As per the UAE RTA law, it is mandatory for all car owners to possess car insurance in Dubai. But, purchasing car insurance can be a tricky business, more so because there are many hidden clauses and conditions.
Read on to rectify any assumptions that you might have been making about car insurance in Dubai.
Most car insurers provide two kinds of motor insurance policies – a third-party liability policy and a comprehensive policy. The former compensates you against liabilities arising out of damage to the vehicle or property of a third party. The latter provides coverage for not just third party liabilities but also for your vehicle and its parts.
But, what if you need a motor insurance policy to provide you with some other benefits? Say, for instance, coverage for a passenger in your vehicle or assistance if you are stranded due to a car breakdown in a secluded place. Here is where add-on covers can be a boon.
Myth: My premium will not increase if I do not make a claim
If you make a claim against your car insurance, the subsequent premium amount might be increased by a certain percentage. However, if you do not make a claim, the premium can still increase.
This is because car insurance premiums depend on various factors such as model and type of the car, your driving record and traffic violations, and the location of your residence. For instance, if you change your residence to an area that has high cases of car theft and accidents, you are more likely to pay a high premium.
Hence, it is possible that even if you do not file a claim, your car insurance premiums might increase.
Reality: Premiums might increase even if you do not make a claim because premium amounts are dependent on a wide range of factors.
Myth: Third party liability car insurance is sufficient in Dubai
A car insurance against third party liability is mandated by law in Dubai. However, it is incorrect to believe that this will suffice.
This is because a third party liability insurance does not cover for accidents and theft for the policy holder’s vehicle. In such a scenario, the policyholders will have to bear the expenses for repairs arising from an accident by themselves. Such costs could be prohibitive, and having a comprehensive car insurance policy will make them reasonable.
Reality: A third party liability coverage does not provide compensation for your own vehicle. If you are involved in an accident, you will have to bear the high costs of the damage incurred to your car.
Myth: I am using an old car, so I do not need insurance
Older cars might be more vulnerable to accidents due to their poor performance and their likelihood of engine failure. Hence, it is important that they be covered under a comprehensive motor insurance plan.
Reality: Car insurance is important for any car, old or new.
Myth: My medical bills will be reimbursed if I am involved in an accident
Many people erroneously believe that opting for additional personal accident cover when purchasing a motor insurance will compensate for the medical bills arising in the event that their car meets with an accident. However, this is not entirely true.
A personal accident coverage does pay out a fixed amount in case certain specific conditions such as fatality, disability, and blindness. But, it does not cover you for medical bills in case of hospitalization. You must possess a health insurance policy to be covered for such costs.
Reality: Medical costs might not be covered in case of an accident other than in specific circumstances.
Myth: Gulf Cooperation Council (GCC) coverage will allow me to travel across the Gulf countries
Most of the first tier insurance packages provide a Gulf Cooperation Council (GCC) coverage. However, having a GCC coverage does not legally permit you to drive in any of the gulf nations. It only covers you for damage only to your own vehicle. However, it does not provide a third-party liability cover, making it illegal for you to drive in any gulf nation with a mere GCC.
You are required to purchase a third-party motor insurance cover at the border of the country you are wanting to travel to.
Reality: A GCC coverage only provides compensation for damages that you are responsible for. It does not provide a third-party liability cover.
Myth: Applying for car insurance claims is a cumbersome process
Filing for car insurance claims in today’s times is a fairly uncomplicated process that does not require much effort and time.
For instance, Watania Insurance has an easy 4-step process to applying for claims: call the police, inform the insurance provider, take pictures of the incident and the damage caused to the car, and finally, study the motor insurance policy to understand the cover.
Reality: Today, filing for a motor insurance claim in Dubai is simple and effortless.
A little due diligence from your side can help you purchase the most effective motor car insurance policy in Dubai. Purchase robust insurance and go zooming in your car in this beautiful city!