car insurance in Dubai

Everything you need to know about car insurance in Dubai

 

Having car insurance is essential for driving all kinds of vehicles in Dubai; in fact, it is mandatory by law. Based on the type of insurance you purchase, it can cover damages ranging from car crashes to even natural disasters. Regardless of whether you’re a new expat getting used to the roads of this exciting city or currently a long-term resident, it’s important to know how car insurance works in Dubai so that you can protect your car and have peace of mind. Worry not, however; this guide will provide you with everything you need to know about acquiring car insurance in Dubai, from picking the right policy for yourself to knowing what the laws say and even giving you secret tips on how to save money while still having a completely insured car.

Choosing car insurance in Dubai can be tough, especially when you’re doing it for the first time. However, we have your back.

Below, we define what car insurance is, list different types of car insurance, and car insurance companies to choose from. In addition, you’ll find some tips to help you compare and choose the right insurance company.

By the end of this blog, you’ll have all the information you need to choose the right policy and insurance provider in Dubai.

 

What is Car Insurance?

Car insurance is a contract between you and the insurance provider. You pay a premium to the insurance company in exchange for protection against injuries and financial losses due to an accident. Based on the type of policy you choose, your car insurance may cover the following:

 

  • Your Car Repair or Damage Costs
  • 3rd Party’s Medical Bills
  • 3rd Party’s Car Repair or Damage Costs

 

Now that you know what car insurance is, let’s learn about the common types of car insurance in Dubai.

 

What Types of Car Insurance Policies are Available in Dubai?

Here are the most common car insurance policies in Dubai:

 

Third-Party Liability (TPL) Insurance

If you have a car in Dubai, the law requires you to at least have third-party liability insurance. In this type of insurance, the policy covers the damages your vehicle causes to another person’s vehicle. It also covers the medical expenses in case of injury or death of the 3rd party. Every car on the road in Dubai is required to have Third-Party Liability insurance or at least a minimum amount of coverage. As you could assume, Third-Party Liability insurance does indeed cover any damage to a third party or their property caused by your car. It is one of the most economical options when it comes to car insurance. However, it offers limited protection as it does not cover damages to your car

 

However, third-party liability insurance provides zero coverage for damages to your vehicle.

 

Let’s take an example. Imagine you’re driving your car on the beautiful Sheikh Zayed Road and rear-end a car in front of you. As a result, both you and the car you hit get damaged. Also, you and the other party get minor injuries.

 

In this case, your third-party liability insurance will cover the cost of repairing the 3rd party’s car and their medical expenses. However, you will have to pay your medical bills and car repair costs from your pocket.

 

This policy type is the most common and affordable one in Dubai.

 

Comprehensive Car Insurance

Comprehensive car insurance takes protection to the next level. In addition to covering damage to the 3rd party, this type of insurance also covers your repair expenses. Full Comprehensive Insurance may be the one for you if you are looking for more comprehensive coverage. This policy not only covers damage to your car but also to third party and property, regardless of whoever may be at fault. Moreover, It includes coverage against fire, accidents, and theft, with additional perks also included in the package, such as roadside assistance, which all varies based on the provider. It is legally mandatory for insurance companies to provide this policy at a maximum price of 3%–5% of the car value.

 

Let’s say you rear-end a car, damaging both your and the third party’s vehicle. In this case, a comprehensive insurance policy will cover the repair expenses for you and the third party. Also, this policy type offers you coverage even if there’s no third party involved, such as hitting a pole.

 

Generally, a comprehensive insurance policy covers damages arising from theft, natural disasters, damage done by animals, profanation, and more. However, to know what’s covered and what’s not, you can talk to your insurance provider.

 

Premium Comprehensive Car Insurance

Certain insurance providers offer premium, comprehensive car insurance. This insurance type specifically covers luxury or high-value cars and offers an extensive range of benefits. However, these benefits come at an extra cost paying 1% to 2% extra.

If you’re a luxury car owner and need extensive coverage for your ride, this insurance policy is what you need.

