car insurance
Get Quotes
CAR INSURANCE
Get Comprehensive Car
Insurance
At Lowest Premiums
Why Us
Our Partners
Previous
Next
QUALIFIED ADVISORS
TRUSTWORTHY
YOUR INTEREST AT HEART
DEDICATED CLAIMS SUPPORT
CUSTOMER
SERVICE
BEST DEALS
18 YEARS OF MARKET LEADERSHIP
TRANSPARENT COMMUNICARTION
Car Insurance in the UAE
According to UAE Road and Transport Authority, it is a mandate for all car owners to possess a car insurance cover. If you are found to be driving without auto insurance, you can be fined about AED500 and earn four black points on your driver’s license. The vehicle can also get impounded for several days.
Simply put, getting car insurance is a necessity because it protects you against financial and legal liabilities associated with any accidents from your vehicle. While you will have to pay premiums regularly, the bright side is getting the insurance company to handle the bills in case of unforeseen circumstances with your car.
Best Car Insurance:
When it comes to car insurance in the UAE, one size doesn’t fit all! Every person comes with different insurance needs depending upon the type of car, driver’s age, risk exposures, lifestyles, and financial viability. Therefore, there is no generic best car insurance that will suit everyone. Instead, our goal is to find the right kind of car insurance for your car.
Many car insurance companies provide a plethora of products with additional features. The downside is that they are often loaded with jargon and abbreviations; however, that shouldn’t prompt you to just sign the insurance papers without understanding them first. For unprecedented events, this is the same contract that you will need the most. Read through the terms and conditions to know what your insurance does and doesn’t cover.
In order to choose the best car insurance for your vehicle, take some time to assess your needs and then look for an insurer that meets them.
Be aware of the below pointers to choose the right policy for you.
- What car insurance does my car need?
- What covers should I buy?
- Do the policy charges fit my budget?
- Does my chosen insurer maintain good industry standards?
- What extras is my cover providing than its peers?
How to identify the right insurer for you?
Almost all of these questions boil down to one moot point: finding a reliable and trustworthy insurer. We, FinBuddys, through our years of experience and expert domain knowledge, have done our part of research and have accumulated the below characteristics that an insurer must have.
Competitive Pricing:
This is where a lot of customers do get confused. Competitive pricing doesn't mean the cheapest possible insurance here. You have to compare prices among similar converge to figure which insurer provides affordable quotes. An affordable premium with comprehensive car insurance cover is every driver's need. If a car insurance cover with competitive pricing can deliver that, go for it.
Excellent Industry Ratings:
Instead of buying what everybody is buying, do your bit of research. The insurance industry changes from time to time, and there are always newer and better insurers entering the market who provide innovative and scalable covers as per customer demands.
The more you research, the better protection you can get from your car insurance.
Stellar Online Reviews:
Apart from the reviews posted on the company website, you can also read what customers truly feel about the insurer on online platforms like Facebook, Trust Pilot, or Google.
If the customers vouch for the company, then it is a sure sign that you are speaking with the right people to find the best car insurance.
Financial Conditions:
When you buy car insurance, it acts as a legal contract between you and the insurer. The insurer agrees to share most of the liabilities at the cost of a regular premium amount.
This means we are assuming the insurance company itself needs to be stable enough to deal with all the liabilities that may come it's way at any possible moment. You can figure that by looking at their net worth, net income in the last year, and all other financial data available online. Or, you can gauge their financial health by seeing how they process a claim, how they settle it, or how their history of claim settlement has been.
Excellent Service:
The best way to know about the service is, of course, word of mouth. Ask your friends and families about their experience with their car insurers.
The other way to know more about the service quality of an insurer before purchasing is, well, give them a call or walk into their office, ask questions about your vehicle insurance and see if they can answer them adequately.
A car insurer may boast of the cheapest possible cover, and it may turn out to be of no-worth in moments of need. Make an informed decision; a good insurer will never do a trade-off between service provided and affordability.
Types of Car Insurance with Benefits
While you are driving on the road, you are not only responsible for your safety but also other’s safety as well. There are many covers available to safeguard both parties’ interests in case of any unforeseen circumstances.
