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The Whats, The Whys and The Hows of Car Insurance

Driving may be therapeutic but it is not always one hundred percent safe. Going out on the road in your precious car puts you, the passengers and other drivers at the risk of accidents, sometimes totally unavoidable. This is where car insurance steps in to ensure your peace regarding the safety of your vehicle. Car insurance in the UAE is a type of general insurance that works to protect the vehicle, passengers and you the driver, from damages and loss incurred in an accident. You pay a yearly premium to the insurance company for car insurance in Dubai. In return, it takes on the responsibility and risk of handling the repair expenses in the event of an accident/collision/theft/total loss of the car, partially or fully.

Type of Car Insurance in UAE

Car insurance Dubai can be of two main types – Comprehensive and Third-party liability car insurance. These two types are segregated on the basis of the type of coverage they offer and the scope of the plan. It is mandatory to have at least a basic level car insurance plan for your vehicle at all times. Either of the two types of available car insurances in Dubai can fulfil that requirement for you. Let’s examine the two kinds of car insurance in the UAE:

1. Third-Party Liability Car Insurance:

A third-party liability car insurance plan is for all third-party claims in case of accidents where you are at fault. It is the most basic level of vehicle insurance you will find anywhere in the world. Your vehicle is not protected or covered against any damages caused in an accident by a third-party liability car insurance plan. All vehicles in the UAE are required to at least have a valid third-party liability coverage at all times. 

2. Comprehensive Car Insurance:

A comprehensive car insurance plan is designed to protect you from third-party liability claims as well as damages incurred by your vehicle and injuries sustained by the driver. Depending on the coverage scope of the plan, comprehensive car insurance can offer cover against damages caused by accidents, fire, natural disasters, man-made disasters, theft and collisions. Comprehensive car insurance in the UAE can get you any level of coverage that you are looking for with options to customise the benefits as well.

3. Temporary Car Insurance:

Temporary or short-term car insurance plans serve as a brief solution for your driving and car insurance needs. The inclusions of this type of car insurance in Dubai are the same as the third-party car insurance or the comprehensive car insurance plans. The coverage tenure for temporary car insurance can be anywhere between 1 one day to a few months. It is the best car insurance in the UAE to go with if you have to drive someone else’s vehicle for a while.

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Benefits of Car Insurance

Apart from fulfilling the mandatory requirements set by the UAE government, having a good and cheap car insurance plan can turn out to be a beneficial choice in many ways listed below:

1. Fulfils Legal Requirements

The first benefit of getting a vehicle insurance plan is that you will be saved from any legal consequences related to the traffic rules. If you do not have a valid car insurance in the UAE, you can face a fine of up to AED 500 along with 4 black points on your license. In addition to that, the vehicle can be confiscated as well. So, having a proper, valid car insurance can save you from this ordeal. 

2. Shield Against Third-Party Lawsuits

The biggest financial setback you can get after an accident is third-party liability claims. If you have caused the accident and do not have an insurance plan to cover the damages, the complete responsibility will fall upon you. You will not only have to carry the repairs for your vehicle but may also have to pay up third-party claims for vehicular damages and injuries. A good car insurance in the UAE can save you from this problem at the least. 

3. Better Financial Stability

Having a car insurance in Abu Dhabi to rely upon grants you better stability when it comes to managing finances. If you are at fault in an accident, your car insurance online or offline will cover the damages incurred by your vehicle as well as the third-party liabilities. Whereas, if the other driver is at fault, the damages will be covered by the insurance provider of the other driver. In addition to that, your insurance plan may also offer a helping hand if the other driver is underinsured or uninsured. Hence, saving you from most possible scenarios. 