 

Top Vehicle Insurance Policy Providers in Dubai

Here are some of the best car insurance companies in Dubai:

 

Sukoon Insurance (formerly Oman Insurance)

Sukoon Insurance is one of UAE’s leading car insurance providers, with over 830,000 customers. They have multiple online solutions to make the claims process easier and focus on delivering customer satisfaction.

 

Sukoon insurance comes with all types of insurance policies, from 3rd party and comprehensive to privilege insurance. They offer amazing default benefits and several addons to boost your coverage. Also, Sukoon Insurance has a special plan catering to the needs of Tesla owners.

 

You can check their plans and quotes in detail here.

 

AXA Insurance

Another reliable car insurance provider in Dubai is AXA Insurance. They have been leading the Gulf insurance market for more than 68 years. AXA Insurance offers both third-party and comprehensive insurance plans that come with a host of benefits. Car repairs, off-road cover, and Oman cover are some of them.

You can check AXA Insurance’s website to learn more about their plans, benefits, and premiums.

 

Al Sagr Insurance

Al Sagr has been in the insurance industry for over four decades. You can buy both third-party and comprehensive insurance plans along with addons at affordable prices. Some of the benefits they offer include injury cover, roadside assistance, no claims discount, and more.

 

Click here to get an immediate quote from Al Sagr and learn more about their plans.

 

Noor Takaful Insurance

If you’re a religious person and want everything to be ethical, you’re going to love this insurance provider. Noor Takaful Insurance offers Sharia-compliant 3rd party and comprehensive plans with decent coverage.

 

You can get a quote to see how much this plan will cost you.

 

Adamjee Insurance

Adamjee Insurance Company Limited is a well-known Pakistani general insurance company listed on the Pakistan Stock Exchange. They have third-party, comprehensive, and own damage insurance policies at affordable premiums. Adamjee offers decent basic coverage plus several add-ons such as roadside assistance, concierge service, and more.

 

Check out the Adamjee Insurance’s to learn more about their plans and get a quote.

 

How to Choose the Best Insurance Provider in Dubai?

Considering these tips can help you compare and choose the best insurance in Dubai: 

  • Understand Your Needs: You should be clear about what you need. Be it 3rd party liability, comprehensive, or a hybrid plan. Also, you must know what add-ons you might need, such as roadside assistance, agency repairs, off-road cover, and more.

 

  • Default Benefits: Go for companies that offer a decent set of default benefits, such as 24/7 roadside assistance. This way, you can enjoy the benefits without paying anything extra for add-ons.

 

  • Repair Type: You need to decide what type of repairs you want for your car: agency or non-agency. Agency repairs often cost more but ensure high-quality parts. Based on your decision, you can choose an insurance provider.

 

  • Premium: Choose a car insurance in Dubai that fits your budget. However, this does not mean you should choose a cheap plan that offers sub-par coverage.

 

  • Customer Service: Your insurance provider should be easy to approach around the clock. Check their website for contact details. The fewer the steps to connect to an agent, the better.

 

  • Finances: If the insurance provider is financially stable, they’re more likely to pay your claims.

 

  • Check Reviews: Don’t forget to check reviews of the insurance companies you’re comparing. Also, ask your friends to recommend a provider they’ve bought insurance from.

 

Legal Requirements and Picking the Right Policy

When deciding which insurance to pick, It is important to understand the legal requirements in Dubai. The UAE’s Insurance Authority regulates the required minimum coverage, but many choose to get more coverage for extra security. It is important to consider your vehicle’s value, financial situation, and driving habits when deciding which policy to purchase. For example, if you own a high-end sports car or a luxury car, we’d recommend purchasing comprehensive insurance with add-ons such as off-road coverage, agency repair, and personal injury protection.

 

Secret Tips for Saving Money on Your Car Insurance

 

No-Claim Bonus: A no-claim discount is something that many insurers provide, and it can eventually cut your premium dramatically. However, It requires you to have a clean driving record.

