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What are Important Aspects to Know about Car Insurance Policies in the UAE

The RTA law prevailing in different areas of the United Arab Emirates mandates availing of car insurance in the city of Dubai. Accordingly, each of the vehicle owners has to be insured against all sorts of unforeseen risks based on the willful deliberation combined with the investment amount related to a decision related to purchasing cars. In this blog post, you will come to know a few of the important aspects associated with car insurance policies in the UAE.

Read How Covid-19 Impact on Car Insurance Market in the UAE

Two Primary Things to Consider to get Insurance for Vehicles

Before you should move ahead, you have to consider two primary things to avail of car insurance in the UAE. These include the following-

The Risk Capacity related to Your Insurance Coverage

Based on the preference of a user’s subjective, companies provide the exact coverage level. For instance, if you only want to stay abide by the traffic rules of your city or state, you will go with the minimum possible insurance requirement. On the other side, if you are cautious about the scope of benefits you may get from an insurance policy, you should never forget comparing the car insurance policies available in Dubai in detail. Especially, you should opt for an all-inclusive type of insurance coverage.

Detailed Understanding about the Calculation of an Insurance Premium Amount

Most of the insurance companies and individual service providers consider a few of the important points i.e. history of an insurance claim, risk profile of a car driver and the model, the make, and the engine of a car to calculate the premium amount. Here, we have prepared a list of various factors, which may affect the premium rate drastically.

  • A car or any other similar type of vehicle with safety features have a relatively low impact on the overall insurance premium cost.
  • The premium cost for any of the exotic sports cars and top-end vehicles always remains at the higher side.
  • If a driver is less than 30years age, it will also cause a significant impact on the premium amount of your vehicle insurance.
  • The premium associated with car insurance in the UAE will be comparatively high for an untrained and naïve driver.
  • The premium amount associated with vehicle insurance becomes high in the case it offers add-on coverage options. These include breakdown coverage, off-road coverage GCC coverage, and many more.

Types of Car Insurance Policies

If you want to buy a car insurance policy in the UAE, you have to choose either of the two different types of insurance policies i.e.

The comprehensive type of Insurance

An individual purchasing a comprehensive type of vehicle insurance policy will get coverage for third party losses and losses suffered by him/her and his/her cars or properties. This type of insurance plan is relatively extensive but gives a handy comprehensive coverage. The scope of comprehensive car insurance is not only providing protection to a vehicle against fire, accident, theft, and other related malicious activities but also covers you against personal accidents depending on your requirements.

Third-Party type of Insurance

If you choose third-party car insurance in the UAE, it will give coverage to only third-party passengers and vehicles in the case of any unfortunate incident. The positive aspect of the insurance plan is that it involves a relatively low premium cost than a comprehensive one. However, car owners have to pay on their own in case their vehicles suffer damages because of any of the unforeseen events. The selection of a particular type of vehicle insurance depends solely on a car owner or car buyer only. With the availability of valuable pieces of information related to car insurance and premium amount, you will expect to get the best car insurance policy to safeguard your near and dear ones.

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