Even though car insurance is mandatory for all Dubai drivers, but not all insurance plans offer the same benefits and features. While comprehensive coverage covers almost everything and offers a lot more benefits but is more expensive, the third party liability insurance covers only the damage done to the other’s car.
According to a survey conducted by ServiceMarket and QIC Insured which includes 45 thousand cars, almost 20% of the cars in Dubai are under-insured.
What Makes Your Car Under-Insured?
If your car is eligible for the comprehensive plan but still insured under a third-party liability policy, this means your car is under-insured. Most new cars are eligible for the comprehensive plan. The insurance companies in Dubai usually offer a comprehensive insurance policy to car models from 2009 and later. Even though older cars can also get a comprehensive plan but you will find it difficult to find a company that agrees to offer a comprehensive plan.
According to the survey, the two most under-insured cars in Dubai are Toyota Land Cruiser with 49% and Nissan Patrol with 58% that is above the average of 20%. Both cars are high-end larger cars that show drivers with expensive cars are taking a huge risk. For such cars, the cost of repair is very high and often unaffordable if you don’t have a comprehensive plan.
Simply put, if your car is of the 2009 model or later but still insured by third party liability policy, you are at a risk of huge financial loss in the event of an unfortunate accident. The third party liability policy will only cover for the damage done to other vehicle or property and you have to pay for your own repair which is very expensive for new cars.
Make sure to have a comprehensive insurance policy for risk-free driving in the Dubai.