4. Cover Against Loss or Theft of Vehicle

Another great benefit of having a car insurance plan is that you will be covered against theft as well as complete loss of your vehicle. This means if your car happens to get stolen or meets total loss after an accident, the insurance company will reimburse you for the current market value of the car.

insurer your car

Documents Required for Buy & Renew Car Insurance in UAE Online & Offline

Given below is the complete set of documents you will need to buy or renew your motor insurance in the UAE at any given time. Online purchases may only require you to submit the details with or without scanned versions of the documents. The offline purchase will require you to bring the originals as well as a few copies, as mentioned below:

  • Registration details of your car including the registration number. Originals are required when making an offline purchase
  • Engine number, chassis number and other details related to the car
  • Personal documents and details of the driver for example, driving licenses, address proof, phone number, etc.
  • A copy of your passport 
  • A copy of your resident visa 
  • A copy and original Emirates ID
  • Number of your previous car insurance policy, if you had any

Factors Affecting Car Insurance Prices in Dubai

Several factors can affect the price of your car insurance plan. Some of these are related to your car while others are completely dependent on the driver. Given below are the top factors that can influence the price of your car insurance plan:

1. Age and Condition of the Car

The older your car is, the more expensive it would get to insure it. Older cars are more susceptible to breaking down and facing other issues. This increases the risk that insurance companies take on when offering you a car insurance plan. This also means that newer cars in top conditions results in cheap car insurance in Dubai. If your car is old but you have kept it in good running condition, you can easily score some discount on the insurance price. The same goes for newer cars in bad condition. You may have to pay higher insurance prices if the age of your car is significantly less but the condition is not good.

2. Age of the Driver

Younger drivers cause more accidents statistically. This leads to higher car insurance prices when younger drivers are included in the picture. Significantly older drivers also represent the same trend of increased accidents and can inspire higher car insurance prices. The simple calculation here is that more experienced drivers who are statistically less inclined to cause accidents get comparatively lesser prices in their insurance plan. 

3. Driving Record and Habits of the Driver 

A good driving record in the UAE will earn you discounts on your car insurance price while a bad one can jack it up pretty quickly. Your driving records are accessible by your car insurance provider. A good driving record will show that you are a low-risk driver. This makes insurance companies lower their plan price or offer a discount. The opposite happens when you are a high-risk driver. The insurance companies have to increase the price of the premium to manage the higher level of risk that car insurance companies take on. So, maintaining a good driving record becomes one of the ways to find the best car insurance in the UAE.

4. Current Market Price of the Car

Newer cars with higher market value or price attract equally high insurance prices. The reason here is that when an insurance company insures an expensive vehicle and pays for the repairs, it costs them equally higher. The lower market price of the car would mean significantly cheaper car insurance because the insured declared value of the plan will go down simultaneously. 

5. Claim History of the Car

If you are the second owner of your car, you may have to check the claim history of the car when you buy it. If the previous owner of the car has made a lot of claims in the past, insurance companies may sell offer the new insurance plan at an increased price. The more claims you make against a policy, the higher risk your vehicle is considered for the insurance company. This is why the price of the insurance plans increases several folds when the claim history is laden with several small and big claims. 

6. Road Accident History of the Car 

Yet again, a car that has been involved in a lot of road accidents is susceptible to get higher car insurance premiums. The reason remains the same – it is branded as a high-risk vehicle to insure for any insurance company out there. When a vehicle or a driver has a bad accident or traffic violation record, they become a liability to the insurance company. Hence, the insurance premium increases when the owner sets out to buy or renew the plan every year. 

7. Type and Coverage of the Insurance Plan 

Unrelated to the car or the driver-owner, the price of your car insurance premium will also be influenced by the kind of services and benefits you opt for. As a thumb rule, a more comprehensive car insurance plan would be more expensive than its basic counterpart. On top of that, if you go ahead and include a few add-ons or riders on it, the premium further increases. 

8. Deductible

When you choose to take higher amounts of deductibles with your car insurance plan, the premium is lowered significantly and vice versa. The deductible is the amount that the policyholder pays out-of-pocket whenever a claim against the car insurance plan is submitted. The insurance company covers whatever cost remains after the payment of deductibles. This lowers the risk for insurance companies and hence the premium is lowered as a result. 