While selecting the right insurer and right insurance for your vehicle can be dry, making the wrong selection with limited information can worsen the situation. Whether you are buying a new car or want to insure your existing one, make sure to have a brief understanding of the policies in place and the coverages associated with it.
There are two broad categories of insurance available for car insurance in UAE, namely:
While selecting the right insurer and right insurance for your vehicle can be dry, making the wrong selection with limited information can worsen the situation. Whether you are buying a new car or want to insure your existing one, make sure to have a brief understanding of the policies in place and the coverages associated with it.
There are two broad categories of insurance available for car insurance in UAE, namely:
1.Third Party Liability Insurance Policy.
2.Comprehensive Car Insurance Policy.
Let’s understand a little better about the types of car insurance available in the UAE.
Third-Party Liability Insurance Policy:
Under the UAE legislation, it is mandated to choose this optimum cover that protects against the damages(bodily damages, vehicle damage, death) caused by your vehicle to a third party or its property/vehicle.
But the policy doesn’t cover your car or you unless the damage is caused by someone else, and you can claim from their insurance provider.
If you want to protect your car from unforeseen events, better coverage is needed provided by the Comprehensive Car Insurance Policy.
Third-Party Liability Insurance Policy(Theft & Fire Coverage Included):
There is an optional add-on covering theft and fire mishaps to the mandatory third-party liability insurance policy. When this is combined with the standard third-party liability insurance policy, the premium cost also increases accordingly.
Comprehensive Car Insurance Policy:
Main Policy covers
As the name suggests, it provides complete protection for you and the third party when you are at fault and mishaps when there are no third parties involved, e.g., natural disasters(not covered for all vehicles) man-made disasters, vandalism, etc. The premium for comprehensive car insurance is more than the third-party liability policy.
There are many riders which can be added to this base policy at extra premium costs.
Additional Benefits which you can add are:
- Personal Accident Benefit Cover: It provides compensation for death and disability (permanent or partial, e.g., losing hearing or vision abilities, losing a limb) caused by accident. Even if some passengers may not have health insurance, this cover will still protect them.
These policies come with a cap on the amount of coverage per person, i.e., in case of an accident, if there are multiple co-passengers, then the add-on will cover only a specific amount for each person.
In specific circumstances, it also provides for loss of pay and funeral expenses in case of death; however, it doesn’t provide coverage in case the damage is caused by:
- An attempt to harm oneself intentionally
- Driving under the influence of drugs or liquor
- Damages caused while there are more passengers than the allowed seating capacity
- Off-road: This provides for loss/damage on unmarked/off-roads like mountains or deserts. If you drive your 4WD for running daily errands, then a standard policy will be enough for the vehicle.
However, if you take your 4WD off-road, you will need this coverage. This cover usually includes: - On and off-road drives
- Off-road recovery expenses
- Off-road: This provides for loss/damage on unmarked/off-roads like mountains or deserts. If you drive your 4WD for running daily errands, then a standard policy will be enough for the vehicle.
As this cover differs across insurance providers, know exactly how the provider will be covering your car before buying it.
- Car Hire Cover: When your car is at the garage for accidental repairs, you will need another vehicle to continue your day-to-day activities. For such situations, the Car hire add-on comes in handy. This add on is applicable for private cars only. Do remember to check the duration of usage of the car hired, as it differs across insurers.
- GCC (Gulf Cooperation Council) Cover:As the climate and road conditions are harsh in the Middle East, cars are open to greater risk. Therefore, to protect your vehicle from intense climatic situations, you can either
a) Opt for GCC modification in your car, leading to a lesser premium cost
b) Buy the cover at a higher price if your vehicle is non GCC compliant
The GCC cover is a third party liability cover which includes territories of Kuwait, Bahrain, Saudi Arabia, and Oman. If you own a third-party liability policy, you need to buy the cover separately for each country while crossing the border (except for Oman).
