How Do I Buy a Car and Car Insurance within My Budget in Dubai?

It is more important now, more than ever, to have a vehicle or some form of private transport in Dubai. Though the public transport system is well-maintained and highly efficient, there are some areas that you cannot reach by using the metro, and you might be in a hurry and cannot afford to take the bus. Most jobs also require you to have some form of transport, as you might live in an area that is not easily accessible and may not have a bus route.When it comes to buying a car, it depends on how much you can afford, and how much you’re willing to spend on petrol and maintenance costs. Bigger SUVs will require more petrol per week, whereas smaller sedans have smaller tanks, and require less petrol. An environmentally friendly option is to get a hybrid, but these are higher-end cars. Buying a car requires trips to various dealerships to see which model you are most comfortable with. For those with lower monthly incomes, it is possible to buy a second-hand car online; these are more affordable and are often in good condition and can be used for a number of years. Furthermore, it is mandatory by law to have motor insurance if you own a car in Dubai.

Types of Motor Insurance in Dubai:

There are a number of motor insurance policies in Dubai, but they fall into 2 broad categories:

Third-Party Liability Insurance: This type of insurance is the most basic and provides the lowest coverage; any damage to the other person’s car is provided (if the accident is your fault), and covers bodily injuries, but does not provide coverage for damage caused to your own car. This type of coverage satisfies the legal requirement and is useful for those with lower monthly incomes and less valuable cars; it’s a basic form of insurance where you will be protected, but you will have to pay out of your own pocket to fix the damages caused to your car.

Third-Party Liability with Fire and Theft Coverage: This insurance provides basic coverage and provides extra coverage for theft or fire damage. As the coverage is a little more comprehensive, the premiums will rise, but you are granted more financial protection.

Basic Comprehensive Insurance: This type of insurance is more expensive but useful for higher-end cars with higher repair costs. This insurance provides coverage to the third party's car and your own and includes coverage for accidents caused due to harsh weather conditions, theft, etc. This can include damages caused by lightning, storms, floods, and so on.

Comprehensive Insurance: This type of insurance plan includes add-ons to the basic comprehensive insurance plan. These add-ons can include free insurance outside the UAE, extra repairs, windscreen damage, and so on.

Premium Comprehensive Insurance: This is more expensive and covers almost all emergency situations, and includes all possible add-ons. This is recommended for sports cars and other luxury cars, as these are expensive to repair and maintain.

Best Motor Insurance Plans in Dubai

Trying to choose the best motor insurance plan in Dubai for you can be tricky, as there are a lot of factors to consider. This includes your driving history, the type of car you own, your monthly budget, etc. Dubai National Insurance and Reinsurance (DNIR) offers a variety of motor insurance plans, with personalized plans available for your choosing. DNIR offers a multitude of benefits, including agency repairs, coverage within UAE and Oman, coverage of personal effects in the vehicle, emergency medical expenses, and roadside assistance when your car breaks down. Furthermore, DNIR also provides insurance coverage for damage caused by harsh weather conditions, and by acts beyond one’s control, including riots and strikes. Here, DNIR offers comprehensive insurance coverage for lower costs, making it more affordable for you to protect your vehicle. With additional premiums, you can also include medical expenses for the passenger, and have additional hire-car benefits when your car is unavailable.

DNIR also has an interactive, easy-to-use website where you can apply for motor insurance policies in Dubai from the comfort of your own home. By simply filling out a few forms online, you can browse through multiple motor insurance policies and choose the best one for you.

Choosing a motor insurance plan is an important decision to make, and must not be taken lightly. It is recommended that you plan your monthly budget before deciding which plan to take as your budget will decide the premium you can pay for this insurance plan. The more expensive your car is, the more comprehensive insurance plan you require, simply because of the rising costs of repair for luxury and high-end cars. At the end of the day, driving a car can be risky and dangerous, and motor insurance will protect you from financial liabilities if you ever do get into a car accident. Though you may be a careful driver, other reckless drivers on the road can get you into an accident, making motor insurance that much more useful and necessary in today’s world.