Car Insurance Rules Every Driver in Dubai Should Know

Car insurance in Dubai is important for owning and driving a vehicle in the UAE. With mandatory rules and specific regulations, however, you should know the basics about fines and ensure you are secure on the road. Whether you’re getting your first policy or renewing an existing one, understanding the key rules can make the process easier.

Read on to find out the basic rules related to motor insurance in Dubai and drive with confidence and peace of mind.

Rule 1 — Car Insurance is Mandatory

Car insurance is mandatory by law in Dubai and across the UAE. In the absence of a policy, you can face grave legal consequences

⦁ Fine of AED 500
⦁ 4 black points against the driving licence
⦁ Inability to renew Mulkiya
⦁ Vehicle impoundment for up to 7 days

Note – that third-party car insurance in Dubai, UAE is mandatory. However, for holistic coverage, you should go for comprehensive motor insurance. Also, you cannot insure multiple vehicles under one insurance policy.

Rule 2 – Insurance for Personal Vehicles and Commercial Vehicles is Different

Insurance is separate for personal vehicles and commercial vehicles. You need motor insurance to cover individual vehicles, while businesses need commercial vehicle insurance for a fleet of commercial vehicles. You cannot use your personal car for commercial purposes.

In case something happens to your personal vehicle while you use it for a commercial purpose, your policy won’t cover the losses or damages.

Rule 3 – Renew Your Car Insurance on Time to Take Advantage of Accumulated Benefits

You should renew your auto insurance in Dubai, UAE, on time. This insurance covers your vehicle for 13 months, of which one month is a grace period in which you can renew your policy. Ideally, you should renew it within this period to avoid loss of coverage and fines.

To save yourself from late renewals, set timely reminders. If you buy car insurance from Policybazaar UAE, you won’t have to worry about such reminders, you’ll automatically get prompts for renewal once you’re near the date.

Rule 4 – Repair Types

There are three types of repairs under insurance in Dubai: agency, premium garage and garage. There are specific rules governing the various kinds of repairs

• ⦁ For the first 2 years of owning a new car, you can get it repaired at an authorised agency.
• ⦁ Starting from the 3rd year, you need the provider’s approval. The eligibility depends on the number of claims you have made.
• ⦁ Once the vehicle is three years or older, it will be repaired at the premium garages listed by the insurer. Note that once the car gets repaired in premium garages, you can no longer get it repaired at authorised agencies.
• ⦁ From the seventh year onwards, you need approval to get your vehicle repaired at premium garages.
• ⦁ If you don’t get the approval, you will need to get your car repaired at local garages.

Rule 5 – Understand the Claim Process

In the event of an accident, you must first file a police report. This report is mandatory to initiate the claim process. Once you file the complaint, immediately inform the provider about the accident. It will help you through the entire claim process thereafter

Rule 6 – Important for Car Registration

You need to renew your car registration annually. However, you must renew your insurance policy in advance, as your Mulkiya includes your renewed policy number. You can renew your Mulkiya within 7 working days of activating your insurance. Please note that this information is specific to Dubai. Actual requirements may vary by Emirate.

Rule 7 – Orange Card

If you are a frequent traveller to Oman, you should opt for comprehensive car insurance in Dubai. You can include the Oman extension cover as an add-on to your policy. It will cover damage to the insured vehicle in Oman.

However, it will not cover third-party liabilities. For that, you need to buy an Orange card separately.
To Conclude Understanding the insurance rules in Dubai is essential for every driver. It helps you stay legal and protected on the road. Knowing the rules makes it easier to avoid fines and legal consequences.

Make sure to renew your policy on time and select the right plan for your needs.