Why You Need Car Insurance in Dubai?
Car insurance in Dubai is a necessity these days for anyone who wishes to buy a car or drive one. Also known as a motor insurance, auto insurance, or vehicle insurance, this type of insurance is like every other type of insurance. You find an insurance plan that suits your needs, and you plan accordingly on what kind of coverage would be beneficial for you. In Dubai, there is an option to opt for personal or fleet insurance.
After selection of a suitable car insurance in Dubai, a person is supposed to pay a premium on a regular basis. A lot of people don’t understand why insurance is needed and hence we’ll cover the topic to make sure that there is no confusion regarding why is there a requirement for car insurance.
Why you need a car insurance in Dubai?
Having car insurance in Dubai is a requirement prescribed by the Dubai’s RTA. Car insurance provides financial protection for the person and the car in the case an unfortunate mishap happens. It also provides monetary coverage for the injuries of the other drivers, passengers, and pedestrians; It also provides cover for the damaged property.
Since a person can be fully careful and still accidents might happen, a car insurance acts as a security cover to help with financial means in case there is one. The need for insurance has nothing to do with a person’s driving capabilities and is solely a requirement for driving and safety.
Good news is that with a growing number of companies that provide car insurance in Dubai, the insurance policies have grown competitive leading to a better deal at a lesser price. If you are looking for a list of companies that provide car insurance in Dubai, you can get it here.
Why is car insurance essential?
A car insurance is necessary as it covers expenses in the event of an accident leading to vehicular damage or injuries to other passengers, drivers or pedestrians.
According to the rules that have been formulated and enforced by the RTA, all motorists, whether driving a private, commercial vehicle or a rental have to keep a car insurance in Dubai while driving at all times.
Another important aspect of car insurance is that the insuring company will have to provide financial support in the event of the car being stolen, vandalized or destroyed by fire etc.
What happens when a person hasn’t taken car insurance in Dubai?
In Dubai, driving a car without proper car insurance is illegal and amounts to a fine or even disqualification from driving. In some rare cases, a person’s car may be confiscated.
The fine for the event can depend upon the offense associated along with it while a person is liable to receive a few penalty points on the license as well.
In the case of an accident, the person will have to pay from their pocket any and all expenses that go into getting the car repaired, or for their and the victim’s property or hospital bills. The Government is currently reviewing penalties for uninsured drivers who kill or are involved in accidents.
There will also be further scrutinizing by the RTA in the case a non-insured driver is involved in any accident.
Varieties Of Car Insurance
A person can choose from three different kinds of insurance for their personal vehicles as well as the fleet. The three categories are comprehensive, third party, and a third party, fire, and theft.
- Comprehensive – This is the best type of car insurance in Dubai as it protects a person against damage to the own car and for accidents that involve other people. It may also include several other benefits and freebies, but that depends on the agreement and the insurance provider. Usually, new cars are quickly provided a comprehensive coverage as compared to older or used cars. A list of comprehensive insurance providers in Dubai can be found on our site.
- Third Party – The is the most fundamental category for car insurance in Dubai. It provides the cover from the law but has a limited scope in covering injuries to other people and their property. Any damage to self or one’s car isn’t covered by this kind of insurance.
- Third Party, Fire, and Theft – This type of car insurance is same as the third party insurance but additionally, covers the car in case of the car getting stolen or fire damage.
The car insurance provider may provide the option to allow a person to add the name of other drivers into the policy but the policy will be in your name and payable by you.
How does the cost of car insurance work out?
The insurance premium is dependant on a few factors like the insuring party’s age, the type of car, the person’s occupation, where the car is parked, the kind of car usage, and the person’s driving record and any related motoring offenses.
The car’s premium can often be lowered upon discussion and agreement with the insurance provider. For this, the person will have to pay a higher excess, which is the amount that a person has to pay towards the claim the person wants.
Usually, younger people face a higher premium because of a greater accidental risk.
However, since a lot of youth are unable to pay higher premiums, they try to look for cheap deals online, which are sometimes fake and unregulated by the authority and shouldn’t be trusted in any event.
Every year a person makes no claim from its insurance provider, they are eligible to earn a no claims bonus from the insurance provider. This is in the form of a discounted renewal cost for the person if they choose to renew the insurance with the same provider or other means otherwise. Any reduction in premium for the loan is not always guaranteed though and depends upon the market.
This usually will remain intact if the person makes a claim for an accident that wasn’t due to the individual’s fault. However, the provider of the car insurance in Dubai should be notified of any accident even if no claim is taken.
With all the details regarding why it is important to take car insurance in Dubai, it is also important to know about why your insurance may be getting rejected. And keeping that in mind, we have written about the 4 reasons that a loan application is rejected.