How to choose the right Motor insurance in UAE

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The road does not end with buying a new car, you need to have the right motor insurance for a happy journey!

Buying a new car is probably one of the largest, single investments one would make. It is imperative then that one invests in a motor insurance policy that gives you financial protection and peace of mind, in the unfortunate event of an accident.
While purchasing an insurance appropriate for your needs, it is important to be aware of some fundamental aspects applicable to motor vehicle insurance in the UAE:

  • Regulatory requirement

Whether you are purchasing a vehicle for the first time (new or used) or you are renewing the annual registration of your existing vehicle, it is a regulatory requirement to purchase insurance.  It is a Unified Motor Insurance policy which is mandatory by law in the UAE. The minimum insurance as stipulated by law is a Third Party Liability insurance cover.

  • Covers available

The UAE Unified motor policy is available in two product forms:

– Third Party Liability only – This meets the minimum law requirement.

– Loss, Damage and Third Party Liability – commonly known as Comprehensive or full insurance.  Comprehensive cover may be bought at various optional levels  depending on the additional rider covers and limits.

The minimum cover requirement can be provided by the majority of insurance companies within the UAE. Various extensions to the minimum cover can also be availed at an additional premium.

  • Additional rider covers

Some insurers in the UAE provide a range of options and benefits at an additional affordable premium. These may include:

•      Personal Accident Benefit for Driver and Passengers ( Scale as per Insurance Authority Standard Wording)•      Agency Repair
•      Increasing the limit under Third Party Property Damage•      Vehicle replacement during an accident – Car Hire
•      Off-road cover•      Towing following an accident
•      Emergency Medical Expenses following accident•      Fire and Theft cover
•      Storm, flood, riot, strike and civil commotion•      Wind screen damage cover
•      Loss of personal effects•      Replacement of locks
•      Geographical cover extension to within GCC countries

 

How your premium is calculated

Listed below are the main factors that decide your motor annual insurance premium:

•      Cover required (Type and Level)•      Age of the Insured and Driving Experience
•      Vehicle Age•      Body Type
•      Vehicle Value•      Number of Cylinders
•      Vehicle Make and Model•      Claims History
•      Use of the vehicle (Private / Commercial)

 

What documents are required to purchase motor insurance

  • Full data of your vehicle and your personal details
  • No Claim Bonus Certificate (if applicable)
  • Copy of Vehicle Registration in case of renewal
  • Copy of Purchase Invoice in case of new vehicle
  • Copy of Driving License
  • Copy of UAE ID

Tips:

  • Consider your car while choosing Third Party Limits and make sure the limit of liability is proportionate to exposure on the road
  • Purchase the right insurance policy as per your needs and use
  • Know what you are paying for. Do not make a choice purely based on premium
  • Always check the policy schedule to ensure that the following three important conditions are in line with your request /agreement :
  1. Limit of Liability and car value (sum insured)
  2. Repair Condition
  3. Deductible

You should take into consideration all the above when you decide to insure your car, but it’s just as important to adhere to best practices of road safety, traffic rules and regulations. With the right protection and risk cover, you will definitely enjoy your driving experience in the United Arab Emirates.

Tariq Zietoun(Tariq Zietoun is the Chief Officer – Underwriting & Strategic Accounts Management at ADNIC)

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