Availing the benefits of this cover is subjected to conditions, which are:
- The maximum duration of a particular trip doesn’t exceed 60 days
- Total max. number of days doesn’t exceed 90 days(in case of multiple trips) in 12 months
- Coverage for loss of personal items in the insured vehicle:
This rider covers expenses if there is any damage/loss of any personal belongings carried in the insured vehicle. (Policy terms & conditions will apply) a)Opt for GCC modification in your car, leading to a lesser premium cost b)buy the cover at a higher price if your vehicle is non GCC compliant
- Agency Repairs: If it is included in your car insurance policy, you can repair your vehicle at one of the manufacturer’s authorized dealers. If it is not included in the policy, then the insurer selects one of its approved garages for the repair.
It is a win-win for all, i.e., the insurer, insured, and the workshop owners. Insurer manages to pay less by partnering with fixed dealers, the insured’s vehicle is repaired in a trusted and authorized workshop, and the garage happens to receive continuous business.
- Windscreen Cover: This provides coverage for accidental damage to your insured car’s windshield, though mostly windscreen cover is included in comprehensive car insurance cover it is important to check your cover and its benefits thoroughly.
There are many exclusions that this policy doesn’t cover, such as wear and tear, depreciation, damage caused under the influence of drugs, to name a few.
A crucial thing to keep in mind is that the terms of Comprehensive Car Insurance differ from insurer to insurer depending upon policy regulations in place.
Premium Comprehensive Policy:
Premium Comprehensive Car Insurance policy is mainly available to clients with luxury or high-end vehicles.
Temporary Insurance:
While all the previously discussed insurance products are long-term, you can also purchase short-term car insurance policies that cover a specific period. The reason for its growing popularity is because of the less premium that comes with it.
While many people like to opt for policies that cover them all year long, temporary insurances are for people who need protection for a particular period or from specific situations. For example, if you use regular routes on the map for daily commuting to the office and one of the weekends, you choose to go to the outskirts. In such situations, you may not need off-road cover all year long, but you may buy it just for that weekend.
But if you are a frequent traveler who travels throughout the year and may need a specific cover all the time, then buying temporary insurance, again and again, is of no value.
FinBuddys doesn’t provide this cover currently; however, clients can only avail of this cover when the vehicle holds an export plate.
While many people like to opt for policies that cover them all year long, temporary insurances are for people who need protection for a particular period or from specific situations. For example, if you use regular routes on the map for daily commuting to the office and one of the weekends, you choose to go to the outskirts. In such situations, you may not need off-road cover all year long, but you may buy it just for that weekend.
But if you are a frequent traveler who travels throughout the year and may need a specific cover all the time, then buying temporary insurance, again and again, is of no value.
FinBuddys doesn’t provide this cover currently; however, clients can only avail of this cover when the vehicle holds an export plate.
Inclusions and Exclusions:
No matter which insurer you opt for, the terms and conditions are explained in the four below documents.
1. Insurance Policy Document
2. Declarations
3. The Endorsement Document
4. Exclusions
Inclusions and exclusions can be easily explained in a car insurance policy as conditions/situations that will not be covered under a cover respectively.
Inclusion and Exclusion in a Third Party Insurance Cover:
- The insurance company is liable to pay for the damage caused to the third party by the insured.
- Any damage caused to the insured’s own car won’t be covered under this policy.
Inclusions in a Comprehensive Car Insurance Policy:
- Natural calamities, e.g., earthquakes, hailstorms, volcanic eruptions(It is not applicable for all vehicle. Not all insurance providers provides this cover)
- Man-Made hazards, e.g., fire, theft, hitting a tree, protests, house break-ins
- Coverage to the third party or its property in case of any damage caused by the insured
- Coverage to your own car damage
- Legal liabilities/settlements in case of any accidents or mishaps
- While some insurers provide personal accident cover in the base plan, some insurers provide this as a rider with an additional premium.
Exclusions in a Comprehensive Car Insurance Policy:
- Damage due to depreciation of the car or its parts
- Damage/loss caused to the vehicle while driving with an invalid/expired driving license
- Damage/loss caused to the vehicle outside insurer’s coverage area
- Damage/loss caused to the car while driving under the influence of drug/alcohol
- Damage/loss caused while using the car for any purpose other than the ones mentioned in the policy
- Non-compliance with the terms and conditions mentioned in the policy
- If the insured violated the car manufacturer’s instructions for usage and thereby causes any damage to the vehicle
- Intentional staged damage for financial gain
- If your insurance policy has lapsed and you haven’t renewed it, and in the meanwhile, there is any damage caused to the car, then that damage won’t be covered by the insurer.
