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Top Benefits of Having Car Insurance

Top Benefits of Having Car Insurance

May 18, 2023

Risks are high when you are on the road as the chances of crashes and deaths have increased tremendously in recent years. Road accidents have become a major cause of death in the UAE and the intensity is increasing rapidly with each passing year. Numerous reasons account for road accidents such as rash driving, overspeeding, driving while intoxicated, etc

With accidents, come damage and loss - both to life and property. This is, in turn, followed by expenses which can prove to be quite high. For instance, even a small collision may cause great damage to a car’s external surface, lights, boot, etc.

How can you avoid such expenses? By investing in a good car insurance plan. In this article, let’s understand the top benefits of having car insurance.

How can you avoid such expenses? By investing in a good car insurance plan. In this article, let’s understand the top benefits of having car insurance.

Top Benefits of Car Insurance

1️⃣You fulfil a legal requirement
As per the UAE Road Transport Authority (RTA) Rules, having at least third-party liability car insurance is mandatory to drive your car. It will protect you against any damage or loss you cause to a third party or property when driving. You can also opt for a comprehensive policy that will give you an additional layer of protection by covering the costs you incur if your own car is damaged, stolen, etc.

If you are found driving on the roads of Dubai without car insurance, you can attract a fine of AED 500 along with black points on your driving licence.

2️⃣You get financial protection
The cost of purchasing a vehicle is high and so is the cost of repairing a vehicle. And, the situation becomes worse if you cause damage to a third party or property in an accident. If it is found that you are at fault, you are liable to pay for all the losses caused to the third party.

This is where car insurance steps in. Your insurer will offer you financial protection and cover the associated expenses - depending on the type of plan you buy.

●If you have a third-party liability-only policy, it will cover any damages caused to a third party or property because of your vehicle.

●If you have a comprehensive policy, it will cover all the damages caused to your vehicle during an accident, theft, etc. along with the damages caused to the third party/property.

For example: Aisha purchased comprehensive car insurance to cover her vehicle. Unfortunately, while driving to her hometown, she hit another car on the way. This led to severe damage to the third party’s car which needed big repairs. Since she has a comprehensive policy in hand, both the damages sustained by her car and the damages caused to the third party’s car will be covered under the policy.

3️⃣You can avoid the addition of black points to your licence
Black points are basically penalties. They are added to your licence if you’re found violating traffic rules. The maximum number of black points that your licence can attract is 24 while 2 is the minimum.

4️⃣You can customise your policy to meet your needs
You can customise your car insurance policy by including various add-ons like roadside assistance, rent-a-car facility, GCC coverage, off-road coverage, etc. to increase its coverage. Some add-ons come along with your policy as an inbuilt feature while others can be added by paying an additional premium.

For example: Raghu loves travelling. So, he purchased a comprehensive car insurance policy with a roadside assistance cover. While he was on a long vacation with his friends, his car stopped suddenly in the middle of the road. The roadside assistance cover helped him tackle the situation with ease. He contacted his insurer and a mechanic was sent to repair his car.

Riding a car involves a lot of risks even if you follow the rules. Car insurance is a safety net that will protect you financially against any car-related troubles like accidents, theft, etc. It helps you avoid legal repercussions and large out-of-pocket expenses.

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