Shop Around: Insurance companies differ greatly in their costs and benefits. Use price comparison sites to find the best offer.

Bundle Policies: Many insurance companies offer discounts if you combine the different policies that they offer, leading to lower total costs.

Greater Deductibles: You can reduce your rate by choosing a greater deductible. In the event of a claim, just be sure you can afford the deductible.

Paying Annually: Most insurers allow you to pay a single yearly instalment, which is much cheaper than paying monthly.

 

The Claim Process in Dubai

If you have unfortunately gotten into an accident, the claim process that you would have to go through is quite straightforward and hassle-free, as long as you have the required documentation. First things first, always contact and report to the police in the case of an accident to obtain a police report, which is part of the documentation needed for all insurance claims in Dubai. Next, contact your insurer as soon as you can to start the claim process. Gather all your important documentation, such as your driving license, insurance policy, vehicle registration, and lastly, the police report. The speed at which the claim will be processed varies between insurance companies, which is something to consider when purchasing car insurance.

 

Upcoming Trends: How Technological Innovation Will Affect the Insurance Industry

With the recent innovations in car monitoring systems, the future of car insurance in Dubai is looking quite promising. Innovations in car black box technology have led the tech to become more widely available, which allows insurers to offer more accurate personalized premiums based on the clients driving behaviour. Not only does this encourage the driver to drive more safely, but it also rewards safe drivers with monetary discounts on insurance policies.

 

Tips for Maximizing Car Insurance Benefits

Since you’re more familiar with the ins and outs of car insurance in Dubai, it’s time to maximize and optimize your car insurance benefits. There are many strategies that you can incorporate to make the most out of your car insurance policies. Here are some ways that you can use to maximize your care insurance benefits:

 

  1. Regularly Review Your Policy: Your circumstances may change over time, so it’s important to stay up-to-date with your insurance policies and benefits and make sure that they align with your needs. You may also come across additional benefits that you are eligible for but have yet to review.
  2. Invest in Safety Features: Installing cutting-edge safety equipment in your car can save you insurance costs while also improving your safety while driving. Having features like lane departure warning systems and anti-theft devices may make your vehicle eligible for discounts from certain insurers.
  3. Maintain a Good Credit Score: It may shock you to learn that your credit score affects the cost of your insurance. Credit-based insurance ratings are a standard tool insurers use to evaluate risk and set prices. You might be able to get a reduced rate if you continue to have a reliable credit score.
  4. Insurance Rewards: Besides many other discounts your insurance may offer based on your driver profile, you may also be eligible for royalty rewards for sticking with the same insurer.

 

Ultimately, you have to ensure that you’re not only fulfilling the permitted conditions but also getting the most out of your coverage by putting these strategies into practice and being proactive about managing your car insurance. Never forget that knowing the ins and outs of your car insurance can increase your financial stability and provide you with more peace of mind when driving. Travel carefully, and I hope you have a rewarding and easy experience finding the right car insurance for you!

Now that you know what types of car insurance policies are available in Dubai, you can easily decide which one you need. However, make sure you consider the above tips when comparing car insurance providers to make an informed decision.

 

FAQs

 

Is car insurance in Dubai mandatory?

Yes. You must have the minimum required coverage to register or drive a car in Dubai. By minimum, we mean 3rd party liability insurance. However, you can always upgrade to a comprehensive policy if you wish to expand your coverage.

 

How much is car insurance in Dubai?

Usually, car insurance in Dubai is around 1.25% to 3% of the car’s total value. However, the actual amount could vary based on multiple factors, including the driver’s record, the driver’s age, the car’s value, and more.

 

What is basic car insurance in Dubai?

Basic car insurance refers to third-party liability insurance that offers minimum coverage under federal law. This type of insurance covers damages your vehicle causes to 3rd party’s vehicle. Also, any injury inflicted on the 3rd party is covered.

 

What if someone rear-ended you, and you have a 3rd party insurance?

If you’re involved in an accident you did not cause, the other party’s third-party liability insurance will cover your repair expenses and medical bills.