What are the different types of Car Insurance in UAE one can buy?
COMPREHENSIVE CAR INSURANCE
Comprehensive car insurance covers damage to your car caused by events that are out of your control. It is an extensive car insurance plan that also covers the vehicle against third party liabilities and own damage. It covers things like theft, vandalism, glass and windshield damage, fire, weather/acts of nature, etc.
The coverage can be also enhanced by selecting additional covers, such as engine protector, accessories cover, medical expenses, zero depreciation cover, etc. This is a very popular option as it offers full-fledged cover and leaves the policy holder stress-free.
THIRD PARTY INSURANCE
Third-party liability covers you against death or bodily injury to any third party/person and damages to third party property arising out of the use of your motor vehicle. More importantly, this policy does not cover any damage or loss to your own vehicle. Third party is the minimum mandatory cover in UAE, and it doesn’t provide coverage to your vehicle if it is damaged or stolen.
What are the popular additional Car Insurance cover options available?
The term ‘agency repair’ provides you an assurance that in the event of any damage to your car, all repairs will be conducted at the official service network of the car’s dealership.
Personal Accident cover for driver and passengers
Personal accident cover is a part of a car insurance policy that compensates you or your family for injuries or death caused by a car accident. If an accident isn't your fault, the at-fault person's insurer will pay out for any personal injury claims.
This is a common feature offered by most insurance providers in the UAE. This feature offers protection against 'own damage' - i.e., damage to your car that you're responsible for - in another GCC country. For example, if you hit a tree in Bahrain, you can claim back the cost of the repairs to your car that are needed from that. However, with this sort of cover, you're not insured for third-party damage, which is a legal requirement in every GCC country.
Emergency Medical Expenses
This additional option covers medical expenses up to a specified limit incurred by the driver or passengers within 24 hours of an accident.
New Car Replacement
New-car replacement insurance, an option with some insurers, offers to ease the financial pain in the event of losing your car if it’s stolen or unrecoverable after an accident. It pays the value of a brand-new car of the same make and model, minus the deductible, if your car is declared a total loss.
Off Road Cover
An 'Off-Road' Insurance Cover is a policy feature that either comes with your Car Insurance or is bought as an add-on cover at an extra cost. It essentially covers loss or damage sustained by an insured private vehicle while it's driven off the road.
Roadside Assistance in Car Insurance
Roadside assistance coverage helps drivers when their vehicle breaks down. The car insurancee company typically partners with an existing network of businesses that provide roadside assistance services, or employs a team to contact and arrange service on their customer’s behalf.
Personal Belongings Cover
Covers loss of or damage to your personal belongings (up to specified limit), while in the insured vehicle.
Replacement of locks
Covers the cost of replacing the locks in case your car keys are stolen.
Covers the cost of repairing or replacing the windscreen if broken or damaged.
What is a No-Claims bonus?
No-claim bonus (NCB) is a discount in premium offered by insurance companies if a vehicle owner has not made a single claim during the term of the motor insurance policy. The no-claim bonus is a reward to the vehicle owner for prudent use of the vehicle.
The amount that its worth varies from insurer to insurer, but a NCB of five years or more, for example, is likely to give you a significant discount on your premium.
If you make a claim on your policy where your insurer pays out, you’ll generally lose some, or all, of your no-claims bonus. But if you’re hit by another car and it’s agreed that you weren’t at fault, your insurer may be able to reclaim the payout from the other car’s insurer and your NCB may not be affected.