How to Estimate the Cost of Car Insurance in Dubai?
There are more than 10 different insurance companies working in Dubai offering car insurance products to the residents. The growing competition in the last few years not only decreased the cost of car insurance significantly but also encouraged insurance companies to push the range of different products and offers to penetrate deep into the market.
With variation in offers, insurance companies, and coverage features, there is also a significant difference in price. If you are shopping for car insurance that offers the best value for your money, a little insight into different factors that can affect your cost can help you negotiate the best deal with your insurance provider. Listed are few factors that can affect the cost of your car insurance premium.
What is the difference between Third-Party Liability Car Insurance and Comprehensive Car Insurance?
Third-Party Liability or TPL Car Insurance covers you if you are at fault in an accident that injures or leads to the death of another person. It also covers you if your car damages another person’s property or public property. However, TPL insurance does NOT cover damage to your own car.
Comprehensive Car Insurance will not only cover the damage mentioned above, but it will also cover the loss or damage to your own car too. Even though a comprehensive policy may be more expensive, it makes more sense to opt for it vs. a TPL policy, so you do not end having to cover your car’s repair and replacement costs out of your own pocket.
Why is car insurance a yearly cost in the UAE and not a monthly cost like in other countries?
The up-front yearly payment for car insurance is the result of regulatory requirements in the UAE. All car insurance policies issued in the country are valid for a period of 13 months. This is to accommodate for the 1-month grace period provided by the Road & Transport Authority (RTA) to renew your annual car registration.
How can I finance my car insurance premium?
Once you have arranged a call-back from insurance providers through Souqalmal, make sure to ask them if there is a monthly payment option available instead of the standard annual payment.
Alternatively, you can also convert the annual premium payment on your credit card into affordable monthly installments. However, make sure you read about the interest rate, fees, and charges applied by the card provider beforehand.