2. INTRODUCTION
In the UAE it is required by law that every car on the
road is insured.
3. Types of Insurance
Different types of insurance available include:
Third party, fire and theft
Fully comprehensive
Fully comprehensive with options such as free car hire
and cover in other emirates
Not all insurance policies provide off-road driving insurance
cover. It may be difficult to get comprehensive cover for
cars over a certain age (usually seven years old) or certain
classes of sports cars.
Younger drivers may also find it more difficult to find
comprehensive insurance, particularly if male.
4. What is car insurance and why do
I need it?
Under the UAE law it is required that
every car on the road is insured. Car
insurance provides you with security and
financial protection against third party
liability claims in case of an accident.
With Comprehensive Insurance you will
also be protected against loss or damage
to your own vehicle
5. What is Third Party Liability(TPL)
insurance?
It is the most basic and cheapest form of
insurance to comply with the UAE law. You will be
insured against all sums you may be liable for,
such as loss of life, bodily injury to any third party
and damages to a third party’s vehicle or property
caused by the use of your vehicle. TPL does not
cover the cost of damage to your own vehicle. TPL
will be the only option available to you if your car
is 7 years or older (in this case Comprehensive
Insurance will not be a choice anymore).
6. What is Comprehensive
Insurance?
This insurance includes insurance under TPL and convers in
addition to that the cost of repairs or replacement to your
own vehicle and property whether you are at fault or not. You
will also be covered against damages to your car due to
accidental collision, overturning, fire, external explosion,
self-ignition, burglary, theft, or malicious acts of third
parties. Agency repair is included for cars up to the age of 1
or 2 years depending on the insurer. Comprehensive cover is
available for vehicles up to the age of 7 years depending on
the vehicle and the insurance company. You may be required
to carry Comprehensive Insurance if your vehicle is financed.
As the value of your car decreases over time you should
consider reducing your cover to Third Party Liability only;
thus saving on your premium. Consider whether the savings
are enough to offset the risk of paying the entire cost of
repairing or replacing your vehicle in case of an accident.
7. What additional cover one may
choose from?
Besides the standard cover you can also choose from a
number of additional options like:
Personal Accident Cover for the driver in the event of
death or serious bodily injury up to specified limits.
Personal Accident Cover for the passengers in the event
of death or serious bodily injury up to specified limits.
Roadside Assistance or recovery breakdown.
Rental or Alternative Vehicle Cover.
Geographical area extension Cover, for example; Oman.
Fire, Storm and Tempest cover.
8. What is agency repair?
Agency repair means that your car may only be
repaired at the manufacturer’s authorized
workshop. Most insurance companies include this
as a standard benefit within Comprehensive
Insurance for up to 2 years from the first
registration. You will need to provide a No Claim
Discount certificate (NCD) from your previous
insurer if your car is older than 1 year. Some
insurance companies offer agency repair as an
additional cover.
9. What is No Claims Discount
(NCD)?
NCD or sometimes called No Claim Bonus
is a certificate which shows the number
of years you have been insured without
making a claim. You will need to ask your
previous insurance company to provide
you with a NCD if you change to a new
insurance company.
10. What is Excess?
Excess, also called deductible, is only
applicable for Comprehensive Insurance.
It refers to the amount the insurer will
deduct from any compensation to you in
the event of a non-recoverable claim due
to an accident. The minimum excess will
be stipulated under the insurance policy
and can differ from insurer to insurer.
11. Why is UAE car insurance valid
for 13 months?
The registration period of your car
is 12 months. However, the Traffic
Authorities in the UAE give you a 1
month grace period to complete the
annual registration of your car. The
13 months covers you for that 1
month (grace period).
12. Can one cancel my policy at any
time?
A general rule is that you can
only cancel your policy when you
transfer the ownership of your
vehicle or if you deregister your
vehicle. It depends on the
insurance company if and how
much you will be refunded from
the original premium.
13. Why do I need a "Technical
Passing Certificate"?
If your vehicle registration has
expired for more than one month a
"Technical Passing Certificate" is
mandatory before the insurance
company will issue the policy. You
will need to have your vehicle
inspected by an authorized testing
center to receive this Certificate.