9. Available Promotions and Discounts

Just like any other type of business out there, car insurance companies keep rolling out promotions and special discounts. Some of these can be anniversary deals, festival bonuses, good driving discounts or simply online purchasing discounts. Depending on what you can score, your premium can go or higher. The way to find best car insurance in Dubai is to scan such discounts and compare car insurance quotes properly before buying

Best Car Insurance Companies in the UAE 2021

Following is a list of the best car insurance companies in Dubai 2021 and the rest of the UAE and a brief on the types of insurance covers that they offer:

Car Insurance Companies Types of Car Insurance Plans Offered Plan Details
ADNIC Platinum Cover Gold Cover Standard Cover
AXA Car Insurance Comprehensive Car Insurance cover, Third-Party Liability Cover
RSA Car Insurance Motor Executive (Comprehensive), Motor Smart (Comprehensive), Motor Value (Third-Party)
Oman Car Insurance Comprehensive Cover Third-Party Insurance InsureMyTesla High Net Worth Covers (premium covers for luxury cars/vehicles)
Noor Takaful Insurance Comprehensive Car Insurance, Third-Party Liability Car Insurance
Orient Car Insurance Comprehensive Plans, Third-Party Liability Plans
Salama Car Insurance Comprehensive Car Insurance Plans
Tokio Marine Car Insurance Comprehensive Car Insurance Plans
New India Car Insurance Third-Party Plans, Comprehensive Plans
RAK Car Insurance Comprehensive and Third-Party liability
see more

How to Find the Best Car Insurance in UAE & Get Car Insurance Quotes?

Here is a list of tips that will help you in choosing the best car insurance in the UAE that provides good coverage at affordable rates

1. Begin with Understanding Your Insurance Needs & Expectations

When you’re clear on what you’re looking for, it becomes easier for you to analyze whether a plan fulfills your car insurance expectations or not.

2. Go for a Car Insurance Provider With Good Reputation

Keep a check on the background of the chosen insurance provider. Anyone with a good reputation is likely more professional and known for timely, hassle-free claim settlements.

3. Always Compare Vehicle Insurance Plans and Prices 

One plan doesn’t fit all when it comes to buying car insurance in Dubai. Instead of opting for the first plan that you come across, it’s wise to compare car insurance online in the UAE to get a fair idea of what are your best available options. By comparing car insurance online Dubai and the rest of the UAE, a quick and informed insurance decision can be made.

4. Evaluate the Car Insurance Coverage 

It is important to analyze the coverage offered along with the car insurance in Sharjah and the rest of the UAE by a provider and make sure it is at your expectations. Refrain from buying inadequate insurance coverage that might lead to regrets in the future.

5. Claim Settlement Ratio & Add on Covers

It’s important to settle with a car insurance company that has a high claim settlement ratio. This in a way guarantees earnestness in the services that are being offered by the insurance provider. Add-on covers on the other hand ensure wider coverage to the vehicle and the driver to ensure maximum safety. 

Car Insurance Calculator UAE

To consider and compare car insurance quotes Dubai online, you are advised to use the car insurance calculator in the UAE provided by online car insurance companies in the rest of the UAE. You can visit their webpage and check the premium against coverage to see if the plan suits your needs while fitting in your pocket. This process may become tiring and tedious since you will be required to visit each car insurance company in Dubai, Sharjah, Abu Dhabi, and the rest of the UAE provider websites to check the premium and cover. To cut-short the process and save your time and energy, you can compare the price of car insurance in Abu Dhabi, the rest of the UAE on policybazaar.ae to find the best car insurance in Dubai that fits your needs.

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How to Buy Car Insurance Policies Online & Offline in UAE?

With so many online car insurance UAE platforms, it has now become easier than ever to compare car insurance policies and buy one that suits your needs. There are two quick and simple ways to buy an insurance policy in UAE which are explained in detail as follows:

1. Buy Car Insurance Offline

The traditional method of buying an insurance policy is via car insurance brokers. You simply choose the insurance company that you would like to go with and contact a car insurance broker to initiate the process. The car insurance broker will inform you about the available plans with the company and the required documents that you need to submit for the process. Another way to buy vehicle insurance in Dubai and the UAE is by visiting a branch office of the company itself.

2. Buy Car Insurance Online

Buying car vehicle online in Dubai and the rest of the UAE is the most convenient and transparent method. Since the world is becoming digital at an incredible speed, almost all top insurance companies have website and mobile application portals for their customers. You can simply visit the site, compare car insurance UAE, select and buy from the purchasing portal. Getting car insurance online in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE quote in the UAE is also a matter of seconds which makes the whole process extremely fast and easy.

