your age, driving experience, and accident history will also be taken into account by your insurer. 

You Can Get Online Quotes for Car Insurance

The UAE offers highly advanced systems for comparing insurance plans and coverage types. For example, shopping for car insurance with Insurance Market and other online marketplaces allow you to obtain quotes in real-time and from the most respectable insurance agencies in the UAE. 

But comparing plans through reputable online platforms isn’t only the key to reducing insurance costs and finding a personalized plan. Indeed, car and health insurance scams are on the rise across the UAE, which may lead to hundreds of dollars in losses and unprotected driving. 

A reliable insurance marketplace can help you check other users’ reviews, verify that a provider is legitimate and reliable, and access policies that have been vetted by the UAE’s Insurance Authority.

Consider Add-Ons To Customize Your Policy

If you have just moved to the UAE, you might be looking to reduce your expenses and readjust your budget. However, there are some purchases you really shouldn’t skimp on – especially when it comes down to insurance policies. 

While it might be tempting to opt for basic coverage (i.e.: third-party liability only), this kind of policy might not provide all the coverage you need. Make sure to review your lifestyle and driving preferences, and invest in add-ons such as GCC, breakdown, and off-road coverage, as well as emergency services. 

These options might drive your premium up – but you can’t put a price on road safety!