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January 03, 2022

Car Insurance Policy - Key Features and Benefits

Car Insurance Policy- Key Features and Benefits

Read through the benefits of all types of car insurance explained in detail before making any decision.

Key Features and Benefits of Car Insurance Policy

  • Introduction

Car insurance is mandatory in the UAE and finding one that fulfils your requirement and budget needs can be simplified by working with a trusted insurance broker. An insurance coverage for your vehicle protects you and your family financially in emergency situations such as accidents and even natural calamities, depending on the type of car insurance policy chosen 

But the question is which car insurance policy is the best for you? It is simple. Work closely with an insurance broker who will help you understand the policy in detail by drilling through the details of insurance coverage, premium, inclusions, exclusions etc. 

  • Types of insurance in UAE

There are mainly two types of car insurance in the UAE: Comprehensive Car Insurance and Third-Party Car Insurance. 

Car Insurance is essential for any vehicle owner. The reason being so many risks associated with driving a car on the road. In the UAE, car insurance is also a legal mandate and driving without one is considered a punishable offense. Fortunately, there are several car insurance plan options available to suit various requirements and budgets. Broadly car insurance in the UAE can be divided into two categories – Third Party Car Insurance and Comprehensive Car Insurance.  Third party car insurance is the most basic of two and is the minimum legal requirement for car owners in the UAE. Comprehensive or full car insurance as the name suggests offers a higher coverage. The benefits of both of these insurance types are explained in detail below: 

  • Benefits of Comprehensive Car Insurance 

  1. Comprehensive Car Insurance, also known as full car insurance covers damages to your vehicle, 3rd party vehicle and any bodily injury to those involved during a car accident
  2. Comprehensive car insurance in the UAE is one of the most effective ways to protect your vehicle. This type of car insurance plan covers damages caused theft, vandalism etc. which are not covered in a third-party car insurance plan
  3. Unlike a third-party car insurance, a comprehensive plan also offers coverage against natural disasters such as sandstorms, rains,  etc. 
  4. A comprehensive car insurance can be customized as per needs, with add on cover options such as passenger cover, rent a car option etc. 
  5. Since comprehensive car insurance offers extensive coverage, it usually ensures peace of mind for car owners 
  • Benefits of Third-party Liability Car Insurance

  1. In the UAE, third-party liability insurance is the most basic level of coverage required by UAE law. It is the most suitable insurance for those who are looking for highly affordable car insurance options 
  2. In the unfortunate situation of a car accident, a third-party car insurance covers damages caused to the other vehicle/s involved. 
  3. A third-party car insurance also covers bodily injury to both parties in case of a car accident 
  4. The process of buying a third-party insurance policy is easy and simple. Just as buying, the renewal of your policy is also possible with just a few clicks 
  5. Generally, the premium amount for third-party insurance is comparatively lower. The premium and coverage vary from one insurer to another, depending on the car, model, drivers age, etc.  variant of your vehicle.
  • Conclusion

While comparing the policies of different insurers, ensure you are working with a trusted insurance broker who can understand your needs. Irrespective of the kind of car insurance policy you choose, the process of choosing a car for your vehicle can be daunting, having an advisor who can offer you multiple car insurance option plans to choose from, explain the pros and cons of your policy and offers advice, assistance through the entire decision-making process, and support you during claims is important. 

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