Types of Motor Insurances in Dubai

Car insurance in Dubai is mandatory for both nationals and expatriates. All drivers in Dubai are also expected to present their next 13 months of mandatory insurance (third party insurance) at the time of annual renewal for car registration.


The type of covers differs from one insurance company to another. However, there are two broad categories of motor insurance covers offered in Dubai.


1. Comprehensive insurance cover:


A reputed insurance company will always put its customers' requirements first. A comprehensive insurance cover will include the following:


• Guaranteed repairs at the dealership for the first two years of new vehicle registration

• Free Oman cover

• Enhanced legal liability protection

• Cover for natural calamities like floods, earthquakes, etc.


And other optional covers such as the:


• Hire car benefit

• Protected no claims discount

• Personal accident for the driver and the passengers

• Breakdown recovery service.


Comprehensive insurance covers any loss or damage to your vehicle and liability towards the third party. A comprehensive insurance cover has a relatively higher premium, and is recommended for vehicles for the first 5 years. Some companies may even refuse to offer comprehensive insurance for vehicles above 7 years, due to reduced car value.


2. Third party insurance cover:


The third party insurance cover is mandatory in the UAE and is the most basic insurance cover. This cover ensures liability towards a third party in case of an accident.


A few multinational insurance companies offer an executive cover as well. An executive insurance cover provides high levels of cover and is highly recommended for those wanting the best insurance cover.


This insurance cover is a step above comprehensive insurance cover and includes additional covers such as:


• Guaranteed repairs at authorised dealers for a period of five years

• Further extended cover (in case of injury or death of the driver or the passengers)

• Round the clock emergency breakdown cover

• Loss or damage to personal possessions in the car

• Hire car benefit

• Cover for natural calamities like floods, earthquakes, etc.


The premium will depend on various factors like the age, driving experience of the driver, and most importantly the value of the vehicle.


It is always a good practice for expatriates to ensure they collect their 'No Claims Bonus' certificate from their home country or their last residing country. This may help them to avail competitive rates when purchasing insurance.


While it is important to choose a motor insurance that's cost-effective, it is extremely vital to choose an insurance company that provides high level of covers and has a reputation for prompt claim settlement.