If you have encountered rain and hail in the UAE, whether at home or while driving, you might be concerned about the potential damage caused by the ice falling from the sky.
Now, the question arises: Does your insurance policy cover any necessary car body repairs? The answer is yes, but as with any insurance matter, certain details require careful consideration and verification.
Comprehensive insurance
There are two options available when it comes to insurance – comprehensive insurance and third-party insurance. Opting for comprehensive insurance provides coverage for natural disasters. This means that any damage caused by floods, storms, earthquakes, and other similar events will be covered. It is important to note that this coverage applies to both car and home insurance policies.
However, it is always advisable to verify with your insurance agent whether these damages are covered. If they are not covered, it is crucial to determine the additional amount required to obtain coverage for natural disasters.
Furthermore, it is essential to consult your insurance agent if your vehicle is over 10 years old, as comprehensive insurance may not be available for such cases.
How much does one need to pay?
When it comes to car insurance, individuals typically pay around two to three percent of the car’s value, with minimum premiums set by the UAE Central Bank. These minimum premiums amount to Dh1,300 for saloon vehicles and Dh2,000 for SUV vehicles. Additionally, there is a 20 percent discount available for those with a no-claim history and approvals from the insurer.
After the first year, the standard depreciation rate is 15 percent from the car’s last value.
During the winter months in the UAE, it is inevitable to experience a few days or weeks of extreme weather, including heavy rains and hail storms. In such cases, if cars are submerged in water, the damage to the engine and computer system can be extensive. This is precisely why having insurance coverage is highly beneficial.
When it comes to home insurance, the coverage depends on the specific items you wish to protect.
The cost of insurance coverage varies depending on the value of the items you want to protect. This not only includes your house but also the assets you possess. In some cases, you may need to provide an invoice as proof of value, while for antique items, it may be necessary to have them appraised by valuation companies.
When it comes to home insurance, the premium you pay is typically a smaller percentage of the insured item’s value compared to auto insurance. While auto insurance premiums usually range from 2 to 3 percent, home insurance premiums can be as low as 1 percent. The specific percentage depends on the items you wish to insure.
What is third-party insurance?
Further on, let’s delve into the distinction between comprehensive and third-party insurance. While comprehensive insurance provides coverage for one’s possessions, third-party insurance solely covers damages inflicted upon another party.
According to UAE law, third-party insurance is obligatory to ensure the safety of individuals. To illustrate, if I possess third-party insurance and happen to collide with another vehicle during a rainy day, the resulting damages to the other car will be covered. However, any harm incurred by my vehicle will not be covered.
Is comprehensive insurance worth it?
During periods of severe weather conditions, a UAE-based automotive expert frequently encounters a range of car-related grievances, including engine damage, body repairs, and electrical system malfunctions. The cost of repairs can greatly differ depending on the type of vehicle owned, whether it is a premium or mid-range model, as well as the severity of the damage. However, it is highly advisable to obtain comprehensive insurance coverage to ensure optimal protection.
The cost of repairing panels will vary depending on the number of panels that need to be fixed.
In a car, the roof, bonnet, and trunk are the largest panels. For instance, if you only need to repair the bonnet of a passenger car, the cost of removing dents and repainting it can amount to approximately Dh450. However, in high-end vehicles, even minor damages may necessitate replacing the entire panel, resulting in exorbitant costs.
When considering the potential expenses that cars or homeowners may face due to damage caused by natural events, it is always wise to opt for comprehensive coverage. However, it is crucial to be aware of whether natural disasters are included in the insurance package.
Also Read: Rain-damaged car in Dubai? Dubai Police can help you get your insurance claim certified online