Car insurance is a financial protection and contract between an individual or business and an insurance company. It provides financial protection in case of accidents, damage, theft, or injuries involving the insured vehicle.

Policyholders pay premiums regularly, and in return, the insurance company covers specified costs up to the policy’s limits. Car insurance typically includes liability coverage, which pays for injuries and property damage caused to others, and may also offer coverage for the insured vehicle’s damage or loss. Optional add-ons like comprehensive and collision coverage can further protect against various risks. Regulations and coverage options vary by location and insurance provider.

Why car insurance is mandatory in UAE?

Car insurance is mandatory in the UAE (United Arab Emirates) to ensure financial protection for both the driver and other parties in the event of accidents or damages. It helps cover the costs of medical bills, repairs, and any legal liabilities that may arise from accidents. This requirement promotes responsible driving and helps maintain a safer environment on the roads while also preventing potential financial burdens on individuals involved in accidents.

 the rules and regulations regarding motor insurance in the UAE were as follows:

Mandatory Coverage: Third-party liability insurance is mandatory for all vehicle owners in the UAE. This coverage ensures that if you cause an accident resulting in injury or damage to another person’s property, the insurance company will cover the costs.

Comprehensive Coverage: While not mandatory, comprehensive insurance is highly recommended. It covers not only third-party liabilities but also damage to your own vehicle in case of accidents, theft, or natural disasters.

Insurance Certificate: It’s required to carry a physical or digital copy of the insurance certificate in your vehicle at all times as proof of coverage. This certificate is issued by the insurance company and should be presented to authorities if requested.

No-Claims Discount: Insurance companies offer no-claims discounts to drivers who do not make any claims during a policy term. This can lead to reduced premiums when renewing your policy.

Premium Payment: Insurance premiums can be paid annually or in installments, depending on the insurance company’s policies.

Renewal: Insurance policies need to be renewed annually. It’s important not to let your policy lapse to avoid penalties and ensure continuous coverage.

Personal Accident Cover: Some insurance policies might include personal accident cover for the driver and passengers, offering compensation in case of injury or death due to an accident.

Exclusions: Insurance policies usually have certain exclusions, such as driving under the influence of alcohol or drugs, participating in races, and using the vehicle for purposes other than those stated in the policy.