Car Insurance Tips for Expats
It is mandatory in the United Arab Emirates to have car insurance for all registered vehicles. The minimum legal requirement is third-party insurance, which covers damages to other parties in an accident. It includes damage to other vehicles, private property, and bodily injury or death to third parties.
The Roads and Transport Authority (RTA) of Dubai closely monitors compliance with this law. It is essential to provide valid insurance proof to renew a license plate or register a new car in Dubai. Without valid insurance, it is impossible to register or renew a license plate, and driving without car insurance UAE can result in heavy fines and legal consequences. Therefore, it is crucial to understand car insurance for expats in Dubai.
Read on to learn about expat car insurance and the best companies to buy car insurance in UAE.
What you need to know about expat car insurance
Car insurance in Dubai is a legal requirement. If you have just arrived in the United Arab Emirates, you should know the tips for car insurance for expats in Dubai before buying or renting a car:
Type of Insurance
Car insurance in Dubai falls into three main categories:
- Comprehensive Insurance: This type of insurance offers full protection for the car and its passengers. It covers all damages caused by traffic accidents, even if you are at fault. Additional coverage includes car collisions, theft, fire, natural disasters, and liability for bodily and financial damages to third parties.
- Third-Party Liability Insurance: This is the basic and legally required insurance for all cars in the UAE. It covers damages your vehicle causes to another person’s property or injuries to others. However, it does not cover damages to your car.
- Roadside Assistance Cover: This insurance provides emergency services, including battery replacement, breakdown assistance, puncture repair, and towing services. It is beneficial for individuals who frequently drive or use their cars extensively.
Car Insurance Price
Your car insurance in UAE costs depend on the value of your vehicle and the coverage you choose. Prices generally range from 1.25% to 3% of the vehicle’s value as an annual premium.
However, there are ways to reduce the overall cost of owning a car. For example, choosing a cheaper car or installing a GPS vehicle tracking system and other security features can reduce your premium. Your age, driving experience, and accident history will also be taken into account by your insurer.
Some insurers also cover personal accidents to fill this gap. The Central Bank of the Emirates sets the minimum premium for comprehensive insurance. Around 70% of all car owners in the UAE pay the minimum premium. This is Dh1,300 plus VAT for sedans, and Dh2,000 plus VAT for SUVs. The minimum third-party insurance premium is 550 dirhams for sedans and 680 dirhams for SUVs.
Required Documents forexpat car insurance
To get car insurance for expats in Dubai, you must provide the following documents.
- Original and copy of passport
- Original and copy of residence card
- Original and copy of UAE driving license
- Original and copy of car identification card
Providing accurate information is essential to avoid complications or potential accusations of fraud. By providing the correct information, your insurance coverage may be reduced, but you will not have any problems getting it.
Rental Car Insurance for expats in Dubai
If you damage a rental car, car insurance in Abu Dhabi and Dubai requires you to obtain a police report to claim coverage. Without an official report, you will be personally liable for all repair costs.
Transferring Car Insurance in Dubai
If your car insurance UAE policy is valid for more than nine months, you may be eligible to transfer it to a new car owner. Consult your insurance provider for transfer policies.
Why expats need car insurance
Expats in Dubai must have adequate car insurance because the city has one of the highest accident rates per capita. Many newcomers assume that car insurance for expats works the same way as in their home countries, leading to mistakes that can cost them later.
Some expats opt for minimal coverage, exposing themselves to financial risks in case of an accident, while others overpay for unnecessary policies. Before choosing car insurance for expats in UAE, assess your needs and consider add-ons like:
While it may be tempting to opt for basic coverage (e.g. third-party liability only), this type of policy may not provide all the coverage you need. Make sure to review your lifestyle and driving preferences and invest in add-ons like GCC, breakdown, and off-road coverage, as well as emergency services.
Read More: Ultimate Guide to Buy a Used Car in the UAE
Top car insurance companies in UAE
Oman Insurance Company (OIC)
One of the oldest and most reputable motor insurance companies in Dubai is Oman Insurance Company, which was established in 1975 and is headquartered in Dubai.
Services and Products:
The company offers a wide range of insurance services, including health, auto, life, travel, personal accident, and insurance for companies.
Features:
- The ability to personalize insurance based on customer needs.
- Extensive medical coverage in reputable hospital networks inside and outside the country.
- Digital services for faster management of insurance matters through the application.
Orient Insurance
The company is a subsidiary of the Al-Futtaim Group and has been operating in the insurance industry since 1982. Orient Insurance is popular with expatriates and locals due to its quality services tailored to customer needs.
Services and products:
- Car insurance with comprehensive and economical plans.
- International health insurance for people working in several countries.
- Professional liability insurance for various businesses.
Features:
- Flexibility in adjusting insurance coverage.
- Providing 24/7 services for customers.
- Special programs for small and medium business owners.
AXA Gulf
AXA Gulf is a subsidiary of the international AXA brand, which is known worldwide for providing advanced insurance services. The company is also very popular in Dubai and the UAE due to its excellent service and advanced technology in insurance management.
Services and products:
- Health insurance with extensive coverage and the ability to provide services abroad.
- Car insurance with the possibility of receiving immediate compensation.
- Life insurance with investment options.
Features:
- Easy access to online services through the application and website.
- The ability to purchase and manage insurance completely digitally.
- Various plans for expatriates and residents.
Abu Dhabi National Insurance Company (ADNIC)
ADNIC has been recognized as one of the pioneers of the insurance industry in the UAE since 1972. The company is headquartered in Abu Dhabi and is known for providing insurance services with international standards.
Services and Products:
- Life and health insurance.
- Marine and air transport insurance.
- Property and liability insurance for businesses.
Features:
- Long history in providing insurance services in the Middle East.
- Special attention to corporate clients and large projects.
- Multilingual support.
How to choose the right expat car insurance coverage
Dubai is a high-traffic city, and accidents are common. Car insurance for expats in Dubai is necessary to ensure financial protection in case of emergencies. Insurance helps you to have financial support in case of various accidents, such as road accidents, domestic accidents, illness, etc.
To find the best car insurance for expats in Dubai, you need to consider a few things:
- Consider your needs: Before you start comparing insurance, you need to consider your needs. For example, if you own a car, you should look for car insurance for expats in the UAE. If you are planning to travel, you should look for travel insurance.
- Compare insurance prices: The price of car insurance in the UAE varies from company to company. Before buying insurance, compare the prices of insurance from different companies.
- Check the insurance coverage: Before getting car insurance for expats, check the insurance coverage to make sure that it meets your needs.
By choosing the right car insurance in UAE, expats can drive confidently, knowing they are financially protected in case of an accident.
