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Motor Insurance in Dubai: Unknown facts

Written by Huma

motor insurance in Dubai

Motor insurance in Dubai has always been the talk of the town. Especially so around times of renewal. At those times getting the right and cheap policy will make anyones day.

But how to avail them is the real question?

Having motor insurance is required by the law of the UAE, so, people purchase it out of obligation.

Many people don’t even know the details of the policy that they have.

This is one of the major reasons that people end up paying a lot more for their motor insurance plan than they need to.

Motor insurance in Dubai, however, is not all about safety but also about the proper follow up of traffic and driving regulations.

Some people find themselves in a shocking and unfortunate situation when they learn that their insurance doesn’t provide coverage for their needs and at that point, it’s already too late.

It is better to know facts about the policy that you are about to purchase. If you don’t know about the inclusions and exclusions, you may have to pay from your own pocket at the time of need.

This means that buying motor insurance was just a waste of money for you.

Car insurance is not a cheap investment. So, here are some unknown facts that one needs to keep in mind while buying an insurance policy in the UAE.

Motor Insurance Dubai Unknown Facts:

Fact#1 Get your own car covered:

Many people don’t want to pay heavy premiums when it comes to motor insurance.

To avoid paying more money most people opt for third-party liability insurance.

It is true that it’s the more affordable option available but it’s also true that it does not provide coverage for your own car.

This means if you get into an accident, your insurance company will pay for the damages and loss of the third party involved.

If you were responsible for the accident then your insurer will not take responsibility for your loss.

You will have to pay for your own damage repair or any medical emergencies from your own pocket.

Many people are not aware of the fact that third-party liability insurance only covers for the other party’s damages.

Hence, when people file a claim for the coverage of their own loss, they are in for a disappointment.

Therefore, it is suggested to get comprehensive insurance. It may be a bit expensive but it will get you covered for damages to your own car. 

Fact#2 Age is not just a number:

The age of the policyholder and the driver matters when it comes to motor insurance.

  1. If your age is less than 25 years old, then you will have to pay a higher price to get your car insured.
  2. If the car was being driven by a person younger than 25 years old, at the time of the accident, then they will have to pay 10% of total damage if the accident was caused by them.
  3. This rule is applicable even if the car is registered and insured with another person who is above 25 years old.  

Therefore, the age of the car also matters. If the car is old then you may have to pay a higher premium to get it insured. 

Fact#3 Comparison of policies could save you money:

Don’t just go for the first insurance policy that you come across.

  1. Do your market research before making a decision. Buy the policy that fulfils your needs and requirements.
  2. In order to do so, compare different policies as all companies do not provide the same services at the same rates.
  3. You need to find a policy that matches your requirements and budget.
  4. You can easily get quotes from different insurers online and then compare them.

This way, you can save a good amount of money on your motor insurance.

Renewing your policy with your current provider is a convenient option but it is not the best.

Sticking to the same insurance company is not a good idea. Insurance companies keep changing their rates to improve profitability.

If your insurer offered you a reasonable rate last year, it certainly doesn’t mean that will be the case in the future too.

Hence, there could be other companies offering better deals for your car this year.

Fact#4 Get roadside assistance:

There are certain add-ons that could be added to your insurance policy. One of the most useful add-ons is roadside assistance.

This could help you when you are stranded in a deserted place. Or if your car breaks down while you are on an important journey.

This service provides roadside assistance like

  1. emergency fuel refill
  2. tyre change,
  3. mechanics
  4. Towing

Hence, for this, you may have to pay extra to get this covered but this could prove to be a lifesaver.

Fact#5 Get GCC coverage:

Not all motor insurance Dubai companies cover you when you cross the borders of the UAE.

If you need to travel a lot, then you can choose to get coverage for GCC nations.

In this way when you are travelling to the neighbouring countries, you don’t have to worry about the damages or losses.

Fact#6 No-Claims Certificate saves money:

A lot of people don’t even know about No-Claims Certificate. Those who know don’t consider it important enough.

If you haven’t been involved in any accidents recently and haven’t filed for any claims then you can ask your insurance provider for a No-Claims Certificate.

This certificate could help you to get a discount on your new policy. These discounts could go up to 30%.

Therefore, having A No-Claims Certificate could help you save a significant amount of money on the purchase of a new policy or renewal of the previous one.

Conclusion:

Motor Insurance in Dubai is based on certain fixed requirements but having the right car insurance is a choice.

People don’t think about the importance of car insurance until they need to file a claim.

It is suggested to invest some time, energy, and money in making the decision of buying a suitable insurance policy. Otherwise, it’s just useless.

You should be aware of the facts and information regarding car insurance. Get into the details of the policy that you are about to buy.

You should know the terms and conditions of the policy that you are purchasing. If you’re not satisfied with them then go for another insurance provider.

The market is full of insurance providers and there are a lot of options available when it comes to motor insurance in the UAE.

Pay a little extra money if you need to but don’t settle for the policy that you might regret later on.


Originally published Nov 18, 2019 21:41:55 PM, updated Nov 20, 2019

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