Another way is to buy car insurance in the UAE online is to take assistance from insurance aggregators like PolicyBazaar UAE. It is easier to compare car insurance companies online in Dubai and different plans that they offer when you have one common portal for them all as well. Although, make sure that you trust only the most authentic and credible aggregators to avoid frauds and losses.

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What Does Car Insurance Policies Cover in Dubai?

At the time of issuing car insurance in Dubai, and the UAE, there are some common services that are provided by auto insurance companies in the UAE. Let’s take a look at the inclusions here:

  1. Towing assistance if the vehicle breaks down or is met with an accident.
  2. Extraction and removal of the vehicle through the crane.
  3. Flat or leaking tire assistance without labor charges.
  4. Assistance to jump-start the engine in case of a breakdown.
  5. Unlocking ignition key 

Additional Covers Provided With Auto Insurance in Dubai, UAE

There are a few riders that can be bought along the basic insurance plan to enhance the scope of coverage. Here are a few riders that might be worthy add-ons to your existing plan.

  1. Personal Accident Cover - The driver and passengers can avail of the benefit in case any of them dies or sustains injury due to an accident.
  2. Off-road Coverage - Ensures coverage for off-road mishaps
  3. Windscreen Damage Cover
  4. Agency Repairs
  5. Car Hire Cover or Car Cash Benefit - With this one, the insurance provider compensates for hiring a spare vehicle. A few car insurance companies in the UAE offer courtesy cash while the insured vehicle is getting repaired.
  6. 24 Hours Roadside Assistance
  7. Coverage to Personal Belongings or Emergency Medical Expenses
  8. Expanded Third-Party Cover
  9. Free Pick-Up and Drop-Off to and from Airports
  10. Natural Calamity Cover
  11. Grace Period for Insurance Renewal of car 
  12. GCC Cover/Oman Cover for people who often drive to neighboring countries.

What’s Not Covered in a Car Insurance Policy?

Car Insurance in Dubai, Sharjah, Abu Dhabi, and the UAE will not cover for losses or stand nullified if you are:

  • Driving with an Invalid License or Under the Influence of Intoxicants.
  • Overloading.
  • Providing Misleading Information or Intentional Damage
  • Unethical Use of the Insured Vehicle
  • Any Claims Filed After 3 Years of the accident.

What is No Claim Bonus in Car Insurance?

No Claim Bonus is a discount offered to a policyholder for not raising a claim on the car insurance policy during an active term. It can be availed while renewing the Dubai vehicle insurance policy next year. Some of the benefits of NCB are:

  • No claim discount benefit is transferable at the time of insurance renewal of car or porting
  • You need - ‘No Claim Certificate’ from the insurance provider to transfer the accrued NCB benefit
  • No claim discount is one of the most reliable ways of reducing car insurance premiums in the case of comprehensive car insurance
  • No claim discount of up to 20% can be further utilized as a discount in premiums for the subsequent year
  • No claim discount may vary for different car insurance companies Dubai and the rest of the UAE

How to Compare & Find Cheap Car Insurance in the UAE?

With so many options available to purchase car insurance online, it has become easier to browse through a list of the best car insurances in Dubai, and the rest of the UAE and opt for one that suits your needs. To bag yourself affordable car insurance in Dubai and the rest of the UAE, all you have to is:

  1. Visit the insurance provider’s website or go to a vehicle insurance marketplace like policybazaar.ae
  2. Fill out an online form with all the specifications to get car insurance quotes in Dubai, Sharjah, Abu Dhabi, and the rest of the UAE
  3. You’ll be presented with a list of cheap car insurance Abu Dhabi & Dubai plans that are designed to cater to a variety of needs and budgets.
  4. Compare car insurance plans and choose the plan that best fits your requirements.
  5. Submit relevant documents and make a payment at the end. 

Car Insurance Renewal

Most of the car insurance policies are for a 12-month term only and need to be renewed by the policyholder at the end of the year. This means that you'll have to initiate the car insurance renewal process at least a few days before the expiration date. Generally, a grace period of one month is provided to the policyholders to allow them to get all the paperwork in place that's needed to get a car insurance renewal in the UAE. If you think that you already have the best car insurance in Dubai which meets all your needs, you can continue with the same car insurance policy. However, in case you are not satisfied, you can find the best car insurance in Dubai on policybazaar.ae

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How to Renew Car Insurance in the UAE?

