3 Things to Consider When Buying Car Insurance for a Pre-Owned Car in the UAE
3 min read 25 May 2022, 08:21 PM ISTThird Party Car Insurance covers any liability arising from damage done to a third-party car, person, or property. Comprehensive car insurance as the name suggests, is a more inclusive plan that covers damages to your vehicle caused due to accidents.
PremiumDriving a second-hand car can be a wonderful experience if you have the right car, and the right insurance. However, getting the right insurance can be quite challenging as well. That’s because there are many factors that need to be considered when you buy car insurance for a pre-owned vehicle in the UAE. The good news is that buying car insurance for a used car isn’t any more difficult than it was five or even ten years ago. But there are several things you need to keep in mind before purchasing car insurance for your pre-owned vehicle. This blog article has everything you need to know about buying car insurance for a pre-owned car in the UAE.
Types of car insurance in the UAE
There are two primary types of car insurance in the UAE - Third Party Car Insurance and Comprehensive Car Insurance. Car insurance is mandated by law in the UAE. Third Party Car Insurance covers any liability arising from damage done to a third-party car, person, or property. Comprehensive car insurance as the name suggests, is a more inclusive plan that covers damages to your vehicle caused due to accidents and also protects against any third party liability caused to a person or property. . This also includes losses faced by you as a result of theft, natural disasters and even gives you the option of choosing add-on covers for car accessories and more.
Consult with a car insurance broker
Before you buy car insurance for a used car, it’s important to consult with an insurance broker. That person will be able to tell you which company has the best deal for your needs. An Insurance broker can also help you understand what coverages and rates are available for your specific situation. The brokerage may also be able to recommend you a basic policy that will suit your needs without much hassle. This is great if you don’t know anything about the ins and outs of buying car insurance in the UAE.
Check for transfer of car insurance
If you are purchasing a used car, you should make sure that the current car insurance policy is transferable to your new vehicle. The registration & full ownership of the car will only be transferred to new owner only after the insurance transfer has been completed. But you should note that car insurance can only be transferrable if the policy has 7 months or more tenure remaining to be completed. If this is not the case, then you will have to buy a fresh car insurance for your vehicle
In case of a no-claim bonus, it cannot be transferred to new owner. No claim bonus is a reward for the car driver /owner who has not filed a claim in the policy year.
Documents needed for buying car insurance for a pre-owned car
One of the first things you will need to do is provide the car’s make and model, as well as its registration number. You will also need to provide your name and address. In addition to these documents, you will need two insurance certificates from the seller, one that details an accident history report for the car and another one from a company that specializes in second-hand cars. To sum it up, here is the list of documents you need to have to get car insurance for your pre-owned car:
-Proof of existing car insurance policy
-A NOC or no objection certificate from the owner
-Car insurance transfer application form
-Proof of ownership of the new owner
-Original registration certificate and documents of the car
-Car inspection report
-The bottom line
In order to determine how much your policy costs, you need to do a few things before purchasing car insurance.’ First, find out what kind of coverage and add-on covers you will get with the policy. Second, find out what the deductible is on that particular policy. Finally ensure that you have all the documents necessary for buying or transferring the pre-owned vehicle in your name. a.
Thankfully, you can avoid these pitfalls by consulting with a car insurance broker, who can guide you to make the best insurance choice for your pre-owned car. To learn more about this process, visit the Gargash Insurance website today.
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