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Get vehicle cover for protection against untoward incidents
As in almost all parts of the world, auto insurance (or car, motor, vehicle insurance) is mandatory in the UAE, where vehicle registration and renewal cannot proceed without such a requirement. Motor insurance lends financial protection against vehicle theft, damage due to accidents, and any related liability, which largely translates to peace of mind for vehicle owners.
There are many insurance companies available in the country, each with differing coverage and rates. However, the two most common policies offered are comprehensive insurance and third party liability (TPL) which is considered cheap car insurance.
The former generally covers loss/damage to one’s own vehicle due to accident, fire, theft, burglary, vandalism, and injury/death to a third party, or damage to a third party’s property. It even provides off-road, Oman and GCC coverage, and a replacement car and roadside assistance, but it does not apply to old cars.
TPL, on the other hand, pays for the death/injury to a third party including damage to a third party’s property. However, it does not insure the car owner and his vehicle. Insurance firms also offer optional covers to suit one’s needs. Car owners are, thus, advised to conduct due diligence when getting their vehicles insured to get maximum protection from their policy.
Insurance premiums basically depend on one’s driving experience, and the vehicle’s age, model, and value. That will soon change though if the UAE’s plan to introduce a law that promotes risk-based insurance pushes through. With this scheme, the driver’s age and driving history would be taken into consideration, which could also mean not being granted insurance cover at all.
• Vehicle insurance serves as financial protection
• Comprehensive insurance does not apply to old cars
• Third party liability offers limited scope of protection which is cheap car insurance
Source: Ellen Joyce Soriano, Special to Classifieds, The writer is a freelancer