Car insurance is compulsory for all UAE vehicle owners, but there are several factors and value-added services to consider when signing up for a new policy. If you’ve bought a new car, dealers often offer a free year of insurance. But don’t automatically renew without checking out cheaper alternatives first. Factors to consider include:
1. Comprehensive or third-party Newer car owners require a fully comprehensive policy (covering all eventualities). Older vehicle owners can opt for a third-party policy (mainly covering fire and theft).
2. The brand The more expensive the car, the higher the insurance premium, so drivers must factor their annual insurance costs into the purchase price of new car.
3. Your age How old you are will determine how much you pay. Drivers under 30 can expect higher premiums, as can those driving for less than a year.
4. Oman and GCC cover Where you want to drive can affect how much you pay. Some policies automatically offer Oman cover but others expect you to pay extra.
5. Off-road cover Dune-bashers and those that make short cuts in the city across wasteland would be advised to add off-road cover in case of an accident or breakdown.
6. Breakdown cover No one wants to be stuck on the side of the road at 3am trying to track down a garage. While you might need to pay more, breakdown cover is worth it.
7. No-claims discount If you have a good driving record, seek out an insurer that will reward this with lower premiums. Other discounts to ask about include a spousal/family discount if more than one car from one family is insured with the same provider.
8. Time savers For those with busy lives, ensure your policy includes a replacement car if you have an accident. Some insurers will also register your car for you free for charge.