What is Temporary Car Insurance in UAE & How to Apply?

According to the RTA law in UAE, it is mandatory to have car insurance. If anyone is caught driving a car without valid car insurance in UAE, AED 500 will be fined along with 4 black points added to the driver’s licence and the vehicle will be seized for 7 days. The charges and fines will be high in the case of driving an uninsured vehicle and hitting someone. Though car insurance protects the car owner financially during an accident or repair, it can be a financial burden for car owners who are going to drive the vehicle for a short time. In such circumstances, temporary car insurance can come to your rescue. A few insurance providers in the UAE offer Temporary Car Insurance which is also known as Short-Term Car Insurance. 

Temporary Car Insurance in UAE

Usually, a regular Comprehensive Car Insurance or Third-Party Car Insurance is valid for one year. While Temporary Car Insurance is provided for a limited time as per your choice. The protection offered by temporary car insurance is similar to the standard policy. It only differs with the validity and the price of the policy. 

Who can get Temporary Car Insurance?

Temporary Car Insurance offers similar coverage to standard insurance like personal accident cover, roadside assistance, agency repairs, and much more. But still, it’s not preferred by all the car owners. This is mostly opted by certain people like as listed below, 

• Rented a Car - This is for people who rent a car for a long time say a couple of months or more than that. People who want to stay in the UAE for a limited time and don’t want to take public transport or other transportation modes like cabs, rent a car and get the short-term insurance that provides coverage until their stay. 
• Travelling - If you are travelling to another city or country for a few days or months then you can get a temporary car insurance 
• If you are driving someone else’s car who did not insure their vehicle 
• Planning to resale - If you are planning to resell your car soon after the purchase then you can get short-term insurance in the meantime. 

Overall, if you are planning to drive a vehicle for a short time and don’t want to break the law, then you can get temporary insurance. 

What does Temporary Car Insurance NOT cover?

Similar to regular car insurance, the temporary car insurance does NOT cover certain factors like, 

• Driving under the influence of substances 
• Intentional damages 
• Damages during a race 
• Driving without a valid driver’s licence 

How to apply for Temporary Car Insurance in UAE?

The application process is similar to standard insurance. Follow the steps below

• Find the insurance provider who offers temporary or short term insurance in UAE
• Check the coverage provided along with the validity of the cover 
• Gather the required documents like driver’s licence, car details, etc and visit the provider  
• Read the terms and conditions of the policy 
• Purchase the right policy after comparing the cost and benefits offered 

Is Temporary Car Insurance better than regular Insurance?

The coverage provided on the temporary car insurance is similar to regular car insurance. The only difference is the cost of the policy and the validity. 

Temporary car insurance or short term insurance is provided for a few days or months as per the buyer’s requirement. Whereas the standard car insurance in UAE both third-party and comprehensive insurances are valid for a year. Depending on the policy coverage you might be paying the same price for a short time that you will be paying for on a regular policy. Hence, when the cost is considered standard car insurance is only recommended. 

Temporary Car Insurance can be beneficial only for people who are planning to drive a vehicle in the UAE for the short term. 

Also, it is important to note that in the UAE the temporary car insurance or short term car insurance is not provided by all the providers. It is available only at a few insurance providers. Therefore, you need to do a lot of research to find temporary insurance coverage and opt for it due to the limited options.