So it’s time to renew your car insurance

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  • Changing your provider may prove a canny financial move.
  • UAE legislation changes have made premiums pricier, but drivers are better covered.

When it comes to renewing your car insurance policy, it can be tempting to simply pay the same company for the same coverage as before. If it ain’t broke, don’t fix it – right?

However, savvy drivers should consider the finer details of their existing document, and decide whether both the comprehensiveness of their coverage and its price-point meet their needs.

Many car insurance companies change their rates multiple times a year, so it’s perfectly feasible that you may get a worse deal.

Also if you’ve had an accident in the past year, your insurer is likely to load your premium. Shopping around for a better policy needn’t be an interminable chore either; the UAE has multiple car insurance comparison websites to browse, such as www.aqeed.com.

Car insurance policies in the country are valid for 13 months – comprising one year of registration plus a further month’s grace period. Only after your car is insured can you get it registered, and tested if it’s older than two years. Driving without insurance is not only illegal but could prove financially ruinous if you’re involved in an accident.

There are several types of insurance to choose from. The cheapest is third party liability, which covers the other driver in the event of an accident but not your own vehicle. Fire and theft can be added to this policy. At the other end of the scale is premium comprehensive policy, which covers almost everything on high-end vehicles.

In the know

A survey last year revealed that 30% of UAE drivers don’t know what level of coverage they’re agreeing to when buying an insurance policy. For the sake of your bank balance and your peace of mind, make sure you fall into the informed 70% group.

The price of your new policy will be calculated according to a variety of factors such as your experience on the road and the type of vehicle. Age can play an important factor as well – male drivers under the age of 25 are subject to a higher rate, as this demographic is the most likely to be involved in an accident. Drivers who can produce a no claims certificate will also see their premium substantially reduced, as this shows that they are less of a risk to cover.

If you’ve decided to change your insurance provider, you’ll need to present copies of your passport and UAE visa, as well as your vehicle registration details and UAE driving license.

Time for change!

Drivers should also be aware of the far-reaching legislation changes which came into effect at the start of 2017 when new rules pertaining to car insurance were introduced in the UAE. Although this overhaul has bumped up premiums by an average of 15%, it has also ensured that the nation’s drivers are more comprehensively covered than ever before.

For instance, insurance companies are now mandated to provide the not-at-fault party with a replacement vehicle for 10 days after the accident, and the maximum liability for third-party property damage has increased from AED250,000 to AED2 million.

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Aqeed is an insurance technology company that aims to make insurance simple, transparent, and accessible. We are on a mission to help you become better at everything related to insurance. From the decisions you make to the choices you take, you are In Sure Hands.

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