14. Documents Required
To issue new Car Insurance policy, we need the following
information:
Name and Contact details ( Passport copy with Visa page /
Emirates ID)
Date of Birth
Vehicle details – Make, Model, Year of Manufacture
Copy of Vehicle Registration Card (Both sides)
Copy of your Drivers License
Confirmation that your vehicle is GCC specified
Details of claims registered, if any. If there are no claims
registered, No Claim letter for the number of unclaimed
years.
15. Documents Cont.
In order to obtain vehicle insurance it is necessary to have a valid
UAE residence visa and a UAE driving license with at least one
year's validity. Proof of any previous no claims discount should be
provided when arranging insurance, as it can make a significant
difference to the cost.
Insurers require the following documents:
Valid passport with residence visa
UAE driving licence
Sight test and/or a copy of the home driving licence
Vehicle details; model, age
Vehicle registration documents
Proof of no claims if available
16. Documents cont.
the insurance company will still want to receive proof of your
identity, driving experience and vehicle details. If the car is
registered in your name you need to submit:
Copy of your driving license
Passport copy (main page and visa page)
Copy of the Vehicle Registration card or if it is a new car that has
not been registered yet, a copy of the (pro-forma) invoice, or
customs clearance documents declaring the vehicle details.
If the vehicle is registered as a company car you need to submit:
Trade License copy
Copy of the Vehicle Registration card or if it is a new car that has
not been registered yet, a copy of the (pro-forma) invoice, or
customs clearance documents declaring the vehicle details.
18. 11 Factors That Affect Car Insurance Rates
Demographic factors
1. Gender and Age
Young men usually incur higher rates than young women as statistically, more male
teenagers have accidents than female teenagers. However, older men generally
have better rates than older women. Some evidence suggests that older women
are in more minor accidents than older men – though the difference in premium
costs usually isn’t drastic.
2. Marital Status
Married people tend to have fewer accidents than single people; therefore,
getting married (especially for men) can significantly lower your rate. How much
your rate decreases depends on your previous driving history – if you are a man
who has never been in an accident and has a clean driving record, you could see
your rates nearly halved.
19. 3. Where You Live
Because most traffic accidents occur close to home, the
area you live in greatly affects your rates. More densely
populated neighborhoods with more cars mean you are at a
higher risk of accidents, theft, and collisions with injuries.
Repairing your car also costs more in some areas, and some
areas have higher rates of theft. Plus, in this economy,
many urban areas with high unemployment rates have a lot
of uninsured drivers, as many people can’t afford to insure
their cars. Detroit and Philadelphia are two of the most
expensive cities in which to insure a car, as they both have
high traffic density and high rates of uninsured drivers.
20. 4. Credit Score
Many insurance companies take your credit score into
account when determining your rate. There is no
specific point at which your credit score begins to affect
your rate, but in general, lower scores mean higher
insurance premiums.
(credit score, a numerical value that reflects a
mathematical analysis of your debt, your payment
history, the existence of liens or other judgments, and
other statistical data collected by the credit bureaus.)
In other words, your credit score is the compact,
simplified version of your entire credit history, all rolled
up into one tidy three-digit number.
21. 5. Profession
Auto insurance companies may also make correlations
between a person’s risk of accident and their
profession, and they can adjust your premium
accordingly if they think you’re more likely to get in an
accident. For example, delivery drivers and journalists
are on the road constantly, and thus are more likely to
be in an accident, whereas airline pilots often just drive
between the airport and home, and don’t spend much
time on the road. Others, such as police officers,
paramedics, nuns, and insurance underwriters, often
receive a good rate, as they are seen to be more careful
than the average driver.
22. Car-Related Factors
The car you drive significantly affects your rate, since
some cars are more likely to be stolen, lack safety
features that prevent accidents, or cost more to repair.
6. Safety Rating
Owning a vehicle with a high safety rating means there
is a lower chance of needing to pay for your or your
passengers’ medical bills – therefore, your rate will be
lower. Owning a car with a lower safety rating, however,
will usually result in a higher cost.
23. The safety rating is based on several factors, including the
likelihood of the car’s owner getting into an accident, and
also how likely a passenger is to be injured in an accident.
Safety features such as airbags, automatic seat belts, and
traction control help make your car safer, which makes you
less likely to get in an accident, as well as making it less
dangerous.
