The UAE requires all car owners to acquire a car insurance policy, which plays an important role in providing financial protection to the insured in case of any road accident. As a general tip, basic online insurance UAE should always protect you from any “third party” costs that may arise from any damage or injury resulting from a road accident.
Lastly, the cost and coverage of insurance depends from one policy to another, but as a rule of thumb, wider insurance coverage is always equal to higher annual insurance costs.
A car insurance comes in two main types: TPL and comprehensive insurance. Below is a summary of the differences between the two:
Third Party Liability (TPL) : TPL is a
cheap car insurance that protects you only from “third party” costs that may include damage to property, vehicle, or injury to a person involved in the accident. However, it does not provide coverage for any damage to your vehicle.
Furthermore, the accident or damage must be caused by you, not by the other party. In case the accident was due to the other party, you need to wait until the other party’s insurance agrees to pay for the damage.
Comprehensive Insurance : A comprehensive insurance, as the word implies, offers a wider range of protection. Its coverage typically includes the following: 1) third party expenses, 2) damage to your property or vehicle due to an accident, theft, natural disasters, and vandalism.
Also, unlike TPL, comprehensive insurance covers all costs regardless of who was at fault on the road, making claims easier and faster.
Several factors affect the cost of car insurance, including the following:
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Age : Drivers under 25 years old are subject to higher premiums due to their shorter driving experience.
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Driving history : Drivers who can show proof that they’ve never been into a road accident via a "no claims" certificate can enjoy cheaper premiums.
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Car age : The older the car, the higher insurance mainly because old cars are more prone to wear and tear and repairs.
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Car value : Expensive cars imply higher premiums because of the cost of repair work and spare parts in case of any damage due to an accident.
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Car type : Online insurance for sedans, trucks, SUVs, and coupes have significant differences because of vehicular type and application.
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Policy coverage : As in other types of insurance, availing coverage add-ons such as repair or car replacement equate to higher insurance premiums.
Car insurance applications require documents that serve as proof of eligibility, including the following:
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Driver’s license
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Emirates ID card
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Vehicle Registration Card (mulkiya) or the dealer’s quote or transfer of ownership document
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A "no claims" certificate in case you want to avail the no claims discount