To realize the importance of motor insurance, one does not need an unforeseen mishap on the road. But you must know that it immediately comes as a savior. Many of us do not pay much heed to this piece of paper but we should. Ask anyone who has faced an unexpected eventuality with respect to their vehicle, they will always speak in favor of motor insurance. It is not a mandate in several countries but in UAE, every car must be insured. And it is a good thing too to invest for future risks. A guarantee of financial compensation for damages (of all kinds) comes as a real deal in times of need.
Thus, for a better understanding of motor insurance in UAE, here are ten things that you must know and keep in mind.
- First and foremost, the minimum length of insurance that one has to purchase is 12 months in UAE. An extra 13th month is part of the agreement sometimes.
- Applying for a motor insurance is very easy. All you need are these three documents under your name – Driving license copy, Emirates ID Copy, Vehicle Registration Copy. If in case, you are applying under a company’s name, the must-have documents are -Trade License Copy, Vehicle Registration Copy or Transfer letter and VAT Certificate (if applicable)
- Motor Insurance jargons may seem complicated but if you know some of these handy words like premium, deductibles, excess, insured value and agency/non-agency repairs, none can stop you from being a pro.
- Third Party Liability (TPL) insurance is the most basic and easy on pocket kind of insurance. As the name suggests, it covers all your third-party expenses which may have been caused by your vehicle.
- The damages to your own vehicle are not covered by TPL. For this, one must go for comprehensive insurance. New cars get it all what you want but for older ones, vehicle age plays a big role in comprehensive cover. Also, certain classes of sports vehicle do not enjoy the benefit of comprehensive insurance.
- A comprehensive insurance policy not only takes care of the damages caused to your own vehicle but also several other benefits. Include make ‘24-Hour Accident’ and ‘Breakdown Roadside Assistance services’ a part of the comprehensive cover, if not already there.
- It is a known fact that the value of every vehicle depreciates over time. One must know about the sum insured, which is always calculated based on the current market value of the vehicle.
- Renewal of car registration and renewal of insurance are dates to remember because we know that driving without registration in UAE is an offence and insurance on road is mandate.
- There is wide array of products available. Compare well, read through and then make a decision. A standard car insurance policy comes in budget but it only provides basic compensation. Hence, one must check for the additional benefits that can come at an extra price.
- Last but not the least, one must discuss the policy with the insuring company to know about the benefits, in and out. Many buyers do not care to read what their motor insurance policy covers and thus end up feeling cheated at the time of claim.