Are you considering <a href="https://www.thenationalnews.com/uae/transport/2023/08/12/buy-used-car-how/" target="_blank">buying a car</a> in the UAE but are unsure about the ins and outs of insuring it? If so, then look no further, because <i>The National</i> has spoken to industry experts to find out<a href="https://www.thenationalnews.com/business/money/2023/08/09/buy-car-uae-dubai-abu-dhabi/" target="_blank"> what you need</a> to know before selecting your policy. While it's common knowledge that if you are going to be driving a car then you need to <a href="https://www.thenationalnews.com/business/money/fewer-accidents-push-uae-car-insurance-premiums-about-10-lower-in-2019-1.875046" target="_blank">obtain insurance</a>, there's still a lot to consider, especially if it's your first time doing it in the UAE. "In the UAE there is a concept – the Unified Motor Vehicle Insurance Policy – which ensures that the wording of insurance policies is standardised across all insurance providers," said Jonathan Rawling, chief executive of insurance broker Yallacompare. "This means that there will not be much difference from one company to another – so you don’t need to worry about insurers tricking you with small print. "That said, insurers are allowed to provide benefits beyond the minimum standard." Some of the details that can differ in the policies include the total level of cover for damage caused. The minimum level of cover is Dh1 million ($272,294) but some providers offer up to Dh3 million, Mr Rawling said. "While Dh1 million sounds like a lot, we have all seen supercars on the roads," he said. "And, of course, we sometimes see multiple-vehicle accidents. "The limit of cover means that if you cause damage beyond that limit you have to pay the rest. This is something to think about when buying." "The worst mistake you can make is failing to disclose something – which really means giving a false answer to one of the questions you have been asked," Mr Rawling said. Examples of this could include saying that your car meets GCC specifications when it does not, or “forgetting” about your claim history. He also warned that failing to accurately disclose details could land you in trouble with the law. "Contracts of insurance impose a duty of utmost good faith on the customer as opposed to mere good faith," he said. "If you do not disclose something it can be considered fraud. "Your premium might be cheaper, but your claim might not be paid at all." There are only two types of insurance available in the UAE. You could opt for a third party liability (TPL),which covers only damage caused by you to others. Or you could opt for a comprehensive policy, which includes the same TPL cover, but in addition covers damage to your vehicle, up to the insured amount mentioned in the policy. "If at this point you’re thinking 'what about me? What about any injuries I sustain?' then you’re asking exactly the right question," Mr Rawling said. "Your medical expenses aren’t covered to any great extent by your car insurance policy, and your health insurance might not cover them either. "Some providers include personal accident cover to address this gap." "The central bank actually sets a minimum premium for comprehensive insurance," he said. "We estimate that about 70 per cent of all car owners buy their insurance at minimum premium." The minimum for sedans is Dh1,300 plus VAT, according to Mr Rawling, whereas an SUV will cost Dh2,000 plus VAT. "Given that most people can expect to pay minimum premium, shopping around is really about benefits rather than price. For TPL there are also minimum premiums. That figure starts at Dh550 for sedans and Dh680 for SUVs. "Pretty much all TPL customers pay minimum premium," he said. "If you are involved in an accident in the UAE where you are at fault, your car insurance company will typically cover the cost of damage to the other driver's vehicle and any injuries they sustained," said Toshita Chauhan, business head for health and motor insurance at Policybazaar UAE. "This is known as liability coverage. However, it is important to note that there are some exclusions to car insurance coverage in the UAE." Your insurance policy may not cover damage caused by driving under the influence of alcohol or drugs, or when speeding. "Your insurance company may have a deductible, which is the amount of money you have to pay out of pocket before your insurance company will start paying for repairs," Ms Chauhan said. "The amount of your deductible will vary depending on your insurance policy. "In addition, your insurance company may raise your rates after an at-fault accident. This is because you are now considered to be a higher risk driver." "It’s a simple process, the other driver's insurance company will investigate the accident and determine who is at fault," Ms Chauhan said. "If they find that the other driver is at fault, they will pay for the cost of damage to your vehicle and any injuries you sustained." The primary difference is in how car insurance is assessed, one expert said. "In the UAE, the focus is mainly on the car's age and type," said Ramzi Ghurani, managing partner with Petra insurance brokers. "In Europe, the emphasis is placed on the driver's quality and history of driving. "It's a fundamentally different approach here in the UAE," he added.
