Got a new car? Congratulations! But before you drive your beauty around town, make sure you get the right type of insurance for your car. Dubai law makes it mandatory to buy an insurance before you can register and get your car out on the road. So if you do not know your insurance, you will be stuck with something the agent will stick to you at the time of delivery. So understand these five types of car insurance before you even go buy your car.
The Third Party Liability Insurance
The most primary and cheapest insurance and hence a mandate by the Law in Dubai. This insurance will help pay for any damage you cause when you damage another car by accident. It will cover any bodily injury and property damage to any third party car that you hit but it will not cover any damage done to your car. In short, when you hit a car, it will take care of damage you’ve done to his car but you have to pay to repair your own car.
Quick tip: Buy the third party liability insurance if you own an old car or are buying a low-priced second-hand car for the house. Chances are the car’s repair cost will be less than the price you pay for a premium insurance to cover your car.
Third Party Liability Insurance with Theft and Fire Coverage
This is the basic third party liability insurance plus an add-on of theft and loss against fire. So you are covered if your car is stolen or damaged by fire. It will definitely cost more than the basic insurance but won’t be as expensive as the comprehensive policy.
Quick tip: Buy the third party liability insurance with theft and fire coverage if you own an expensive, mid-range car. It is advisable to be covered by theft and fire at all times. You will still have to bear with your own low-cost car repair.
Basic Comprehensive Policy
This is the most popular policy in Dubai. It includes the third party liability insurance plus it will cover your own loss. The police is detailed to cover your damage by almost all possible causes like accident, theft, and damage by fire and lightning. Although it will be more expensive than the third party liability, up to 5% of the value of the car, it offers way more and has a better value.
Quick Tip: Buy the basic comprehensive policy if you own an expensive car with higher repair costs. You will be covered by all angles which is a must for such expensive cars.
This is the basic comprehensive policy with the option of choosing a few add-ons to it. This can be a complete package for your car. Choose from free insurance in GCC countries, dealer repair, windscreen damage coverage etc. The policy will cover damage to your own car in an accident as well as the third party car you damaged. You are also covered against vandalism, theft, fire, water floods, and other natural calamities.
Quick Tip: Buy the comprehensive policy if you own an expensive car and do not want to take any risk with your car. Your policy will come in handy in events that may not be in your control but damage your car.
Premium Comprehensive Policy
This is the most expensive insurance policy in Dubai that covers everything under the sun. Most insurance companies offer this policy only to clients with high-end sports cars and luxury cars. This expensive policy is designed to cover everything in the comprehensive policy but for high-end cars as their parts and repair costs are higher than normal cars.
Quick Tip: Buy the premium comprehensive policy if you own a supercar. Because there is no way do you want to take a chance with your beauty!
Although there are five types of insurance policies in Dubai, technically you can differentiate them as two policies – The Third Party Liability and The Comprehensive Policy – with add-on options to them. Choose the add-ons based on the type and cost of the car and the way you are going to use it. Many insurance companies in Dubai offer these policies and each one would offer some extra add-ons and local offers to make their policy more attractive. Be sure you compare the pricing and offerings before you buy the policy. Also, do not forget to read the fine print that generally has a catch to it.