What is car insurance? Is it mandatory to get car insurance in Dubai? How much does it cost?
Car insurance covers damages caused by accidents or theft. It also protects against legal liabilities arising from driving offences.
You should always carry proof of insurance at all times. If you don’t have car insurance, you risk being fined and even having your license revoked.
What is Car Insurance?
A vehicle insurance policy provides financial protection for a person who owns a motor vehicle. The term “vehicle” includes cars, motorcycles, scooters, trucks, buses, tractors, trailers and other vehicles used for transportation purposes.
The main purpose of this type of insurance is to protect the owner of the vehicle from any loss that may arise due to an accident involving his/her vehicle. This could be damage to the vehicle itself, injury to the driver or passengers, or damage to third party property.
In addition to protecting the vehicle owner, the insurance policy also protects the insurer (the company providing the insurance) from paying out compensation to the insured if he/she suffers losses as mentioned above.
Who needs car insurance?
Anybody who drives a vehicle on public roads must have car insurance. However, there are certain groups of people who do not require car insurance. These include:
• Those who drive only private vehicles
• People who use their vehicle for commercial purposes such as taxi drivers, delivery services, etc.
• Drivers who own their vehicle outright
• Students who drive school busses
• Drivers who operate taxis
• Drivers who work for government bodies
• Drivers who work with companies that provide transport services
• Drivers who hire their own vehicle
• Drivers who use their vehicle to commute to work
• Drivers whose vehicle is financed through leasing agreements
• Drivers who rent their vehicle
• Drivers who work in construction sites
• Drivers who work on farms
How much does it cost? In most cases, car insurance premiums depend on several factors including:
• Your age
• Your gender
• The type of vehicle you drive
• Whether you have had previous claims
• The value of the vehicle
• The number of years you have been driving
• The amount of mileage you drive per year
• The level of cover you want
• The state of repair of your vehicle
If you have no previous claims, you can expect to pay anywhere between AED 200-400 annually. On average, however, car insurance costs around AED 500-600 per annum.
Why do I need car insurance?
There are two reasons why you need car insurance:
1. To protect yourself from financial losses
2. To protect others from physical injuries
To understand how these two aspects relate to each other, let us look at some examples of what happens when you cause damage to another person’s property or injure someone else while driving.
To know more about cars world, and if you are interested in checking the estimated price of car valuation in UAE, visit our website and try our free tool of car value calculator.
Author bio:
Mohamad Omary is the Managing Director of Car Wise.Sell My Car – CarWise Car Buyers – Dubai is a car buying company that has established itself as the go-to partner for those who want to quickly sell their used cars in the UAE; reaching 20,000 satisfied customers with their easy car selling process and excellent customer service. If you’re interested in finding out more about the most convenient way to sell a car in Dubai, visit CarWise.
