While insurance companies in the UAE can have different names for various car insurance types and packages, most fall under two broad categories:
- Third Party Liability Insurance: This type of insurance provides the minimum level of coverage required under UAE law. Damages caused to another vehicle by your car and coverage against death or bodily injury to any third party in the UAE will be covered under this insurance. Damage done to your own car will not be covered.
- Comprehensive Car Insurance Coverage: This type of coverage is the more expensive option as it covers damage to third party vehicles and damage done to your own car. Other potential causes of damage such as fire, theft, collision, damage sustained from hitting an animal and glass damage will likely be included. Comprehensive car insurance coverage cover is available for most cars in the UAE, with the exception of cars that are older than 7 years, which are often only eligible for third-party coverage.
Comprehensive Car Insurance Add-Ons
Most comprehensive cover will allow you to select add-ons for your premium at an additional cost. Some of these include:
- Theft (stolen parts, malicious acts)
- Fire (accidental fire, acts of nature)
- Death/Bodily injury (to person or property involved in third party accidents)
- Personal injury protection (PIP) covers medical costs of injuries to the driver and passengers of the insured car.
- Oman coverage offers protection to damage to your car that you’re responsible for when you enter Oman.
- Roadside assistance offers mechanical repairs, vehicle towing, battery boost, flat tires, lockout and emergency fuel delivery.
- Off road cover insures your vehicle on unmarked roads depending on the limitations. Do check the limitations on how far out in the desert the policy covers you for.
- Agency/dealership repairs which are different to “garage” repairs. This cover includes mechanical repairs from an authorized dealer’s workshop.
- Zero depreciation covers the entire cost of a claim without accounting for the vehicle’s depreciation if the insured car is brand new (only valid for new cars up until 6 months from the purchase date).
- Loss of personal items: This covers the damage to personal property belonging to you that is carried in the insured vehicle. The damage could arise out of an accident, fire, theft or attempted theft and should be evidenced in a police report.
[5 Must-Have Car Insurance Add-Ons For Your Policy!]
Exclusions of Car Insurance
Despite the fact that many car insurance add-ons are available to you, it is important to note that these options will not cover the following:
- Off-road coverage: This type of coverage is only available to vehicles with off-road features and capability. [e.g. 4 wheel drive]. Some insurance companies will only cover if the driver has an off-road license.
- Damages caused by driving under the influence: This type of damage is not covered by any kind of insurance in the UAE. If the insured vehicle suffers any loss or damage while being driven by a person without a valid driver’s license, your car insurance will not cover the costs.
- Deliberate accident loss: Loss or damages from “accidents” that were deliberate or intentional (staged) will not be covered by your insurance.
- False claims at the time of purchase: If at the time of purchase you claim facts that are not accurate on your application, your claim may be rejected.
Choosing The Right Car Insurance
Before you decide on an insurance policy, you should take several things into account such as your preferences, lifestyle, and driving history and experience as this will help you determine which type of coverage would best suit you.
If you are someone who frequently goes on Off-Road trips or long drives, off-road cover or coverage that extends to Oman will come in handy. Being single or having a large family is also something to take into consideration when purchasing car insurance. It is also a good idea to consider much coverage you will actually need. Here are a few tips to get you started:
- Conduct a careful evaluation of your preferences and priorities such as budgets, funds, and lifestyle.
- Consider the UAE’s minimum legal requirement for car insurance, the value of your car and your personal preferences. It is possible that you only require the very minimal coverage (Third Party cover), or you can decide to go for comprehensive cover.
- Be aware of all options available for you. These will depend on your vehicle, types of coverage, add-ons and other options. If you have specific preferences, the next step would be to determine if you would benefit by purchasing any add-ons. Comparing quotes from different companies will help you narrow down your options.
- Once you identify your coverage preferences, you can calculate the cost of the insurance cover you have chosen, along with the add-on covers. At this stage, you can adjust and make a final decision on the car insurance policy that meets your needs.
GAP Car Insurance
GAP, or Guaranteed Asset Protection insurance is essentially an add-on cover that can help pay the difference between the actual cash value of your vehicle and the amount still owed to the finance company in the event of an accident.
In the event of an accident, your car insurance may provide a settlement based on your car’s actual cash value, not the original amount you paid for it. A car’s actual cash value is the car’s monetary value at the time of the accident, not the car’s original price. This settlement may not cover what you still owe on your lease because cars depreciate in value very quickly. Comprehensive car cover is required in order to purchase GAP add-on cover and it this add-on is typically provided for cars that are less than 6 months old.
