Avoiding an unexpected accident is crucial after investing a substantial amount in a new vehicle. That’s why car insurance is the ideal solution to safeguard your vehicle from different damages, such as vandalism, accidents, and collisions.

Furthermore, car insurance is not just for protecting your car but is also a mandatory requirement for all vehicles to be insured in the UAE according to the Road and Transport Authority (RTA) policy. Driving without insurance can result in a fine of PKR 38,166.32 and four black points. There are many companies that offer insurance options, but the question is, what type of vehicle insurance is best for you?

So, join us in exploring this detailed blog to determine which insurance type best meets your car’s needs.

Categories of Motor Insurance in the UAE

There are two primary types of motor insurance in the UAE, both of which cover the basic requirements based on the vehicle make and model as well as the driver’s experience. Thus, it’s important to conduct thorough research to select the most suitable insurance plan.

Let’s delve into the details and choose an option that fits your vehicle’s needs.

Comprehensive Car Insurance Policy

A Comprehensive Insurance policy covers not only third-party vehicles but also your own. This means that if your vehicle is involved in an accident with a third party, this policy encompasses the damages or loss of both your personal vehicle and the other party’s vehicle.

However, this CI policy is expensive because it provides end-to-end coverage. It includes fire, accident, collision, theft, minor crashes, explosion, lightning, and vandalism. Typically, insurance companies offer this policy at a cost of 3% to 5% of the car’s value.

Third-Party Liability Insurance

Third-party insurance is the most basic and affordable policy required for every individual by the UAE RTA law. This policy covers claims on you, including injuries, loss of life, and vehicle damages. It only covers third-party claims and does not provide any liability coverage to your vehicle in accidents caused by you.

Therefore, if you want more coverage options, you should consider adding extras to your insurance plan. Additionally, this option is fundamental and the only available option in the UAE for older vehicles. Moreover, insurance companies do not cover damages caused by illegal activities.

Insurance Policy Add-Ons

For more options, you can choose an add-on to create a customized insurance plan and get a comprehensive package. Some of the add-on covers are listed below:

Roadside Assistance

Roadside assistance services include towing, tire replacements, and battery jump-starts.

GCC Coverage

This offers coverage throughout GCC countries, including Kuwait, Oman, Qatar, Bahrain, and Saudi Arabia.

Off-road Coverage 

It protects and covers expenses from damages caused by off-road driving.

Personal Belongings Coverage 

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

In the UAE, insurance companies only allow annual payments and the insurance remains valid for up to 13 months. In conclusion, now that you are fully informed about auto insurance and have determined the kind of coverage your automobile requires based on its age, make, and model, you may choose from various auto insurance providers in the United Arab Emirates. Therefore, make a wise decision when selecting an insurance company as it is a long-term commitment.