A beginner’s guide to car insurance in Abu Dhabi

May 9, 2022

Car insurance in the UAE is mandatory and Abu Dhabi is no exception. When it comes to driving a car in the UAE, it is mandatory to drive an insured car. Insuring your car with a third-party policy is the basic requirement. When you buy a car, the first thing you should do is get your car insured.

Car insurance is a contractual agreement between a driver and the insurance company to cover a car owner’s needs in the time of an accident or breakdown.

Need guidance on car insurance in Abu Dhabi? The experts at Hala have put together some handy advice on everything you need to know about policies in Abu Dhabi.

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1. Choosing a car insurance policy  in Abu Dhabi 

Car insurance companies in Abu Dhabi offer two types of policies – Comprehensive and Third-party liability (TPL) car insurance. Selecting a policy for your car depends on your car make, budget and preference. However, to make a firm decision, you need to understand the difference between the two policies. 

Third-party liability (TPL) car insurance

According to the Abu Dhabi traffic laws, you must  have at least a third-party insurance policy. This policy only covers damages caused to the other party and not your car. TPL provides basic coverage and is one of the most cost-effective auto insurance policies available in Abu Dhabi.

Comprehensive car insurance

A comprehensive car insurance policy covers not just third-party liability, but also your own car’s repair costs. Theft, self-ignition, fire explosion, or acts of vandalism are all covered under a comprehensive car insurance policy in Abu Dhabi.

If you are looking for overall protection, you also have the option of purchasing a comprehensive auto insurance policy.

2. Cost of car insurance in Abu Dhabi 

The premium cost in Abu Dhabi is determined by the car’s market value. In Abu Dhabi, the average premium rate is 2.35% of the car’s value. Other factors that influence the cost include the driver’s age, the number of previous insurance claims, and the sort of car you are purchasing. In the event of an accident, you must also know how to file a claim in the UAE.

3. Documents to keep handy 

You must prepare the following documents as proof of identity and driving experience when purchasing a policy in Abu Dhabi: a copy of your driver’s licence, passport photo page, visa page, and vehicle registration card. (Or  a copy of a Pro-forma invoice in the case of a new vehicle.)

4. How the premium is calculated

Premiums are calculated based on the vehicle’s year, make, and model, engine size, claims history, and risk profile of the driver. For example, if a motorist has less experience, the insurance premium they must pay is more than if the driver is more experienced and older.

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5. How to claim your insurance bonus

If you have a pre-existing service provider, you must contact your former insurance company to acquire a ‘No Claims’ Bonus Certificate if you have never had an accident during the previous term when switching companies for your current car. As a result, if you want to present the certificate to your new automobile company, you will be eligible for a discount on your annual insurance rate.

6. Enquire about emergency services 

If you have an emergency while driving, such as running out of gas or getting a flat tire, call the emergency number listed on your new insurance card for faster roadside help. Although some insurance providers do not offer 24-hour roadside assistance, make sure to check before signing up.

Hala’s comprehensive car insurance is not only affordable and convenient, but offers a range of benefits too. Here are the services Hala offers: 

  • Towing Assistance: In the event of a vehicle breakdown or accident, we will tow you to the closest garages 
  • Premium garage repairs:  You will never have to worry about repairs when your car is in good hands. If your car needs some TLC, we will get it repaired at one of our reputable networks of garages. 
  • Flat tyre service:  If one of your tyre gets flat when you’re cruising along,t we will send someone to assist you with your tyre 
  • Dead battery and refueling: If your car gives up on you, we will jump-start your car or refuel it when it needs to. 

Things to consider when switching insurance providers 

  • Always compare insurance companies and car premiums quoted 
  • Complete the desired tariff 
  • Cancel your current policy as soon as possible 
  • Pay your insurance premiums on time

Which policy is required in Abu Dhabi? 

All vehicle owners in Abu Dhabi are required to insure their cars with at least  third-party insurance. 

What is covered by comprehensive car insurance? 

Comprehensive car insurance in Abu Dhabi covers the insured vehicle from various eventualities such as theft, vandalism, natural disasters, and so on. It also compensates third-party victims in the event of an accident.

What kind of insurance policy should I go for? 

Before purchasing a car, Abu Dhabi residents must consider their needs and compare several possibilities. You must also choose your risk tolerance, as well as how much expense you can bear and how much you can pay for insurance coverage.

Do you need more help? Let Hala help you through the process and protect your vehicle for you! Get a quote for your car now. 

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