Fines & Penalties
Think of car insurance as an annual legal contract that needs to be renewed every year without fail. The insurer always updates you about the insurance renewal date well in advance through app notifications/emails/phone calls. Do remember to respond in time and keep no gap between expiry and renewal date.
- If the vehicle is pledged as a loan to an individual by the insured and the damage or loss is caused by the other person, then the coverage will not be provided for the same.
- Consequential Damage: If the damage arises from the action of an individual rather than any uncertain event, then such situations will come under consequential damage for which no cover will be provided.
Certain exclusions can be added to the base plan with additional premium amounts.
These insurance exclusions are often heavily worded with jargon and are difficult to understand. We recommend you to ask as many questions to your FinBuddy to have a good understanding of the car contract you are signing for.
No Claim Bonus:
Your auto insurance in the UAE not only protects you from unnecessary risks but also helps save some money!
There is a minimum premium for all the vehicles. The premium amount doesn’t go below that threshold premium; having said that, NCB or No Claim Bonus is one of the easiest methods to save money on your car insurance in Dubai. It also promotes safe driving among people and reduces mishaps on the road.
No Claim Bonus is a reward provided by the insurer for not raising claims during a policy year. It comes in the form of a discount percentage on the premium amount while renewing the car insurance policy. The more policy period you can go on without raising any claims, the more discount you will be receiving on your premium. Think of it as an incentive that the insurer gives you for not asking for claim settlement for smaller issues so that you can save big while paying your next premium.
For example, if your insurance premium costs AED 5000 and you go by a year without filing any claims and earn about 10% NCB, then you will be required to pay only AED 4500.
In UAE, according to the Insurance Authority Board of Directors’ decision No. 41, a no claim period of about one to three years may receive about a 10-20% reduction in the premium amount upon renewal. The maximum amount of NCB that you can earn goes up to 30-50%, depending upon the driver’s profile.
These days, many insurers provide you with an NCB calculator that you can use to know how much No Claim Bonus you will be receiving. The NCB period usually starts from the second year of your policy purchase.
Key Points about NCB:
- No Claim Bonus is issued only at the time of renewal.
- The interesting part is that NCB is associated with the driver instead of the vehicle registered. This means No Claim Bonus is transferable even if your insurance company or vehicle is switched or changed
- There is a common misconception that NCB becomes nullified if you ever make a claim after 3-4 years. The truth is that the earned discount amount due to NCB doesn’t become null if you happen to raise a claim. It may get reduced to a certain extent depending upon the insurer. The number of claims that can be raised without affecting the bonus varies from insurer to insurer.
- As mandated by the UAE Insurance Authorities regulation of 2018, insurers provide a ‘No Claim’ Certificate free of cost.
- If the same driver owns another car, then the NCB can also be used on that car.
How Price is Calculated in UAE:
At some point in our lives, almost all of us look for reliable car insurance. Whether you are buying a car for the first time or many years, the search for the cost-efficient best-fit car insurance policy is never-ending.
There are many factors at play associated with the price of car insurance and the coverage it can provide.
- Price, Model, and Age of your Car: If your car is a high-end one, it is evident that the servicing, repair, or replacement of the same will be expensive, which translates to high premiums. Similarly, sports cars are exposed to greater risk, so they will also incur high premium amounts.
The insurance company also happens to look at the extra features in your car, such as GPS, and charge more premium than they do for the base model.
If your vehicle model has a good safety standard, then the premium will cost less.
Similarly, a newly bought car is expected to perform better than an old one. Likewise, while the former incurs less premium and the latter comes with more premium.
2. Deductible Amount Chosen:
- The excess or deductible is the customer contribution made at the time of non-recoverable claim(s) due to an accident. Non-recoverable motor claims usually occur when an accident is caused by the insurance policy holder.
A low deductible and high premium could be the right choice for you; if the risk exposure of your vehicle is high and you may use the insurance cover often or you don’t have enough funds to cover any damage on your own in case of any mishap.
3. The base location of the registered Car and where it will be driven:
Not every area poses the same level of risk to the vehicle. Therefore, the insurance company needs to know if the area in which you drive comes under the default scheme or not.