You need to renew your car insurance before its expire date. Car Insurance renewal takes less than a minute when you renew your car insurance online in Dubai and the rest of the UAE. All you have to do is:

  • Visit the website of the insurance provider and locate the renewal portal after you log in.
  • Click and open the portal where you will find a form of insurance renewal for car
  • Fill out the required details which may include your policy number and a few other personal details.
  • Select any add-ons and continue to make the payment.
  • Once completed, download the receipt and the policy documents and finish the process.

The steps may differ slightly as per the insurance provider but the gist of the process remains the same. You can also renew the insurance plans offline by contacting the insurance broker or the branch office.

What to do After a Car Accident in the UAE?

In recent years, there has been an exponential increase in road accidents in the UAE. There are several reasons behind such mishaps and that is precisely why car owners should know all about car insurance claim procedures in the UAE. Keeping yourself educated avoids unnecessary hassles of filing wrong claims and delayed reimbursements or rejection. Having a clear idea of what’s to be done after a car accident is always a bonus. Here’s a quick guide of steps that need to be followed:

  1. Call the Ambulance: In case of a medical emergency, first, call the ambulance and make sure that the injured receive primary care. 
  2. Lodge Police Complaint: Get in touch with the police and report the matter. This is an important step to be followed to get a car insurance claim. 
  3. Inform Your Insurance Provider: Your car insurance company needs to be notified about the accident. 
  4. Drive the Vehicle to Workshop: Drive your car to an insurance company partnered workshop. Wait for help to arrive if the vehicle can’t be driven. 
  5. Follow-up with your Provider: Keep a track of your claim processing and vehicle service by staying in touch with the insurance representative.

How to File a Claim for Car Insurance in UAE?

If the right claim filing procedure isn't followed, your claim might get rejected. Here are a few simple steps to help you in filing your car insurance claim in Abu Dhabi, Sharjah, Dubai, and the rest of the UAE:

Step 1 - Inform the Insurance Provider ASAP

Contact your car insurance company as soon as possible to ensure a fast and hassle-free claim settlement in the UAE.

Step 2 - Cooperate and Provide Complete Information

Notify your insurance provider with complete information to support your claim like your full name, policy number, policy duration, date & time of the accident, a copy of the driver's license & license plate number of all the parties involved, along with names & contact details of all those involved.

Step 3 - File a Police Report

In case of an accidental or theft-related claim, visit the nearest police station to file a complaint. Make sure to get a copy of your complaint as some car insurance company asks for it.

Step 4 - Get the Vehicle Supervised

Once you have informed your auto insurance provider, a surveyor will be assigned to assess your case. The surveyor will evaluate your case and will inspect and examine your vehicle so that your claim can be duly processed.

Step 5 - Final Settlement

Once the insurer receives the surveyor’s report on the damage and cost of repair, your case will be resolved in compliance with the plans you opted for. In case of a cashless claim, the expenses are directly paid to the network garage.

Why Should You Buy Car Insurance Through Policybazaar.ae?

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Policybazaar.ae is committed to offering an extensive range of insurance products to cater to the needs of a variety of vehicle owners. You can buy cheap car insurance in Dubai and the UAE by comparing various plans at Policybazaar.ae. Apart from this, we allow you to easily navigate through a platform that lists some of the best car insurance   Dubai online, all in one place. Here is a list of reasons for you to buy your car insurance in Abu Dhabi and the rest of the UAE from Policy Bazaar UAE:

  • Amazing offers on car insurance  Dubai online.
  • You can compare car insurance plans and their features offered by various car insurance UAE providers and selecting the best plans.
  • You have access to some of the most affordable and suitable car insurance policies.
  • We have a team of insurance advisers to provide customer assistance through email and phone.
  • Policybazaar.ae has the provision of after-sales service to offer unparalleled sales assistance.

Car Insurance FAQs

Q: What is the Validity of a Car Insurance Policy in Dubai, Sharjah, Abu Dhabi, and the rest of the UAE?

Ans: A vehicle insurance policy is valid for 12 months and has to be renewed annually. In case you fail to renew your plan, a 1-month grace period is offered so that you can renew your Dubai vehicle insurance plan. This way, the status of your plan can remain active.

