Car insurance in UAE has always been a hot topic for Arab residents. If you reside in Dubai, Abu Dhabi, Sharjah, or any other zone in the United Arab Emirates, you must know the struggle people face to register their vehicle and get car insurance in UAE.
Although, legally, you may not be allowed to drive in UAE without car insurance.
Here is the good news!
You can easily register your car with an insurance company in UAE; all you need to know is how car insurance works in the UAE and the associated steps.
In this article, we will discuss car insurance in UAE in detail, along with a brief explanation of how car insurance works in the UAE.
Keep reading because we are going to mention the best car insurance companies in UAE in the later section of this article.
So, let’s begin.
Car Registration with an Insurance Company in UAE:
Traffic rules in the United Arab Emirates are rigorous in comparison with countries worldwide. Motorists know how challenging it can get to drive in UAE without bearing a license. Not only are the traffic rules rigid, but breaking those rules result in heavy penalties.
To avoid costly fines, learn how to register a car with an assurance firm in the UAE.
Let’s discuss in detail the car insurance process in UAE.
Don’t worry; we will thoroughly discuss the complete car registration process in the later section of the article. So, keep reading!
How to Register a Car with an Insurance Company in the UAE?
What comes first, car insurance or registration?
In the United Arab Emirates, it is unlawful to drive a car without insurance. In some states of the UAE, you need to buy insurance coverage for your vehicle before registration. However, registration of a motor vehicle is also mandatory in UAE.
Several companies offer distinct car insurance policies in UAE.
The tricky part is, which company should you invest your money in? Should you choose the cheapest option? Or, you have to opt for the very first option you see online?
While picking car insurance in UAE, make sure you’ve done your homework well.
It means you need to know why and how and why you must get car insurance to drive in the United Arab Emirates.
Let’s discuss the car insurance policies in detail to get an overview of what options you have.
Types of Car Insurance in UAE:
Car insurance policies vary around different emirates of the UAE. But, the most common car insurance policies in the United Arab Emirates are Third-party liability and comprehensive policies.
Here are details of significant car insurance policies in the UAE;
Third-Party Liability Insurance Policy:
When you experience a car accident, you require someone to have your back; to cover the loss, you just come across. Third-party liability insurance is the most basic type of car insurance. It provides coverage to the loss done by you to others. Or in other words, it protects other people when you’re the one responsible for an accident.
It covers incidents such as physical injury or casualty to third-party. If the insurer’s vehicle causes damage to a third-party car or property, the insurance company will cover the expenses. However, this policy does not cover the insurer’s vehicle loss or damage.
Note that the third-party liability insurance policy only covers the loss caused by you. For instance, the insurance will pay the medical bills in the bodily injury case. And, in property damage matters, the insurance will repair the damage caused to the other party’s vehicle by you.
Comprehensive Insurance Policy:
The comprehensive car insurance policy gives coverage against losses caused by third-party or even yourself. You can claim accidental collisions, fire, theft, self-igniting, vandalism, and extraneous explosions.
However, insurance companies in UAE are legally bound to provide coverage of 3-5% of the car value.
A comprehensive insurance policy is more costly than third-party liability insurance. You can choose basic comprehensive insurance or pick add-on coverage by paying a little more. However, comprehensive insurance is limited to 5% of the car’s value, which means that you have to pay a maximum of 5% of your vehicle’s value to attain this insurance.
Following are some additional coverage you can pick for your car insurance subscription, obviously at extra cost.
● Burglary
● Vandalism
● Fire
● Bodily Injury or Death
● Roadside Assistance
● Loss of Personal Belongings
Despite basic comprehensive insurance, drivers in the UAE can get premium comprehensive car insurance by paying extra to get more additional coverage.
Premium Comprehensive Policy:
It is one of the utmost car insurance policies in the UAE. Although, a comprehensive premium policy is available to a limited number of clients having luxury vehicles. This policy precisely covers every loss/damage caused to your car. However, you need to pay 1-2% extra.
Here are some limitations to comprehensive premium policy;
● Balanced and fixed interest rates are important factors in vehicle insurance. Balanced insurance rates decrease over time, whereas the fixed interest rates stay constant during the whole car insurance period.
● Vehicle brand, make, and respective model directly affect the car insurance rate. Sports and luxury vehicles and cars over five years old are exorbitant. Hence, getting insurance is very difficult for such vehicles. Moreover, vehicles with a record of accidents will be costly to insure.
● Men and women above the age of 25 are not exposed to higher insurance rates. The reason is that; people over the age of 25 are not considered risky drivers. However, drivers below the 25 age group may bear higher insurance rates.
Temporary Car Insurance:
If you need a short-term car insurance plan, temporary insurance will help you. The temporary car insurance can be availed from 1 day to a few months. Such type of car insurance helps you when you are driving someone else’s vehicle for only a day or so. In short, you can get similar coverage as comprehensive and third-party liability insurances but only for a shorter period.
Car Insurance Registration Steps:
The steps mentioned below will assist you in getting your car insurance in UAE.
