Total Loss

Total loss occurs when the cost to repair a vehicle exceeds its value. In such cases, the insurer may offer compensation equivalent to the insured declared value.

Comprehensive vs. Third-Party

This term contrasts the two main types of car insurance in Dubai. While comprehensive insurance covers extensive damages, third-party insurance is the minimum legal requirement, offering basic coverage for other parties involved in an accident.

Insurer

The insurer is the company that provides the insurance policy. In Dubai, various insurance providers offer car insurance with different types of coverage and pricing.

Add-ons

Add-ons are additional coverage options that can be added to your base insurance policy. Common add-ons include engine protection, key replacement, and loss of personal belongings.

Act of God

An “Act of God” refers to natural events like earthquakes, floods, or storms that are not caused by human actions. Insurance policies may or may not cover such events.

Underwriting

Underwriting is the process of evaluating a car insurance application. Insurers assess the risks involved based on the applicant’s profile, car details, and driving history.

Collision Coverage

Collision coverage protects against damages to your own vehicle resulting from a collision, regardless of who is at fault. This coverage is optional but recommended for those with expensive cars.

Excess

Excess is similar to a deductible and refers to the portion of the claim the policyholder is responsible for paying. This amount is subtracted from the total claim payout.
Chat Icon