Q: How is the Car Insurance Premium Formulated?

Ans: The premium you pay for availing car insurance in Dubai, Sharjah, Abu Dhabi, and the rest of the UAE is affected by several factors such as the following

  1. Driver’s age
  2. Driver’s experience
  3. Make and model of the vehicle
  4. Vehicle’s age
  5. Car’s value
  6. Driver’s claim history
  7. Type of car insurance plan and the add-on covers.
Q: What is Comprehensive Insurance Coverage?

Ans: A comprehensive car insurance plan includes the benefits of a third-party liability plan with that of own damage plan. It provides insurance coverage for damage repair expenses of your own automobile and those of any property because of a road mishap.

Apart from accidents, the instances mentioned below are covered as well.

  1. Fire
  2. Overturning
  3. External explosion
  4. Theft
  5. Burglary
  6. Repairs
  7. Damage caused to your vehicle by any third-party on purpose

Since a comprehensive car insurance plan offers enhanced insurance benefits, it comes at a higher insurance premium for obvious reasons. While a comprehensive insurance plan offers adequate insurance coverage, it is available only if your car is less than seven years old.

If you buy a comprehensive insurance plan, you can opt for some add-on covers in order to avail the desired coverage. Add-ons like personal accident cover, death cover for the driver as well as other passengers, an extension of the area(cross-country) to file a claim, coverage for rental vehicles etc. are widely opted for by the insurance buyers.

Q: What is Third-Party Liability Coverage?

Ans: If you buy third-party liability coverage, you can enjoy insurance coverage for damages caused to a third-party in case your vehicle meets with an accident. It provides coverage in case there is a loss of life or any bodily injuries caused or damages are caused to a third-party’s property because of an accident caused by your car.

While it comes at an affordable premium, it doesn’t offer coverage for any damage caused to your own automobile.

Q: Is it Necessary to Buy Car Insurance in UAE?

Ans: By Law we need to have car insurance in the UAE to drive a vehicle legally in UAE.

Q: What is the Difference between Comprehensive Insurance Plan and Third-Party Liability Insurance Plan?

Ans: Here is the difference between a comprehensive insurance plan and a third-party liability car insurance plan.

 Third-Party Liability Insurance Plan Comprehensive Insurance Plan
  • Vehicle insurance plans purchased to cover third-party liability are formulated to cover bodily injuries/ death of a third-party along with the damages caused to the property of the third-party by the insured vehicle.
  • The insured car doesn’t enjoy any insurance coverage in the event of a loss or damage under the third-party plan. As per UAE laws, it is mandatory for vehicle owners to buy auto insurance plans for their vehicles to cover any third-party liability.
  • Comprehensive insurance plans offer adequate insurance coverage against damages or losses caused by third-parties along with own damages.
  •  It provides insurance coverage against burglary, theft, fire, accidental collisions, self-ignition, lightning, external explosions, etc.
Q: In Case I Sell my Vehicle, can my Policy be Transferred to the New Buyer?

Ans: No. Your car insurance price in Dubai is calculated on the basis of your profile, so your insurance policy can’t be transferred to the new buyer. In case you plan to sell your car, you’ll first have to cancel your insurance plan so that the new car owner can buy vehicle insurance plan afresh. However, some companies allow you to transfer your car insurance in Dubai, Abu Dhabi, Sharjah, and the rest of the UAE to another buyer.

Q: Do I Get Coverage for any Damage Caused Off the Road?

Ans: Yes, some auto insurance plans provide car insurance coverage for off-road damages. However, the insurance can only be claimed if the automobile is used for the purposes mentioned in the policy. In case it is being used for competitive events or race events, no coverage will be provided. While the T&C (terms & conditions) for off-road cover varies from insurance company to insurance company, make sure you read the policy wording carefully before buying.

Q: What are the Factors that Affect Car Insurance Price in Dubai?

Ans: There are various factors that affect your car insurance  in Dubai price. These factors include the driver’s age, the driver’s location, vehicle type, vehicle’s value, claims history and the insurance buyer’s driving experience.

Q: What are the Eligibility Criteria for Purchasing Auto Insurance in the UAE?

