A Comprehensive Guide to Acquire Car Insurance in the UAE

After purchasing a new car, it is necessary to get it insured in the UAE. The Roads and Transport Authority (RTA) requires every car owner to acquire insurance to drive on the city’s roads legally. Car insurance in the UAE is an essential aspect of driving as it provides financial security and protection against unforeseen accidents. Insurance companies cover unpredictable calamities that may occur annually, saving you from unexpected liabilities. Also, insurance needs to be renewed every year.

Whether you are buying a new or used car or renewing your insurance, it is compulsory to apply for insurance. However, with so many insurance companies and policies available, it can be overwhelming to choose the best one. This blog will provide you with everything you need to know about the best car insurance in UAE and help you drive safely on the roads.

Types of Car Insurance

There are basically two types of car insurance coverage a car owner can choose. You can select one based on your requirements.

Comprehensive Car Insurance

Comprehensive car insurance provides extensive coverage and protects you from various types of damage. This insurance not only covers damage to your car but also includes liability coverage for third parties. It covers all kinds of repairs and accidental damage, such as theft and vandalism. Moreover, the policy provides coverage for damages caused by natural disasters such as fires, explosions, and floods. However, the coverage of a comprehensive insurance policy may vary from company to company, and you can also customise the plan as per your needs.

Third-Party Liability

It is a basic insurance policy that is mandatory by the Road and Transport Authority RTA for all car owners in Dubai. The purpose of this type of insurance is to provide coverage to a third party if you cause an accident. In this type, the damage caused to your vehicle will not be covered. The company will be responsible only for third-party vandalism. It is relatively cheaper than comprehensive car insurance. It is the cheapest car insurance in the UAE.

Documents Required

The documents required for car insurance may differ from one company to another. However, it is best to save time by preparing the documents listed below, as they are the exact requirements of most companies.

• A copy of the Emirates ID or a passport copy
• Vehicle registration card
• Driver’s license
• Record of previous insurance (if any)
• RTA certificate of transfer for a pre-owned vehicle

List of Top 10 Car Insurance Companies in the UAE

While there are numerous insurance companies with more than 60 options, choosing the one that suits your vehicle needs can be challenging. Therefore, it is highly recommended that you research and compare companies, then select the one that best meets your insurance needs. To make things easier for you, we have highlighted the top car insurance companies in the UAE. Also, you can hire an insurance consultant to help save time and find the right insurance plan for your vehicle.

• Sukoon Insurance
• Salama Takaful Insurance
• Al Wathba Insurance
• Liva Insurance
• Noor Takaful
• Mashreq
• Car insurance
• Garagi
• Yas Takaful
• Noor Takaful

These are the best car insurance in Dubai, Sharjah, Abu Dhabi, and all around UAE that will make the whole procedure seamless and hassle-free.

Factors Affecting the Cost of Insurance

Calculating car insurance costs in the UAE depends on several factors, including the car’s value, age, model, and intended use. Typically, car insurance costs around 2% to 3% of the car’s value. 

The driver’s age and experience

Acquiring car insurance under 25 is more expensive. However, if you are an experienced driver, you can negotiate the insurance policy cost.

Insurance Claim

If you haven’t made any claims on your insurance policy in the past, you may be eligible for a no-claims bonus.

Value of Your Car

The value of your car will impact the cost of your insurance policy. If your car is expensive, its insurance will also be costly. This is because high-end cars have expensive spare parts and repairs. Therefore, it will cost more to insure such valuable vehicles.

Type of a Car

The cost of insurance also refers to the type of car you own. There are different insurance cost policies for sedans and SUVs.

Age of a Car

Only vehicles older than 7 years are eligible for Third-Party Liability Insurance from companies. The older your car, the more expensive the insurance will be, as older cars tend to have more issues.

Add-ons

Your car insurance will cost more if you add on enhanced coverage. These add-ons include agency repair, spare parts replacement, personal injury compensation, and roadside assistance.

Insurance Policy Add-Ons

For more options, you can select an add-on to make a customised insurance plan and get a whole package. Some of the add-on covers are listed below:

Roadside Assistance

The services in roadside assistance include towing, tire replacements, and battery jump-starts.

GCC Coverage

It offers coverage across the GCC, including Kuwait, Oman, Qatar, Bahrain, and Saudi Arabia.

Off-road Coverage 

It protects against and covers expenses for damage caused by off-road driving.

Personal Belongings Coverage 

This add-on protects your personal belongings in the car against theft or loss.

How to Determine the Best Car Insurance Plan

To choose the best car insurance plan in the UAE, consider your vehicle type, age, and requirements. Follow these tips to determine the best insurance plan for you.

Analyse Your Needs

First and foremost, research and analyse your vehicle requirements based on its type, value, budget, and age.

Select a Reputable Company

Secondly, among the vast options of insurance companies, research and select the most reputable and reliable. Check customer reviews on websites and follow up on social media. A renowned company with a good market position ensures customer convenience with transparent policies.

Comparison of Policies

When comparing insurance policies, consider both costs and benefits. Look for companies that offer customizable plans with inclusions.

Final Decision 

Finally, select the one that suits your budget and meets your expectations. Make a well-informed decision by thoroughly comparing and contrasting the insurance companies in the UAE.

Frequently Asked Questions (FAQs)

Is car insurance mandatory in the UAE?

Yes, it is a legal requirement in the UAE to have car insurance to drive on the roads.

What are the types of car insurance in the UAE?

The two main types are Comprehensive Car Insurance and Third-Party Liability Insurance.

Which documents are required for car insurance in the UAE?

Typically, you’ll need an Emirates ID or passport copy, vehicle registration card, driver’s license, and previous insurance records if applicable.

How is the cost of car insurance calculated?

The cost is determined by factors such as the car’s value, age, model, the driver’s age, and claim history.

What are some optional add-ons for car insurance?

Add-ons can include roadside assistance, GCC coverage, off-road coverage, and personal belongings coverage.

Which are the top insurance companies in the UAE?

Some of the top providers are Sukoon Insurance, Salama Takaful, Al Wathba Insurance, and Noor Takaful.

How can I choose the best car insurance policy?

Analyze your vehicle’s needs, compare policies, and select a reputable insurance provider.

Wrap-up

Getting a car insurance plan is vital after buying a car in the UAE. Car insurance protects the car owner and other drivers on the road. Applying for car insurance is a seamless process when you do proper research on insurance companies. We hope you found this article informative and are ready to choose the best insurance plan for your needs so that you can travel with confidence on UAE roads. 

Also read: How to get a car registration in the UAE.

For more trusted guidance, real driver insights, and expert comparisons, visit arabwheels and explore the latest reviews and insurance tips on the arabwheels Blog.
Make your next move the smartest one, get informed, choose wisely, and drive confidently across the UAE.