Car Insurance

What is Car Insurance?

Car insurance, also known as motor insurance, is a type of insurance that protects you from financial and legal liability in case of an accident. Since it is a mandatory requirement in the UAE, when you buy car insurance, the insurance company will cover an extent of the costs associated with any damages, injury, theft, etc., of the car as per the terms and conditions of the car insurance policy.

Click below to get car insurance quotes for Dubai, Abu Dhabi, Sharjah, and other UAE emirates.

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Click below to buy car insurance online for Dubai, Abu Dhabi, Sharjah, and other UAE emirates. Clicking here will redirect you to GIG Insurance website.

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Read on to learn more about car insurance in UAE.

Why Do You Need Car Insurance in UAE?

It is mandatory for all car owners and new car buyers in UAE to buy car insurance in UAE to be covered for legal and financial obligations that may arise due to an accident. Typically, car owners buy car insurance for the following benefits:

Coverage for injuries: In an unfortunate accident, car insurance can cover medical expenses and prevention of death and bodily injury to all the parties involved.

Coverage against theft or loss: If somehow your car is stolen or damaged due to a natural calamity, your insurer can pay you the current market price of the car subject to the extent of the vehicle value declared in the insurance contract. Do note that this feature is included only in Comprehensive Insurance Policy, also called Full Insurance Policy.

Coverage against other party damage: An accident with your vehicle may cause material or bodily damage to the other party. In such cases, a Third Party Car Insurance can cover your settlement amount.

In addition to these major coverages, you can get a wide range of add-ons with your car insurance as per your specific needs like:

Documents Required to Buy & Renew UAE Car Insurance

Whether you buy car insurance online or offline in any of the UAE emirates, including Dubai, Abu Dhabi, and Sharjah, the following are the documents required for it:

1. Documents for buying new car insurance:

• A proof of name: It can be a copy of Emirates ID, your passport, or visa page 

• A proof of date of birth: One of the above documents would suffice 

• Vehicle details: For this, get a copy of the vehicle registration document that includes vehicle registration number, engine number, chassis number, and other manufacturing details 

• Driver’s License 

2. Documents for renewing car insurance:
When renewing a car insurance, in addition to the document you need for buying new car insurance, you would also need to produce:

• No-claim Certificate and 

• Number of your previous car protection policy, if you had any 

Learn the step-wise process to buy car insurance in UAE.

Why choose car insurance from Gargash Insurance?
Gargash Insurance is a trusted name by over 50,000+ happy customers in UAE, especially in Dubai, Abu Dhabi, and Sharjah. Our advisors guide you end-to-end through the process of choosing the best car insurance to make a claim.

The benefits of buying a car insurance from Gargash Insurance are:

• EMI facility: You can divide your car insurance payment into EMIs of 3, 6, and 9 months.  

• Repair up to 5 years: Avail up to 5 years of agency repairs. 

• 15 years full car cover: Long-term coverage keeps you from the hassle of renewal 

• Off-road cover: Covers theft and accident of car on dune trails, safari, etc. 

• No claim discounts: For every claim-free year, avail discount on car insurance renewal 

• Rent a car facility: In case the insured car is under repair, get a replacement car to use. 

• Dedicated Claims support: In case of filing a claim, we side with the insured and negotiate with the insurance provider to furnish the highest payout possible. 

FAQs

Is it necessary to have car insurance in UAE?

Yes! As per the UAE laws, it is necessary that every car owner in the UAE gets car insurance coverage for legal and financial liabilities.

How can I renew my car insurance online?

You can renew your car insurance online by requesting a quote here. Alternatively, you can also call us on 800-Gargash or visit our branches in Dubai, Abu Dhabi, or Sharjah, Our team of car insurance experts will provide you all the information and assist you through the process

What is a comprehensive car insurance plan?

A Comprehensive Car Insurance or Full Car Insurance covers the insured for any damage that may occur to their car due to accident, vandalism, or natural calamities. This is in contrast to a regular third-party car insurance that primarily covers losses caused to the other party involved in an accident.

Who is eligible to buy car insurance plans in the UAE?

Anyone with a valid driving license and vehicle documents can apply for car insurance plans in the UAE — including expats. The granting of car insurance by the insurer, however, would depend upon document verification and other factors.

What is the complete tenure of car insurance in the UAE?

Typical car insurance in the UAE is valid for 13 months. This actually combines 12 months of the insurance plan tenure and a grace period of 1 month for car insurance renewal.

If you want to skip the hassle of car insurance renewal annually, you can opt for long-term car insurance in UAE. They usually come with lower premiums.

Can I get a comprehensive insurance policy for my old vehicle?

Yes, you can buy a comprehensive car insurance policy for your old vehicle. As a prerequisite, you must provide proof of past insurance(s) for the vehicle. That said, it is up to the insurer to grant the comprehensive insurance plan as per their criteria.

What is no claims discount or no claims bonus?

Responsible driving is not just safe, it’s also rewarding. If you need not make a claim for a year on your car insurance, you can apply for no claims discounts on the premium of your car insurance renewal as a reward. However, the amount of discount or bonus varies for different insurers. Also, a no-claim bonus is transferable to another car and insurer as well.

How does agency repair differ from non-agency repair?

In case of agency repair, your car damages would be fixed at one of the car dealerships of your car’s brand. While in the case of non-agency repair, it is taken care of at one of the workshops or garages approved by your insurance agency.

Although a non-agency repair facility comes with a lower car insurance premium and is serviced faster, some prefer the agency repair option as it covers repairs for them being official dealers/importers of the car’s brand.

Learn details of agency and non-agency repairs in car insurance in UAE.

What is the procedure to cancel my policy?

To cancel your car insurance policy, first off, you need to inform your car insurance broker. The representative would start the process from their end at the earliest. To initiate the process of cancellation and refund (if applicable), certain documents will be required and the process may take a couple of weeks.

Once cancellation is approved, keep handy the original car insurance policy papers; you would need them for buying a new car insurance policy or to claim a no claims discount.

How much is the cost of car insurance in the UAE?

The average cost of car insurance ranges from 1.3% - 1.6% of the value of the car. However, The cost of car insurance or premium depends on a number of factors including the selected car insurance company, type of car insurance chosen, and also factors such as the model of the car, the driving history etc.

What are GCC Spec Cars?

GCC cars are manufactured specifically to withstand the extreme weather and temperature of GCC nations (UAE, Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia). When buying motor insurance online in Abu Dhabi, Dubai, or other UAE emirates, insurance providers give preference to GCC cars as they pose a lower risk of damage.

Can I get car insurance for Non-GCC cars in UAE?

Yes, you can get car insurance for Non-GCC cars in UAE. However, do note that not all online motor insurance providers in Dubai, Abu Dhabi, Sharjah, etc., are open to covering Non-GCC cars; and those who do may charge a higher premium than a GCC equivalent.

Can I transfer my car insurance policy from one car to another?

It depends. If you are replacing your old vehicle with a new one, you need to inform your insurance broker or provider, whether you can transfer your existing car insurance to the new vehicle will depend on a number of factors and the decision will be at the discretion of the car insurance provider.