Ans: Anyone can buy car insurance in the UAE provided he/she is a resident and falls in the age group from 25 years old to 65 years of age, having a valid driving license since 1 year or 2 years in case they have transferred from another country to UAE.

Q. What is Insured Declared Value?

Ans. The Insured Declared Value (IDV) is the current market price of your car/vehicle at any given point in time. It is calculated by subtracting depreciation applicable on the car from the initial showroom price of the car on which you bought it.

Q. Will I need an insurance policy while registering my car?

Ans: Yes, you will need a valid, working insurance policy for your car to successfully register in UAE. 

Q. What is No Claim Bonus?

Ans: This is a gift/reward system that gives car insurance holders a discount for every claim-free year they spend with their car insurance policy in Abu Dhabi and the rest of the UAE. It is given in the form of a discount on the premium payable. No claim bonus increases every consecutive claim-free year and the rates generally differ as per the policies of insurance companies. So, if you have a payable premium of AED 1,000 and the no claim bonus is 10% then you will only have to pay AED 900 as a premium for that particular year.

Q. Can I transfer my No Claim Bonus?

Ans: Yes, no claim bonuses are easily transferable from one insurance policy/provider to another as long as it is opted by the same person. Although you cannot transfer a No Claim Bonus to another person (not even when selling the car) because it is a discount given to the driver/policyholder for not making any insurance claims. 

Q. Is it possible to obtain document of my car insurance online?

Ans: Almost all insurance providers have an online database of insurance policies with them. You can easily use your log-in details to find and download the document of car insurance online via the portal of your car insurance company if they have the service available. 

Q. What does NCB retention cover mean? Is it beneficial?

Ans: A no claim bonus retention or NCB retention cover is an add-on service that can be opted for when buying comprehensive car insurance in Abu Dhabi, and the rest of the UAE. It ensures that the policyholder gets to redeem the no claim bonus discount even after filing an insurance claim in the concerned year.

Q. Is there a coverage option to include paid drivers in car insurance in the UAE?

Ans: Most car insurance companies Dubai do not cover paid drivers in their basic plan services but they do offer an add-on that allows the policyholder to buy an extended insurance cover for their paid drivers. Check with the insurance company individually to make sure they offer the said service. 

Q. What are the two types of accessories?

Ans: Car accessories are broadly divided into two types – electric and non-electric. Accessories like the air conditioner, music system, brake lights, etc. are considered electric accessories. Interior fittings, alloys on the wheels, car seat covers, etc. are considered as non-electric accessories. 

Q. What effects do car theft devices have on car insurance Dubai prices?

Ans: The premium of your car insurance will be higher if it is recognized as a high-risk vehicle by the insurance company and vice-versa. Since anti-theft devices for cars lowers the risk of theft significantly, installing them significantly lowers the premium of car insurance that you are buying. 

Q. Can a filed claim be cancelled?

Ans: Yes, you can always cancel a claim after you have filed it already and happen to change your mind. Just contact the insurance company via your broker or the customer service portal and ask them to initiate the cancellation process. 

Q. Can I transfer car insurance when selling the car to a new owner?

Ans: As long as the current insurance policy still has 7+ months remaining before its expiration, it can be transferred to the new owner of the vehicle. If it is less than 7 months, you will have to file a cancellation of the policy and the insurance company will settle the refund amount on a prorated basis. 

Q. Is it possible to have more than one insurance policy for the same car?

Ans: No, one car can only be insured under one insurance policy at a time. You can choose to get multiple add-on services but it will still have to be under a single policy only. 

Q. What is the basic issuable period for car insurance in Dubai and the rest of the UAE?

Ans: A car insurance policy can be issued for the basic 1-, 3- or 5-year period as per the choice of the policyholder. This simply means that you will have to renew the policy after 1, 3 or 5 years, whichever one you happen to choose. However, the choice of the issuable period depends on the options available with the insurance provider. 

Q. What is the renewal deadline for car insurance in UAE?

Ans: You are advised to renew your car insurance in Sharjah, Dubai, Abu Dhabi, and the UAE a day prior to the expiration of last year’s car insurance. However, in case if you are unable to renew car insurance on time, as per the laws of RTA, you will be granted a grace period of 30 days after the expiration to renew your car insurance in the UAE.