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Understanding the 5 Types of Car Insurances in Dubai

What is the first step after buying a car in Dubai? Registering and insuring your car as you cannot drive a car without insurance in Dubai as well as the other Arab Emirates. But to make sure to get the best suitable coverage for your car, you must understand the 5 different types of insurance policies in Dubai.

1. The Third Party Liability Insurance

This is the basic and often the cheapest coverage that is mandatory in Dubai by law. What does it cover? It covers the bodily injury or property damage to any third party by the insured vehicle but it does not cover the car owner’s damage. The policy also does not cover damage by fire or car theft. Simply put, if you are buying this insurance, you have to pay for your own repairs in case of an accident.

2. Third Party Liability Insurance with Theft and Fire Coverage

When the basic third party liability insurance only offers coverage to third party damage, but you can also include add-ons like theft and fire coverage but that will increase the premium cost.

3. Basic Comprehensive Policy

This is an expensive alternative to the mandatory third party liability and often the best option for new and expensive cars with higher repair costs. This policy covers third party damage along with the policy holder’s own loss. The coverage is also detailed and covers damage by almost all possible causes like accident, theft, fire, lightning, etc. Even though it is expensive than third party liability but it also offers better value for your money. According
to the recent new changes to car insurance laws, the insurers can charge a maximum amount of 5% of the car value.

4. Comprehensive

Policy With Add-ons You can also add add-ons to your basic comprehensive policy by paying more. These add-ons can include free insurance in GCC countries, dealer repair, windscreen damage coverage, etc.

5. Premium Comprehensive Policy

This is the most expensive insurance policy in Dubai but covers almost everything. In most cases, insurers only offer this policy to limited clients with sports cars or other expensive luxury cars. Even though there are 5 different types, but there are two basic ones, third party liability, and comprehensive package. For those who want to save more on premium and drive old cars with low-cost repairs, third party liability may suit them better. On the other hand, owners
of new and luxury cars with expensive repair costs can find comprehensive insurance policy as a most suitable option.

Read more about car insurance services from AFIA Insurance

AFIA Insurance Brokerage Services L.L.C. registration no. 85, under United Arab Emirates Insurance Authority