People portray their craze for automobiles in different ways. While some prefer to get their hands on the latest models, others might be more inclined towards buying classic cars. Another class of people showcase their love for automobiles by maintaining entire collections. While huge car collections can be a luxury, it takes some extra effort to handle them efficiently. For instance, keeping track of insurance renewal dates of multiple cars can be difficult, and failure to do it on time can result in fines.
Fortunately, a select type, ‘multi-car insurance’ can save car owners from this hassle. We will learn all about multi-car insurance and its plans to see how it can be beneficial for car owners.
What is Multi-Car Insurance in the UAE
The UAE law makes it obligatory for all car owners within the country to have vehicle insurance. People can easily find many companies offering car insurance in Dubai, Abu Dhabi and other Emirates. There are different types of car insurance, and people can choose the type best suited to their needs.
Among the many types, one is multi-car insurance. As the name suggests, multi-car insurance covers different vehicles under a single insurance plan. This can be a viable option for people who own multiple vehicles and for car rental services within the region. It can be a viable option to insure luxury and sports cars in the UAE for owners or businesses who own multiple luxury cars.
The multi-car insurance deals and policies may differ depending on the insurance provider chosen. However, with the many benefits, it can be a considerable option for individuals and businesses with multiple vehicles at their disposal.
Advantages of Multi-Car Insurance
If any of the vehicles insured under multi-car insurance policy gets involved in an accident, the process of filing an insurance claim in the UAE is the same as other types. However, this insurance type comes with several other benefits which are as follows:
- Great Potential Savings – Many Insurance companies offer deals and discounts when you opt for multi car insurance. Additionally, the overall premium rate may also become lower – providing great room for saving.
- Easy Documentation – As multiple vehicles are insured under a single plan, less documentation is required. It also makes it easier for record keeping.
- No-Claim Bonus – A great opportunity to save some extra cash with individual no-claim on each car.
- Same Renewal dates – As most vehicles have the same insurance renewal dates, there is no need to mark multiple dates and file separately for different vehicles.
- Coverage customisation – In most cases, customers can customise the coverage policies as per their requirements.
Disadvantages of Multi-Car Insurance
Many car insurance companies in Abu Dhabi, Dubai and other Emirates offer multi-car insurance because of the many advantages. However, there are some downsides as well that you should know. Listed below are some of the disadvantages of multi-car insurance:
- Increased premium because of risky drivers – If risky drivers are included in your insurance policy, the premium rates may be high.
- High financial burden – The discount and deals usually lower the overall premium rates in multi-car insurance. However, customers have to pay a combined premium on all vehicles at the time of purchasing policy. This high amount could put a financial burden on policy owners.
Coverage offered by Multi-car Insurance Plans
Depending on the type of policy, the coverage plan provides car insurance for animal damage, among several other damages. Multi-car insurance, in addition to standard coverage, offers some other benefits as well.
Detailed below are the coverages included in multi-car insurance:
SHARED COVERAGE
- Provides coverage for uninsured or underinsured drivers
- Reimbursement for rental vehicles
- Covers liability towards other people
SEPARATE COVERAGE FOR EACH VEHICLE
- Covers all bases, including personal damage, car theft, and damage caused by natural and man-made disasters
- Collision protection benefits
- Assist with roadside emergencies
ADD-ONS FOR MULTIPLE CARS COVERED UNDER ONE PLAN
- Accident coverage
- Coverage for engine breakdown
- Windscreen-related coverage
- Geographical coverage
- No depreciation cover
- Cover for no-claim bonus
- Replacement keys coverage
- Coverage for passenger accidents
The benefits and add-ons may vary depending on the insurance type and company. For instance, car insurance for seasonal car damage in Dubai is only covered under comprehensive insurance policies. Discuss the details with the service providers before finalising the deal. Moreover, knowing the difference between third-party insurance and comprehensive insurance can help you make a better call.
Factors Affecting the Price of Multi-Car Insurance
Apart from the general factors considered in all insurance policies, there are a few things that can affect the price of multi-car insurance. Let’s go through them in detail:
REGISTERED DRIVER’S DRIVING RECORD
It is a standard insurance practice to check driver records before finalising the policy. With multi-car insurance, all registered drivers’ driving records are checked. If any of the policyholders is found breaching traffic rules in the UAE, the insurance rates of all insured parties increase.
MODIFICATIONS IN CARS
Insurance companies also monitor any modifications made to the vehicles. The insurance rates may also rise if any of the insured vehicles under multi-car insurance is modified to look good or if any additional feature is added. Additionally, it is important to note that the increased rates apply to all vehicles under the policy.
The Age of Drivers and Cars
The age of the vehicles and registered drivers can also affect the insurance rates. Individuals, 25 years or younger are generally considered high-risk drivers. Similarly, old cars are more prone to damage and breakdown. Therefore, if any of the policyholders is a young driver or a car is old, the insurance rate may also be increased accordingly.
This is everything about multi-car insurance in the UAE. This insurance type can be a viable option for people who own multiple cars or for car rental service owners. Its many benefits can help them save money, a fair amount of stress and additional paperwork.
It is better to do your research and take quotes from several services before getting the policy. Moreover, policyholders can also go through these UAE driving rules and regulations FAQs to get answers to all driving-related questions.
For car financing and insurance, dubizzle can be a perfect choice. Check out the finance and insurance service at dubizzle cars and avail the many benefits that follow.
Furthermore, if you are looking to expand your car collection, pre-owned vehicles are a considerable option. Browse through these used cars for sale in the UAE and select from a wide variety of vehicles listed.
Stay tuned to dubizzle’s auto blog for information about different types of car insurance and more.
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