7. Vehicle Size
Larger cars are generally safer than smaller cars in an
accident. Therefore, many larger cars with good safety
ratings have lower premiums than smaller cars with
otherwise similar ratings. However, cars with larger engines
relative to body size tend to have higher rates – for
instance, insurance for a sports car with a V8 engine costs
much more than a small car with a V4 engine.
24. 8. Age of the Car
Though the repair costs of an older vehicle are similar to
the costs of a newer vehicle, an older car is more likely to
be “totaled” in an accident. This is because the cost of
significant repairs needed for an older car can often be
higher than the vehicle’s entire worth. Therefore, it is
likely that the owner would simply discard the vehicle and
replace it, rather than paying for repairs.
Since the cost to replace a new car is much higher than to
replace an old car, newer cars are not considered to be
totaled as often, and generally have much higher collision
coverage rates than older autos. The higher coverage
translates to a higher premium for a newer car.
25. However, if your car is quite old, you could probably
drop the collision coverage altogether and simply save
the money to buy a replacement jalopy if you get in an
accident.
9. Likelihood of Theft
Some cars are more attractive to thieves than others,
and a car model that hits the top 10 most stolen list is
likely to have higher rates than one that’s not a likely
target. But if you have a car alarm or other anti-theft
features, this can lower the premium.
26. Personal Driving Habits
While the above items do influence your overall rate, the most important
factor in determining your insurance costs is your personal driving record.
10. Driving History
If you have been in accidents, received any tickets, or made previous auto
insurance claims, the insurance company has learned that you’re more
likely to make another claim than a similar driver who doesn’t have any
blemishes on their record. If your driving record is bad enough, some
insurance companies will refuse to give you insurance at all.
27. 11. Driving Activity
Some companies can alter your rate based on what you
use your car for, the distance you drive, and where and
when you drive. Business commuters usually put more
miles on their car, and the more you’re on the road, the
more likely you are to get in an accident. You may be
able to get a discount on your insurance if you don’t
drive the car much, or don’t use it to commute to work.
Plus, if you can keep your car in a secure location, such
as a garage, it’s less likely to incur damage, which
lowers your rate further.
28. Making a Claim
In the event of an accident call the emergency hotline (tel: 999) and ask
for the Traffic Police. In the case of a minor accident with little damage
and no injuries (and all drivers involved can agree on who is at fault),
the phone operator may advise both parties to drive to the nearest
police station to complete the appropriate forms.
When possible, vehicles should be moved to the side of the road to
avoid traffic jams while waiting for the Traffic Police to arrive. There
may be a fine imposed if vehicles are not moved.
After assessing an accident, the police will give a pink copy of their
report form to the driver they believe was at fault, and its green
counterpart to the innocent party. Garages will not repair a car without
either copy of the form. The Traffic Police also take the driving license
of the person who caused the accident - it may be necessary to pay a
fee before it is returned. Only the police have the right to ask the
driver at fault for their driving licence and car registration documents.
29. The person who receives the pink form should take it to
their insurance company as soon as possible. They may
arrange for repairs to the vehicle (depending on the
level of cover), and provide a letter which must then be
taken to the police station so that their licence can be
returned. An increase in insurance premiums is the
probable result.
The holder of the green form must take it to the other
driver's insurance company, which will arrange to have
the vehicle repaired.
30. Serious Accidents
In the event of a a serious accident, call 999 and
request an ambulance and police assistance. Do not
move a victim, unless the situation is so dangerous that
you have no choice.
When particularly poor driving results in a serious
accident or death, the driver at fault can expect a large
fine and even a prison sentence. This is often followed
by deportation.
31. Blood Money
Diya, or blood money, is a fine imposed for causing death
willfully or by accident. The minimum fine imposed by the
Dubai Courts is AED 200,000, and can be higher depending on
the circumstances and claims of the victim's family.
Driving Under the Influence of Alcohol or Drugs
There is a zero tolerance policy for driving while intoxicated.
Drinking and driving will result in arrest (and most likely jail
time), fines and 24 black points on the driver's record.
Driving under the influence of alcohol or drugs may also void
insurance coverage in the event of an accident.
Cancelling Car Insurance
A motor insurance policy can be cancelled with written notice,
sent by registered mail to the insurance company. Check the
terms and conditions of the policy for specific information.
