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With the UAE RTA law making it mandatory for all vehicle owners to have a vehicle insurance cover, irrespective of owning a brand new car or a used one, it’s mandatory for car owners to have an insurance cover in Dubai.

But with its complicated terms and benefits, it can be confusing to comprehend the general rules of a car insurance policy. Don’t worry! Understanding the significance of car insurance in Dubai,  policyhouse.com has made the complicated process easy for you. Here are the 8 general car insurance rules in Dubai:

Pay the premium on time

The car insurance premium is the fee you pay to an insurance company/agency to keep your car insured for a certain time period. Premium amount is calculated taking into consideration various factors such as the cost of the car, the model and make of the car, it’s year of manufacture, the engine size, the owner’s age, and his/her past driving experience.

With insurance coverage expiring after the end of the particular policy term, every car insurance policy comes with an expiration date. As a policyholder, it’s therefore critical to renew your policy before it’s expiry in order to enjoy the continued coverage.

Insurance companies will not provide coverage for your car, even a day after the policy’s expiry and you will also be required to pay additional fees as a penalty to renew the lapsed insurance policy. Hence, always make sure to renew it before the due date for uninterrupted coverage.  Buying car insurance online can make it a lot easier to track renewals of your policy.

Protect the Insured Car

All reasonable precautions must be taken to keep and protect the insured car from loss or damage and maintain the same in a good working condition. In case of any accident or breakdown of the insured car, the insured (policyholder) may not leave the insured motor vehicle or any part thereof without taking necessary precautions to prevent the aggravation of damages.

If there are any necessary repairs to be made to the insured car, the policyholder should make sure it to be made and should not drive the insured car or else. If the insured car is driven before making the necessary repairs, every increase of damage or every damage to the car arising from the same will not be the responsibility of the insurance company.

The insured should remain the sole owner

The insured (Policyholder) will remain as the sole owner of the insured car throughout its insurance period, and may not lease the vehicle to any third party or sign any contract which may restrict their absolute ownership and possession of the car without the prior written consent of the company.

The policyholder should refrain from law-breaking and anti-fraud activities to keep their car insurance intact.

Notify the Insurer in case of an accident

In case of any accident which may give rise to a claim according to the provisions of your specific car insurance coverage, the policyholder should immediately notify the concerned official authorities, and shall promptly notify the insurer and furnish all information related to the accident without unjustifiable delay.

Registering a claim with your insurance provider and furnishing all the vehicle and accident-related information is part of the claiming process and the same done at the earliest will help you get a smooth claim without any hassles. The policyholder should furnish the insurer provider as soon as possible for every claim, notice, or judicial papers once they receive them.

Cooperate with the company & authorities

As a policyholder, your insurance company should be notified as soon as practically possible once you become aware of any lawsuit, investigation, or detections concerning the accident you were involved in.

In case of theft or any other criminal act which may give rise to a claim according to the specific policy, the policyholder should also notify the police and the insurance company promptly and as soon as practically possible and cooperate with them in this respect.

Deductible charges

A deductible is an amount of money you would have to pay before insurance picks up the tab in the event of an accident, theft, or other types of damage to the car.

The car insurance company may charge the policyholder who has caused the accident with a deductible amount to be deducted from the due amount of compensation due with respect to any accident which is caused by them personally or by the person authorized by them to drive the insured car or cases that are deemed committed by an unknown person, according to the terms and conditions.

The general notion depending on the typical deductible range is that, lower the deductible, higher the annual premium, and vice versa.

Additional deductible charges

In addition to the above mentioned deductible charges, according to the particular terms and conditions of an insurance company or the specific policy you chose,  the insurance provider may charge the policyholder who caused an accident an additional deductible as follows: (*The below figures can strictly vary from insurer to insurer and vehicle to vehicle)

• - Maximum 10% of the amount of compensation if the car is below the age of 25 years.

• - Maximum 10% of the amount of compensation in the case of taxi and public transport vehicles.

• - Maximum 15% of the amount of compensation for sports cars and modified cars

• - Maximum 20% of the amount of compensation for cars modified outside the factory.

• - Maximum 20% of the amount of compensation for rental cars.
  

Exclusions

Things not covered by a general car insurance policy. Car insurance in Dubai will cease to exist under the following circumstances:

• - If the car insurance policy is not in force. Timely renewals are therefore absolutely necessary.

• - Driving the car with an Invalid license.

• - Driving the car under the influence of alcohol or drugs or any other intoxication substance.

• - Overloading the car while driving

• - Providing misleading information (Car registration or driving license) or deliberate accidental loss (Loss arising out of an accident or event that was deliberate)

• - Unethical use of Insured car (Carrying illegal substances or using the car for illegal purposes).

policyhouse.com

Understanding the significance of car insurance rules in Dubai, policyhouse.com strives to find the best car insurance in Dubai for our customers. Since our inception, we prioritize customer needs before anything and constantly endeavors in improving our services each day.

As a streamlined approach to evaluating your ideal car insurance policy,  policyhouse.com has the best tool to compare car insurance quotes of leading insurance companies with a side-to-side comparison. Buyers can write down their specific requirements for their policy online and create a customized policy for themselves.

Utilizing intelligent algorithms and smart modern technologies, we make sure to get the best quote for you. Our thriving relationships with 35+ insurance companies in UAE also guarantee you the best deal available.