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    Category: Car Insurance

    Full Coverage VS Partial Coverage Car Insurance

    Is Car Insurance Mandatory In The UAE?

    Finding a reliable car insurance plan is a fundamentally important undertaking when you purchase a vehicle in the UAE. Choosing car insurance can be a tedious and time-consuming process due to the various plan options available in the market. While having a lot of choices to select from, is desired, likewise, it also increases the level of confusion in buying the apt car insurance for your needs… There are two primary sorts of car insurance plans accessible in the UAE – third-party car insurance that offers partial coverage and comprehensive car insurance that offers full coverage against any kind of damages or losses 

    What Is Third-party Car Insurance? 

    A Third party car insurance plan only covers the damages caused to third-party vehicles and the injuries sustained by the driver. The injuries sustained by the third-party driver including death and disability are covered in this policy as well. The vehicle damages incurred due to any self or external mistakes are not covered by this plan. These include damages such as accidents, theft, or man-made and natural perils.

    What Is Full Coverage Car Insurance? 

    Comprehensive car insurance also known as full coverage covers the damages to both  parties involved. This means this insurance covers the repair expenses of your vehicle, the cost of any emergency treatment if required, and any property and personal damage to the third party. Along with this, comprehensive or full coverage insurance also covers the car in case of any damages caused by man-made disasters, natural disasters, theft, etc. Comprehensive insurance can be customized based on the needs of the client.

    Which Insurance Is Mandatory In The UAE?

    It is important to have valid third-party liability car insurance in the UAE. This means that every individual in the UAE must have a valid third-party car insurance cover. Even though full coverage or comprehensive car insurance is not mandatory, it is highly recommended. Due to the complexities of the different types of options available for car insurance, it is highly recommended that you go with a well-reputed insurance brokerage firm, such as Gargash Insurance.

    Which Insurance Cover Should You Opt For?

    Comprehensive car insurance offers wider coverage, but the premiums are also higher. Premiums for new cars are higher due to the higher market price. 

    Full coverage or comprehensive car insurance is ideal when a new car is purchased. You can check with your insurance brokerage company to get a better understanding of both plans. 

    According to Pitstop Arabia, some of the best insurance providers in the UAE are RSA Insurance, GIG Insurance, Adamji Insurance, Al-Wathba Insurance, and Arabian Scandinavian Insurance as are listed with some certified A list workshops (ESMA Certified)  such as Gargash Auto, Swiss Auto, etc.

    Overview of Third Party and comprehensive car insurance 

     

    ParametersThird Party car insurance Comprehensive car insurance 
    Coverage Covers third-party liabilities caused by the owner/driver of the vehicle Covers both third-party liabilities and own damages. It also covers losses incurred due to man-made and natural disasters
    Requirement Mandatory for all vehicles registered in the UAEIdeal for a new car, not mandatory as every vehicle will be having partial coverage 
    LimitationsDoes not provide cover for own damages and injuriesDepends on the policy
    CostCost – effective Slightly expensive when compared with partial car insurance 
    Customization NoYes, based on availability
    Road-side assistance NoYes, you can also opt to remove it as per your requirement

     

    Factors To Consider When Buying Your Car Insurance

    1. Age and type of the car: If you have purchased a new car and/or premium vehicle, it is ideal to opt for full coverage car insurance to ensure you are also covered in case of any damages caused due to natural and man-made disasters. 
    1. Your needs: If you have specific needs such as going on the off-road cover, Oman cover, etc, it is ideal to opt for comprehensive car insurance cover as you would be able to customize your car insurance plan by opting for add-ons.
    1. Budget: Car insurance premium in UAE depends on several factors like the value of the car, type of car insurance chosen, the extent of coverage, etc. It is important to be mindful of your budget and align your needs accordingly while buying a car insurance plan. 
    1. Driving history & conditions: If you work or live near an area prone to accidents or breakdowns, or are generally prone to getting into accidents, consider getting a comprehensive car insurance plan. Alternatively, if you are a cautious driver, you should take advantage of the no-claims bonus, you can speak to a trusted insurance broker to know more about this. 

    Conclusion

    To sum it up, it is mandatory to have valid car insurance when driving a car in the UAE. Third-party car insurance is the minimum requirement as per UAE laws. tr. However, it is ideal to understand both third-party and comprehensive car insurance plans and make the right choice based on your requirements. Consider both the options and choose the plan that suits your unique needs & requirements 

    References

    https://www.caranddriver.com/car-insurance/a31268853/what-does-full-coverage-car-insurance-cover/#:~:text=So%20what%20does%20full%20coverage,at%20fault%20for%20an%20accident

    https://www.emiratesnbd.com/en/customer-care/faqs/view/?q=1367

    https://www.emiratesnbd.com/en/customer-care/faqs/view/?q=1371

    https://www.axa.ae/personal/products/car-insurance

    https://www.buyanyinsurance.ae/blog/car-insurance-cover-in-the-uae

    How Can You File A Car Insurance Claim In The UAE?

    Road accidents may happen to anyone. If you have recently been involved in a car accident, the first thing you should do is remain calm and collected. In order to cover the damages you will be required to make a claim with your insurance company. . See what you should do if you are in a car accident.

    1. Immediately Contact The Police

    You cannot file a car insurance claim in the UAE without a police accident report. Before you do anything else, call the police and report the accident. You can do this either by calling them on 901 or reporting the accident using the Dubai Police application on your phone, so make sure you have it downloaded after reading this blog to remain on the safer side. As part of the procedure, the police will inspect both the car and the location of the incident.

    After that, both drivers are issued a green or red paper with the accident summary and contact information. The red and green papers are issued to the parties at fault and not at fault respectively.

    1. Record The Incident On Your Phone

    Take photos of your damaged vehicle and other bodily injuries, if applicable, resulting from the accident. This strengthens your insurance claim and increases your chances of receiving fair reimbursement for the losses caused due to the accident.

    1. Immediately Notify Your Car Insurance Provider

    After you’ve reported the event to the police, your next action should be to notify your insurance provider. It is critical to provide all data regarding the accident to your insurer in order for your claim to be processed properly. If you are working with a trusted insurance broker with a dedicated claims team like Gargash Insurance, you can get in touch with them to register your claim.,

    4. Examine Your Motor Insurance Policy
    The importance of a motor or car insurance policy is often realized only during an accident, hence it is advisable to thoroughly understand the features and benefits of your car insurance policy while purchasing it. During an accident, it is advisable that you check over your insurance policy again in order to be more confident in claiming the appropriate settlement amount. It will inform you of what is and is not covered by your policy. Understanding your policy terms will assist you in negotiating with your insurance agent during the ultimate settlement of insurance claims. Make sure they have garages like Gargash Auto listed on their panel, that have a commendable service history.

    5. Gather Case Documents

    A copy of the police case report will help you if there is a dispute over the settlement.

    Documents Needed in the UAE to Process Car Insurance Claims

    • Police report
    • Car registration document or Mulkiya 
    • Car modification certificate ( if any)
    • Valid Driving license
    • Completed Claim Form
    • Emirates ID Card

    Accidents do not arrive with warnings, and we must constantly be prepared for the worst. A motor insurance policy can significantly reduce the amount of money you spend in the event of an accident. It alleviates a significant weight during such a difficult and traumatic period. 

    Get your auto insurance policy from Gargash Insurance to simplify a complicated and time-consuming process. They guarantee to be there for you when you need them the most.

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