Before getting into the concept of comprehensive car insurance, it is essential to understand the circumstances under which a car insurance is a must in UAE. It is mandatory to drive a vehicle with a car insurance, but there are reasons why it has been mandatory. It has to do a lot, with the current situation of UAE road accidents. Although road rules are very strict in the country, unsafe practices of driving are quite common especially in the inter-city highways. This is mainly due to the fact that people drive faster on highways.
This leads to a whopping 600 accidents on the road each year in UAE. In the beginning this number does not look alarming but when you compare it with the population and size of the country, you get a disturbing ratio to deal with. For every 100,000, 24 people are killed due to road accidents. The final fact that road accidents is the second major cause of death in the country is also quite alarming. Hence, a car insurance that is a complete package is essential.
What is a Comprehensive Car Insurance?
Comprehensive Car insurance is simply a type of motor insurance which covers or protects the policyholder financially against road accidents and car theft, but with the maximum benefits. This is the wholesome package offered by car insurers in UAE, and if you love your car and your life, as well as care for finances related to it a comprehensive car insurance should be your first choice. Also, it protects your money in cases of car been bought through credit or loans.
Types of Motor Insurance Available in UAE, Based on Liability
There are two major types of car insurance available in UAE, based on liability:
- Third party liability insurance: As the name suggests, neither does this product cover damages to your car or you. This is the most basic form of car insurance you can opt for and is not a good idea, if you care for your car. Though you have to pay lower premiums, it can prove to be expensive later, when you have to shell out your own money due to an unprecedented event on the road.
- Comprehensive car insurance: These insurance plans cover the damages or loss to your car as well, along with the third party liability. This means that you get complete coverage. Although comprehensive car insurance does not cover you, it can be done through a personal accident insurance, which comes as a rider when you take a car or health insurance. Note that there are 3 further divisions under comprehensive car insurance, which includes:
- Comprehensive/Fully Comprehensive (Basic) – Insurers in UAE are legally obligated to provide this insurance at a price level of 3-5% of the value of the car. This covers damage to the own car.
- Comprehensive premium level – With an extra 2% value of the car being paid this has lesser restrictions with certain conditions and limitations.
- Comprehensive with options – This includes options such as free car hire, dealer repair, insurance in other GCC countries along with the recognition of no-claim bonuses. These will cost the policyholder around 3-10% of the car value.
What are the Major Aspects that a Comprehensive Car Insurance Cover?
The major aspects or costs that a comprehensive car insurance helps you to save on include:
- It covers loss or damage to a third party vehicle, involved in the accident or event as well as the medical expenses for the people injured or affected in the accident.
- It also covers any medical expenses, accidental damage along with loss of or any sort of damage caused to any of the personal belongings in the insured vehicle.
- Some comprehensive covers, also come with various riders for added protection.
Banks Offering Comprehensive Car Insurance Cover In UAE
Some of the major comprehensive car insurance plans that are available to residents and citizens of UAE include: