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Types Of Car Insurance in UAE

When you’re buying a new car or searching for car insurance in UAE, you should be aware of the different types of coverage available. If you’re in a car accident, you can choose from a range of car insurance coverages to help protect your vehicle, passengers, and yourself. If you are searching for car insurance in Dubai, you should be aware that there are primarily two types of policies available. However, the coverage given is something you should investigate further.
 


Let’s take a look at the different forms of car insurance that you can obtain in UAE.

Comprehensive Car Insurance Policy:

This is a strategy that protects you from both third-party and personal loss or injury. This includes loss/damage/loss caused by burglary, fire, external explosion, accidental collision, lightning, self-ignition, theft, and even malicious acts by a third party. Insurance firms are required by law to offer this scheme at a maximum cost of 3% to 5% of the vehicle’s value. When purchasing this type of auto insurance, you must read all of the documents carefully to ensure that all of the information provided to you is right.Theft, profanation, arson, natural disasters (such as hurricanes), dropping objects, animal damage to your vehicle, and civil unrest are all protected by robust insurance policies (like a social riot that results in damage to your car).


Third-Party Liability Policy:

This is a very simple level of coverage that is required by UAE law. This includes any third-party death or physical harm, as well as property damage incurred by the insured party’s car. This policy does not cover loss or harm to your own car unless the other party is at fault, in which case you must file a claim with their insurance company.

Third-Party Liability Insurance (Theft and Fire Coverage Included):

This is an optional coverage that includes burglary and fire provisions that aren’t covered by standard third-party liability insurance. If your standard third-party liability policy only covers third-party injury, you can add theft and fire coverage as add-ons. Please keep in mind that this add-on increases the premium price.

Comprehensive Car Insurance Policy with Add-ons:

This covers all listed above and gives you the choice of receiving additional treatment. This policy provides add-ons such as dealer repair, free rental vehicle, no-claim discounts, and free insurance in GCC countries for an additional fee. The average sum ranges from 3% to 10% of the car’s worth, depending on the business and whether or not a no-claim bonus is used.

Premium Comprehensive Policy:

As the name implies, this is the most comprehensive insurance policy available in the UAE, covering almost anything you might need in a car insurance policy. This policy is usually only available to a select group of clients who own sports or other high-end vehicles. This form of program is only available to a select few clients who pay an additional 1% or 2%.If you buy a luxury car, you can look into this insurance policy because it provides comprehensive coverage for your vehicle.
Now that you’re familiar with the various forms of auto insurance on the market, let’s look at some simple premium calculation requirements. You could be entitled to higher insurance premiums if you are under the age of 25. The cost of insurance is also determined by the car’s make, model, and year. Car insurance plans for sporting, luxury, or older vehicles (more than 5 years) can be more costly than the average. It’s a good idea to read through each car insurance policy and the coverage it offers. You should also bear in mind the make, model, and age of your vehicle. In the UAE insurance industry, there are a variety of car insurance options to choose from, but you must choose carefully because this is a long-term investment of your hard-earned money.