If the car is being driven regularly to any other GCC country, that will mean extra coverage to protect it from any potential damage.
Premium charges are higher in big/metro cities than the small ones as the traffic density is higher.
4. Insured’s Occupation:
Some insured’s go through more stress than others because of their job profiles. While a scientist or artist is less prone to a high stress-induced lifestyle, a salesman is assumed to have a busy lifestyle and spend long hours at the office or driving. So, the latter category is priced at a higher premium than those with less hectic work schedules.
5. Age of the Insured:
Apart from the insured’s occupation, the COI(cost of insurance) also depends upon the driver’s age. The minimum age to obtain the car insurance policy is 18 years old. If the driver’s age is about 23-24, then the cost comes as an extra addition to your basic premium. For the age group of 25-30-year-olds, a certain amount of surcharge is added to the premium cost. For people between 30-60, discount is provided on the premium as they are considered to be more risk-averse while driving.
6. Driving history of the Insured:
While insuring your vehicle, the insurer will also like to look at whether you have been charged with DUI, traffic tickets, accidents in the past. In case of any such past situations, the insurer assumes that covering you will make the company more vulnerable to high expenses. Likewise, a low mileage driver is charged much less than a high mileage one.
Eligibility and Documents for Car Insurance:
If you are 18 years or above, you can apply for car insurance in the UAE.
While it is mandatory to obtain car insurance to drive in the UAE, there can be situations where you are denied for the same by insurance companies.
Those are:
While it is mandatory to obtain car insurance to drive in the UAE, there can be situations where you are denied for the same by insurance companies.
Those are:
- If you have too many violations
- If you have too many at-fault accidents
- If you are too young or old
- If you don’t live in the insurer’s coverage location
There are a few documents necessary before you apply for car insurance.
1. Driving License: It is not necessary to hold a driving license to get car insurance.
The policies are also issued to those who don’t have a driving license.
The insured has to provide a self-declaration that the insured’s husband/wife/driver who holds a valid UAE driving license to drive that particular category vehicle will drive the car.
If you already have a driving license from another country, you can also use that for faster processing of your driver’s license application in the UAE.
2. Proof of Vehicle Registration: A copy of the car registration/VCC Paper/Possession certificate is also essential for a car insurance application.
3. Current Declaration Page: If you already have a car insurance policy and are looking for a new quote.
4. Passport & Residence Visa: Both of these act as proof of residence in UAE and are one of the mandatory documents for a car insurance application.
5. Policy Cancellation Proof: If you have canceled your car insurance with an insurer, and want to opt for another insurance company, then providing the previous policy copy will help the company understand your needs better and provide a befitting customized policy.
How to file Claim Insurance in UAE:
To err is human; to panic is of no use! We, FinBuddys, advise you to keep the following pointers in mind if you are involved in a car accident.
1. Inform the Police ASAP: The fast reporting ensures the authorities are in the loop and all the evidence is fresh and untampered.
2. Don’t try to run away in case of an at-fault accident.
3. Reach out to your insurance provider: To file a claim, it is important to inform your insurer after you inform the Police. Depending upon the policy and its cover, your FinBuddy will be able to guide you through further steps.
4. Capture videos/pictures of the damage caused: This will be helpful while filing a police report through a mobile application. It may also be required for the claim processing.
5. Save the receipt: Saving all the receipts of your expenses from the time of the accident will help you in making the right claims
To submit the claim, keep the following information ready.
- Proof of Driving License
- Proof of Car Registration(Mulkiya)
- Policy Number of the insurance availed
- Proof of Filed Police Report
But do you know when you shouldn’t file for a claim? Well, for damages that cost you less than your agreed-upon deductible, the insurer will not be paying for those situations. If you still end up filing claims in those circumstances, you will lose your No Claim Bonus(NCB) and will have to pay an extra amount of premium for renewal.
Buying Car Insurance Online:
We get it; it is a lot of information to process while choosing the right car insurance for your vehicle!
If you choose to buy car insurance in the traditional method, it requires a lot of paperwork and a considerably lengthy process, starting with meeting the seller/agent to finalizing the policy to waiting for the document; processing can take a couple of weeks.
