When it comes to car insurance in the UAE, navigating through all the options can be a tedious task. However, there are two most used plans that stand out the most, comprehensive car insurance and third-party car insurance. If you recently purchased a new vehicle or you’re looking to renew your current policy, it’s always a good idea to understand the pros and cons of different types of car insurances.
Understanding Car Insurance Basics in the UAE
Car insurance is mandatory for all car owners. Choosing the right coverage plan comes down to your needs, expectations and budget. Since, third-party liability insurance is the legal requirement, it’s up to you if you wish to upgrade to a comprehensive or full coverage car insurance plan.
We have simplified the differences between the different types of plans so you can make an informed decision, considering the car insurance cost in UAE.
Main Types of Car Insurance in the UAE
Many car owners start out by using third-party car insurance but later, they discover the rest of the options available. We have done the research for you so you can weigh the ups and downs of each plan and decide what’s best for you.
What is Comprehensive Car Insurance?
Comprehensive car insurance protects your vehicle from a wide range of risks and accidents.
Key Benefits of Comprehensive Car Insurance
As compared to third-party insurance, comprehensive car insurance covers both yours and the third-party’s repairs costs. It protects your vehicle against theft, damage, natural disasters and all sorts of accidents. Depending upon your insurance agency, you can avail free repairs and auto-parts from the dealerships. There’s added roadside assistance available and many other perks that come with this plan.
Limitations of Comprehensive Coverage
Full-coverage insurance plans are generally more expensive than the third-party liability insurance. Apart from the high cost, you must pay some deductibles before your insurance can cover the rest.
What is Third-Party Car Insurance (TPL)?
Third-party liability car insurance or TPL is the primary type of insurance used if there’s any damage to a third-party’s vehicle.
Benefits of Third-Party Car Insurance
Third-party car insurance is much cheaper compared to any comprehensive or full coverage cost insurance plans. Since, it’s legally mandatory in the UAE, if you were to get in an accident, your insurer will cover the repairs for the third-party.
Limitations of Third-Party Coverage
One of the benefits of third-party car insurance can also be seen as one of its limitations. As it covers the damage caused to other cars but not your own. So, if there’s an accident, you might be at financial risk because you will have to pay for your repairs by yourself. Moreover, TPL does not protect your vehicle from theft or any natural disasters.
Cost Comparison - Comprehensive vs Third-Party Car Insurance in UAE
When choosing a car insurance plan, the cost plays an essential role. Although, comprehensive car insurance is more expensive, it gives you complete reassurance that your vehicle will be protected in all cases. On the other hand, third-party insurance is quite budget friendly but leaves you at risk of having to pay out of pocket when dealing with any big repairs.
A lot of drivers don’t understand the total car insurance cost in UAE and usually opt for third-party insurance in the first place. But later, they begin to understand the importance of a comprehensive car insurance, especially in big, crowded cities like Dubai and Sharjah.
If you own a luxury car, choosing comprehensive car insurance can be a safer option as it provides protection and repair for both you and the third-party. Since, basic coverage is a legal requirement, many people feel exposed to a certain extent with their third-party insurance.
If you feel like third-party car insurance is limited, you can choose to switch to a more comprehensive plan. In big cities, where car repairs are usually quite expensive, you can reach out to Sukoon Insurance for the comprehensive plan they offer and save both time and money.
How to Choose the Best Car Insurance for Your Needs
If you understand the extent of both coverages, depending upon your vehicle type and budget, you can make a final decision.
When to Opt for Comprehensive Insurance
If you bought a new or expensive car, you should choose a comprehensive car insurance plan, so you get full protection from theft, vandalism and any accidents.
When to Choose Third-Party Insurance
If you drive an old vehicle whose market value is quite low, choosing third-party insurance will be enough to cover any expenses you might face and fulfil the legal requirements of UAE, as well.
Choose the Car Insurance That Fits Your Budget
At the end of the day, choosing a car insurance plan is an important task because it’s like choosing the perfect and most reliable passenger for your car. Whether you choose a comprehensive or a third-party car insurance plan, make sure it aligns with your budget and needs.
Disclaimer: The information provided in this blog is for general information purposes only and does not constitute professional advice. Readers are advised to (i) obtain independent professional advise before making any decisions related to or arising out of this blog article (ii) carefully review their health insurance policy terms and conditions to understand their applicable coverage scope (as some benefits may or may not be applicable to you), limits, and exclusions. Sukoon Insurance PJSC does not make any representation or warranty of any kind in relation to this article/blog post including that any of the data, information, materials on this blog article are accurate, reliable, or complete. Sukoon Insurance PJSC hereby disclaims any and all responsibility or liability of any kind for any direct or indirect damages or losses of any kind caused to you in relation to or arising out of this blog article.
