Insuring Used Cars in Dubai - Everything You Need to Know
When purchasing a used car in Dubai, it is essential to consider the insurance aspect to protect yourself financially against unforeseen circumstances. Insuring a used or second-hand car is almost the same as insuring a new one just with a few variables to keep in mind. In this article we'll walk you through everything you need to know before insuring a used car in Dubai.
Types of Car Insurance Policies Available for Used Cars In Dubai
It is mandatory to have car insurance in Dubai even for second-hand cars. When it comes to the types of plans to choose from, there are two coverage options:
a. Third-Party Liability Insurance: The minimum requirement for all vehicles, it covers any damage caused to a third party, such as injuries or property damage, in the event of an accident. However, it does not cover any damages to your own vehicle. This may be an ideal choice for a used or a second-hand vehicle since the plans fall in a more affordable range.
b. Comprehensive Insurance: This is an extensive coverage option that includes both third-party liability coverage and coverage for damages to your own vehicle. Comprehensive car insurance protects against accidents, theft, fire, natural disasters, and other unforeseen events. This is recommended for high end cars with higher market values.
List of documents required to insure a used car in Dubai
You may also want to take a look at the list of documents you will need to insure your used car in Dubai:
Valid Emirates ID
Valid driver's license
Vehicle registration card (Mulkiya)
Previous insurance policy documents (if applicable)
No-claims certificate (if applicable)
NOTE: In Dubai and in any other Emirate, it is mandatory to have a UAE issued driving license or you must have a residence permit for registering or insuring a used car.
Once you’ve thoroughly understood the type of plan that’s suitable for your car, it is important to understand other aspects of purchasing insurance for a second-hand car in Dubai. You may need to consider the following: