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With a plethora of insurance companies operating in the market, offering complicated terms and benefits, if you don’t know much about car insurance, it can be pretty confusing to comprehend what makes it necessary to have a car insurance policy.

But, irrespective of owning a brand new car or a used one, it’s mandatory for car owners in Dubai to have an insurance cover. But, how does car insurance work in Dubai?

Don’t worry! Understanding the significance of car insurance in Dubai,  policyhouse.com has made the complicated process easy for you.

Types of car insurance in Dubai

There are two types of car insurance policies offered in Dubai:

Third-party insurance

The third-party cover fulfills your legal liability for bodily injuries, death, or third-party property damages, in case you are involved in an accident. But, it does not cover damages caused to your own vehicle. 

The insurance company is only liable to pay to the third party involved in an accident caused by you. Whereas, if you happen to be in an accident caused by someone else and you have a Third Party Insurance, then you need to determine if the other party’s insurance company will pay for your damages. The benefit of buying a third-party cover is that it attracts a basic insurance premium.

Comprehensive cover

With the comprehensive insurance plan, you get an extension of the third-party insurance plan. It offers protection for your car’s minor to major replacement or repair expenses as well. In case of an accident, it also covers the damages caused to the third-party as well.

Comprehensive coverage also provides protection from non-collision damages such as theft, vandalism, fire, natural disasters, etc. As the plan offers such extensive insurance coverage, the cost of this plan is higher compared to a third-party plan.

In case you are having an old vehicle, you can opt for a third-party cover as the basic insurance cover which would be sufficient for the vehicle. Whereas, comprehensive coverage is the best option for new vehicles and expensive cars as it offers better coverage.

How to choose one 

Though it’s completely up to you to choose between third-party and comprehensive car insurance, the type of car insurance you should opt basically depends on two things:

1. Your actual requirement 

The aspects you wish for your car insurance to cover or your insurance expectations can help you decide which specific insurance policy to choose.

2. Your risk capacity 

If you are someone who prefers to keep the cover to a bare minimum as you assume the probability of something bad happening is low or if you are someone who’s cautious and doesn’t wish to take a chance, then it’s your perspective that decides your policy type.

Add-ons

With buyers these days having different preferences, car insurers offer various add-on covers in order to meet their varied needs.  Beyond your primary requirements, it’s completely optional and although as an advantage to you can customize your plan, it comes at an extra cost apart from the regular premium you pay for your insurance. Most common add-ons in Dubai are:

1. Roadside Assistance

2. Off-road coverage

3. GCC Coverage

4. Agency Repair

5. Personal Belongings coverage

Premium calculation

Working on a “use it or lose it” basis, the premium is the fee you pay to an insurance company/agency to keep your car insured for a certain time period. Premium amount is dependent on various factors such as:

1. The cost of your car

2. The model or make of the car

3. The age of your car

4. The owner’s age

5. Past driving experience

Your premium amount will increase if you are younger than 30 years of age, or have an accident-prone driving record, or your car happens to be over three years old or is an exclusive model. A ‘No claim’ certificate which can prove that your car was not involved in any accident the previous year can get you a discount on your policy renewal premium.

Documents required

Along with the premium fee, you will need to submit some documents to your insurance company/agent. Generally accepted as a proof of your driving experience and identity, the  most important ones are:

1. A copy of your valid Emirates ID or your passport with valid UAE residence visa

2. A copy of your driving license

3. A copy of your car registration

4. No claims certificate (If applicable)

Comparing car insurance

With several insurance companies in Dubai offering a wide range of plans, always make sure you compare car insurance plans from multiple insurance providers to avail the best and cheap car insurance in Dubai.

The Internet has made it easy to compare car insurance online. With various online portals providing information about car insurance plans, and various add ons, you can just scroll through and figure out your specific requirements and find the best car insurance policy for yourself.

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

Buying the policy

Paying a huge amount for the protection of your car, the quality of service that you receive also matters while choosing a car insurance policy. With numerous car insurance companies operating in Dubai, finding the right one for you can be a difficult task. Under this scenario, it makes sense to deal with reliable car insurance companies that have a good reputation in the market.

The most convenient way for buying a car insurance is definitely online. You can buy cheap car insurance in Dubai by comparing various plans with policyhouse.com. Utilizing intelligent algorithms and smart modern technologies, we ensure to get the best car insurance quote for you. And once you’ve picked up your ideal car insurance policy, through our swift and simple processing, we’ll prepare all the essential paperwork.