If you choose to buy car insurance in the traditional method, it requires a lot of paperwork and a considerably lengthy process, starting with meeting the seller/agent to finalizing the policy to waiting for the document; processing can take a couple of weeks.
However, thanks to FinBuddys.com, you can do all this easily at your comfort. All the insurance companies have a FAQ section on their website to find answers to your questions but the easiest and most convenient way is to reach out to your FinBuddy and ask all your questions.
You can also find unbiased reviews about different policies by customers that will help you make an informed choice.
After you have performed sufficient background research, you can compare the quotes and then proceed to the next step of choosing the policy along with the necessary riders; your FinBuddy will be there at every step to help you choose the best auto insurance cover. The car insurance premium can be paid online or via traditional methods like Credit Cards, cheques, or cash.
The claim settlement process online can also take a couple of minutes of your busy schedule and is a hurdle-free seamless process.
At FinBuddys.com, we will always help you choose the best car insurance policy.
FAQ’S
It is a legal mandate to be able to drive on the road. Apart from that, an insurance cover protects you from any unforeseen damages/loss caused to your vehicle.
Generally, there are two types of insurance offered by insurers.
1.Third Party Liability Insurance: It offers protection for damages caused by you to the third party. This is the minimum coverage each driver must opt for.
2.Comprehensive Car Insurance Policy: This policy covers your own and the other party’s vehicle whether you are at fault or not.
Your car insurance policies are not transferable.The buyer has to buy a new policy & seller’s policy can be cancelled subject to the condition that no claim reported & the policy period should not have exceeded 10 months.
Think of a situation where you have selected the right insurance product, submitted the documents, paid the cost of insurance and are waiting for the documents to be processed so that you can obtain a final Certification of Insurance.
For the gap between the processing of the details to receiving the certificate, the insurer provides you with a temporary certificate. It is called a cover note.
In most cases, a cover note provides the same coverage as an insurance certificate with some restrictions.
For the gap between the processing of the details to receiving the certificate, the insurer provides you with a temporary certificate. It is called a cover note.
In most cases, a cover note provides the same coverage as an insurance certificate with some restrictions.
Zero depreciation plan is an add-on cover to your base plan and helps you save money by making the insurer pay for the damage without taking the depreciation value into account. Even though it may come at an extra cost, it will surely come handy. These add-ons are mostly available for cars under three years old.
There are many discounts available to lower your premium cost.
And many more.
Make sure to read your policy paper to have a clearer picture.
- If you have two or three vehicles, you can get discounts on bulk shopping for all of them by buying from the same insurer.
- Making less claim is also a clever way to earn more discounted premium cost with every policy year.
And many more.
Make sure to read your policy paper to have a clearer picture.
You can update your personal details with Al Sayegh by submitting a letter along with the proof of the updated detail.
An endorsement is any alteration in your insurance policy(add, delete, update any part of the document) without having to renew the policy during the policy active period. For example, updating or rectifying your engine number will be called an endorsement.
No. Both the name on vehicle registration and vehicle insurance have to be the same. Any deviation from this will result in both legal and financial penalties apart from rejection of claim.
If you happen to lose your policy documents, then the insurer can provide you with a duplicate copy. You can contact the broker/insurance provider to send a soft copy as well. In order to obtain that, some insurance companies may ask you to file a police complaint first. Others can ask you to sign an indemnity bond in case someone else manages to find the document and tries to misuse it.
To file a claim, generally the insurance companies ask for:
- Proof of Vehicle registration
- Certificate of Insurance
- Copy of driving license
- Proof of filed police complaint
- Bills and receipts in case of reimbursements
In a traditional renewal method, you may have to travel to the insurer and furnish many documents starting from vehicle registration proof to identification proof.
However, the same can be performed online within a few clicks from the comfort of your home.
Insured Declared Value or IDV is as its name suggests, is the approximate market value of the car that the insured would be receiving in case there is a loss/total damage beyond repair to the car.
However, keeping the depreciation in mind, the IDV falls every year. The premium amount you pay every year is directly proportional to the IDV. Every year, the car gets a little older, and lowers the insurers’ liability to pay the original market value in case of any loss/total damage.