January 04, 2022

Types of Car Insurance In UAE Explained

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

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

Types of car insurance in UAE Explained


  • Introduction

When we spend our hard-earned money, we always prefer products or services that give us the maximum benefit and make our lives easier. To obtain these, thorough research is mandatory. The same is also applicable in case of insurance policies for your car. We should buy the best insurance coverage that suits our requirements and fits our pocket. Here, insurance brokers help us make the wisest choice and avoid any confusion. 

Car insurance or motor insurance is a mandatory requirement for all car owners in the UAE. Hence, there are multiple car insurance options available in the UAE. That being said, an insurance broker can make the process much easier and will also save your time by understanding your coverage needs and finding you the most suitable option. An insurance broker can also help you avail better premiums, by negotiating discounted rates with insurers, adding no claims benefits etc. 

There are two types of car insurance coverage in the UAE: Third-Party Liability Insurance and Comprehensive Car Insurance Cover. Read to know more about them in detail.

  • Third-Party Liability Insurance

Insurance is one of the most important decisions to make when buying a car.

One of the most basic insurance coverage in the UAE is third-party insurance, which is also the more affordable car insurance plan.

For instance, Third-Party Car Insurance protects you from any legal liability arising from an accident you may cause, or the one caused by someone else while driving your car. Third-Party car Insurance covers physical injury, property damage, and liability to the third party involved in an accident.

It covers legal liability from damage to third-party property and also in case of injury. But, if the accident is caused due to your fault, the insurer will not cover expenses related to your vehicle. Moreover, a third-party insurance does not cover damages caused by illegal activities such as driving under the influence of alcohol etc. 

  • Comprehensive Car Insurance Coverage

Did you know that Comprehensive Car Insurance can cover damage to third-party property, as well as your vehicle? Additionally, Comprehensive Car Insurance can protect you financially in case of any loss or damage to property that was not owned by you but damaged by your vehicle. 

Comprehensive Car Insurance can cover up to AED 1 million against expenses arising from an accident. Fully comprehensive insurance gives protection to you, your passengers, and also your car, even in case of an accident caused by you or even a third party.

End-to-end coverage: Comprehensive car insurance cover means that it can cover any eventualities that may arise. It includes protection against crashes, theft, fire, etc. To attain the maximum benefit of insurance, you should select the Comprehensive Car Insurance plan

While comprehensive car insurance is higher priced, it also offers substantially higher benefits, so it is worth the additional cost. 

Comprehensive car insurance can also be availed with add on such as rent a car facility, passenger cover, etc. to cover your needs. 

It is worth noting, neither of the two insurance types cover damages caused by performing activities deemed illegal in the UAE, such as driving under the influence of alcohol etc. 

Before deciding on car insurance, you need to be thorough with the plan. An insurance broker can help you analyse your needs and will suggest you customer-friendly plans offered by several insurance companies in the UAE. So, if you are looking for car insurance coverage from a reliable source, consult a broker at the earliest. 

  • Conclusion

There are several insurance providers in the UAE. But do not go with the first provider you come across. Comparing different insurance providers is the key to finding the policy that is best for you. An experienced insurance broker will not take much time in understanding your requirements and making a decision.

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