Car insurance is mandatory in Dubai. There are five types of insurance policies available:
Third party Liability: This is the most basic form of coverage and simply protects the vehicle owner against claims by third party drivers, passengers or other road users.
Third party Liability (with Theft or Fire): Same provisions as above but with the added benefit of protection against theft of your vehicle or fire damage.
Basic Comprehensive: This basic policy protects you and others in the case of accidental collisions, theft or fire damage. Insurance firms are legally obliged to offer this level of coverage at a price that is no more than 5 per cent of the value of your vehicle.
Comprehensive: This policy provides extended coverage over and above the basic level, including loss of personal items through burglary. This policy is only valid for vehicles that are less than seven years of age.
Premium Comprehensive: This level of coverage is typically required for prestige vehicles and is also a prerequisite for younger drivers (aged 25 and under). It offers maximum coverage for policy holders but is also the most expensive car insurance available.