Step 1: Make Sure Your Car is Inspected:
In UAE, only inspected cars get insurance. For that, you need to get your vehicle inspected by an authorized testing center. The car inspection costs 170 AED, and the entire process takes only thirty to forty-five minutes. Once you get the clearance, you’ll become eligible to apply for car insurance.
Step 2: Choose the Right Insurer:
Several companies in the United Arab Emirates offer car insurance. It is solely upon the motorist to pick the right insurer. You have to opt for an assurance firm and apply for insurance.
Wondering, what is the process of car insurance in UAE?
It is a cakewalk! You need to submit an insurance form along with identification documents, vehicle registration card, ownership certificates, etc.
Once submitted, the insurance company will do the remaining job for you and notify you when they complete the insurance registration process.
Step 3: Pick a Payment Plan:
Car insurance in the United Arab Emirates could be challenging if you avoid going through the car insurance policies of the insurer. You ought to determine the amount you want to pay to the car insurance company.
Remember that the more you play, the more insurance coverage you get from the car insurer.
BONUS – Best Car Insurance Companies in UAE:
Here is a list of the five top car insurance companies in the UAE.
- Noor Takaful Insurance
- Abu Dhabi National Takaful Company
- Salama Takaful Insurance
- Adamjee Insurance
- RSA Insurance
If you’re seeking a good car insurance company, you must understand your insurance needs first. Then, you’ll have to compare your requirements to the best car insurance companies’ policies to proceed further. If you find a match, you’re ready to apply for vehicle insurance there.
Conclusion:
Driving on the roads of the UAE is not everyone’s cup of tea, especially when you don’t have your vehicle registered and insured. Suppose you are a new motor vehicle owner. In that case, you must apply for its registration and insurance before you drive your wheels on the roads. Always keep track of the expiry dates of your car registration and insurance so that you can renew them on time. Also, don’t wait for the grace period as you can possibly forget the car insurance renewal, which may cause you a heavy fine.
Hopefully, this article will assist you through your vehicle insurance and registration process.
Drive safe and protect your family!
Frequently Asked Questions:
Is Car Insurance Transferable in UAE?
Vehicle insurance is transferable in UAE. However, the car owner has to request a car insurance transfer in a certain number of days. It is essential to carry out the insurance transfer soon after the vehicle is sold. After a thorough inspection and verification process, the ownership will be transferred to the new possessor of the car.
Also, it all depends on whether your car insurance company offers a transfer option. However, if your existing car insurance policy is legitimate for less than nine months, you can’t request a transfer.
How Can I Claim Car Insurance in UAE?
You can claim car insurance if your vehicle has undergone an unfortunate event. Also, if your car has met with any crash, you can request and claim the insurance. To claim the car insurance, follow these steps;
● Capture the vehicle damage or bodily injuries on your phone as evidence.
● Then, immediately report the accident to the law enforcement agency or police. Moreover, notify the car assurance firm about the misfortune. The insurance company will probably examine the vehicle and investigate the claim. Then, you have to provide vehicle and identification documents for verification.
● Get an estimation of insurance coverage and get your car insurance covered.
How Much is the Car Insurance Fee in UAE?
The car insurance fee is approximately 1.25 to 3% of the vehicle’s value in UAE. However, factors like previous insurance claims, driver’s age, and driving license validity can affect the car insurance fee.
When Should I Renew Car Insurance in the UAE?
Car insurance in the United Arab Emirates is valid for only 12-months. It means that you need to renew car insurance every year. Still, you get a grace period of 30 additional days to renew car insurance in the UAE. The RTA will impose no fine or penalty on the grace period.
How to Renew Car Insurance in UAE?
To renew the car insurance in UAE, you need to follow your insurer’s company policy. However, suppose you want to change the insurer. In that case, you’ll require copies of documents such as a driving license, passport, USE visa, and Emirates ID.
Is There Any Fine for Driving Without Insurance?
Yes, UAE traffic laws are stringent. And, you would need to settle a fine of AED 500 for driving without car insurance. You will also get four black points, and the traffic authority will confiscate your car for seven days.
Is Car Insurance Different from Car Registration?
Yes, car insurance and registration are two different processes. In the car insurance method, motorists enrol their vehicles in insurance companies. However, the drivers register the car with the government authority in the car registration process.
What is Meant by TC Number in UAE?
TC number is a unified traffic number. It specifies the individual traffic profile for customers dealing with a suitable traffic system. Using TC numbers, people in the UAE can apply for traffic services.
Can Someone Drive a Car with Expired Registration in UAE?
No. Suppose someone drives a car with an expired registration. In that case, they will have to face legal penalties, as it is not allowed in the UAE to drive vehicles with expired registration. Traffic laws in the UAE are very rigid, and motorists have to renew vehicle registration every year. Although there is a one-month relaxation after the expiry date known as a grace period, it is a bonus time given to drivers as an opportunity to renew the car registration.
What is the Most Beneficial Car Insurance?
Comprehensive car insurance is the best insurance for vehicles of any size. Not only, the insurance policy is flexible, but it also covers damages and losses caused by a third-party or insurer himself.
2 thoughts on “Car Insurance in UAE – The ultimate guide”
Thank you for your kind feedback.