Vehicles are important assets that are at greater risk of accidents and third-party damages. Therefore, all the vehicles on the road in the UAE are required to be insured including commercial vehicles. That said, the insurance covers all types of commercial vehicles including cars used as mass transit transport.
Several companies in the UAE offer commercial vehicle insurance facilities at different rates. However, before you opt for any of the policies, it is necessary to learn all about commercial vehicle insurance policies.
Here we have mentioned all the details regarding commercial auto insurance in the UAE, its types and benefits.
What is Commercial Auto Insurance
Commercial auto insurance covers the financial liability of the vehicles in case of damages caused by accidents and other mishaps. The commercial auto insurance plan is specially designed for vehicles that are excluded from private car insurance.
That said, commercial auto insurance in the UAE covers the following vehicle types.
- Light Transport Vehicles (LTV) used as company cars or taxis
- Heavy Transport Vehicles (HTV) like trucks, vans, fork lifters and construction vehicles
- Two-wheelers used as delivery vehicles
Types of Commercial Auto Insurance in the UAE
The car insurance companies in Abu Dhabi and other Emirates offer different types of commercial auto insurance. The following are the commonly offered commercial auto insurance in the region.
Third-Party Liability Insurance
Third-party commercial car insurance is the basic level of insurance. It covers damages claimed by third-party in which the insured driver is faulty. However, injuries or medical bills of the insured driver are excluded from the third-party liability insurance.
Comprehensive Insurance
Commercial comprehensive insurance is similar to that private comprehensive car insurance. It covers all the damages caused by accident or theft, emergency treatment of drivers and third-party liabilities. Moreover, in case of any legal issues, comprehensive car insurance will also pay the legal fee for the driver.
This may also cover the total loss of the car in case of an accident or theft. Alongside this, it also covers damages caused by natural disasters or animals.
For more information regarding insurance coverage of naturally damaged cars, read our blog on does my car insurance covers seasonal car damage.
Who Can Buy Commercial Car Insurance
Residents of UAE with relevant citizenship can avail of commercial car insurance. Alongside, registered businesses in the UAE with vehicles used for any kind of commercial activity can also use commercial insurance. However, you must have valid document proof of your citizenship or business.
If you cater to the eligibility criteria, the company may or may not ask for the following documents.
- Car certificate and registration number
- Essential car details like car model, chassis number or engine number
- Company’s trade licence
- Driving licence
- Valid passport or Emirates ID
Commercial Insurance Claim Process
Mentioned below are the steps to claim commercial auto insurance in the UAE.
- Provide all the details of the accident to the insurance provider
- Acquire a police report of the accident from the concerned department
- Submit the claim application along with the necessary documents
- Drive your car to the insurance provider’s registered garage where an inspector will inspect the car’s damages
- After the approval of the inspector, the garage will repair the car as instructed
Documents Required
The insurance provider may ask for the following set of documents to process the insurance claim.
- Police report
- Drivers’ licence
- Policy documents
- Accident details
Conditions of Insurance Claim Rejection
The insurance provider might reject the claim, in case of the following conditions.
- Damage caused to the vehicle purposely
- The accident was caused when using the vehicle for illegal purposes
- Using commercial vehicles to transport humans illegally
- Wear and tear caused over time
- Injuries of passengers
- The driver was under any kind of influence by drugs or alcohol
- Damages caused by a radioactive substance
- Accidents beyond the geographical jurisdiction of the Emirate
How Much Does Commercial Auto Insurance Cost
The commercial auto insurance cost in the UAE varies from vehicle to vehicle and provider to provider. Moreover, it also depends upon multiple other factors like the type of insurance, vehicle’s model year, driver’s age and others.
The right-hand thumb rule to roughly estimate car insurance is by calculating its net value. The premium of commercial car insurance is generally 1.25% to 3% of the total car value. However, it is only for rough estimation and the actual might vary from this one. if you find these rates expensive, opt for the finance and insurance services at dubizzle cars for competitive rates.
FAQs
Which types of vehicles are included in commercial auto insurance?
Commercial auto insurance covers all types of vehicles that are used for commercial activities by businesses or as part of mass transit transportation.
Will commercial car insurance cover my taxi?
Yes, commercial car insurance covers LTVs for commercial purposes like taxis or online cabs.
Can I include additional facilities in the commercial comprehensive car insurance?
Yes, you can ask the insurance provider to add more features to the comprehensive car insurance. These features can be roadside assistance, car accessories coverage, zero depreciation cover and consumable covers for the vehicle.
This was all about commercial auto insurance in the UAE. Commercial vehicles are an important part of a business’s supply chain that can ease daily operations. However, the cost of commercial vehicles is generally higher than daily-use vehicles.
If you are looking for commercial vehicles on a budget, browse through these used heavy vehicles for sale in the UAE and purchase an appropriate vehicle for your business.
Stay tuned to dubizzle’s auto blog for more information on affordable commercial auto insurance in the UAE.
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