Top 5 car insurance policy exclusions to look out for

Reading car insurance policy documents isn’t exactly what most people would deem to be a fun past time. While insurance jargon can seem like a foreign language to some, getting acquainted with the main elements of your policy will help ensure that you are not met with any nasty surprises further down the line.

Chief among the main sections of any Dubai car insurance policy is the “exclusions” section, which details what your motor plan won’t cover. While car insurance coverage benefits can vary quite significantly between different plans, there are several key exclusions that will apply to virtually all policies in the Lion City.

Read on to learn more about the most common car insurance exclusions in Dubai today.

What level of car insurance coverage do you currently have?

As you are probably aware, it is legally mandatory for all drivers in Dubai to have car insurance coverage. However, the law only requires motor insurance policies to cover bodily damage or death to other parties.

There are, however, plans that go above and beyond the legal minimum, offering more extensive coverage for scenarios like fire, theft, and protection of the driver’s own vehicle in the event of an accident.

We’ve covered this in detail in one of our previous blog posts, but here’s a table highlighting the main differences between each of the different levels of car insurance in Dubai:

As you can gather from the above benefits comparison table, what plans cover and won’t cover will vary significantly depending on the level of coverage you have. Exclusions can vary from plan to plan, but if you don’t want damages to your own car to be excluded from your policy, we would highly advise getting comprehensive car insurance.

5 most common Dubai car insurance policy exclusions

When it comes to knowing what your car insurance policy won’t cover, it’s always best to study your policy document. If you haven’t bought a plan yet, we advise seeking the help of a reputed broker so that you can clarify all policy inclusions and exclusions before purchasing motor coverage. Generally speaking, however, here are the main exclusions to watch out for:

1. Drink or drug driving

Not only is driving under the influence against the law, damage caused as a result of drunken/drug driving is also one of the most common policy exclusions in virtually all countries. Some insurers will make this exclusion explicitly clear in the policy’s Terms & Conditions, while others will state that any illegal acts committed while driving will invalidate your claim.

2. Using your private car for commercial purposes

Operating a private vehicle for commercial purposes – e.g. as a car for hire, man with a van, etc. – without a proper license or the right type of commercial vehicle insurance is illegal. One of the only exceptions to this particular rule is if you are using your private car to drive to work. Similar to private car insurance, there are two main types of commercial auto insurance in Dubai: third party and comprehensive.

3. Driving without a valid license

If you’re driving with a expired, terminated, or suspended license; or allow another person to drive your vehicle without a license, in virtually all cases you will see claims related to these scenarios denied. This is fair enough; a terminated/suspended driver is deemed unfit to drive on roads.

4. Natural calamities

Natural calamities, also commonly known as “Acts of God”, describe any unforeseen/unpreventable natural event or disaster – e.g.:

• Floods
• Lightning
• Fire
• Strong winds

Third party car insurance plans will in most cases not cover damages caused by natural calamities, but comprehensive motor plans can. It’s important, however, to double check your policy wording to clarify exactly what types of natural disasters are covered.

5. Vandalism and theft

Again, basic third party car insurance plans likely won’t provide cover for things like vandalism or theft. While the crime rate in Dubai is relatively low, vandalism and theft do happen, and can result in extremely high out of pocket costs – especially if you have an expensive vehicle. It’s therefore a good idea to consider policies that cover vandalism and theft, namely third party fire & theft insurance, and comprehensive car insurance.

Get in touch with a car insurance expert

Understanding your car insurance policy exclusions can be made easier if you take the time to study your plan documentation, but much, much easier if you engage the help of an experienced insurance broker, like Johnedwardkelly Dubai. Get in touch with us today to get a free quote, or some helpful advice.