Would you believe us if we say UAE in total has 3.5 million cars on the road? Well, you have to because these are the general stats according to trusted reports. In the Emirates, cars aren’t just an essential commodity used to travel; it’s a lifestyle, and if you are running a garage or dealership in Dubai, motor trade insurance is more crucial than you might understand.
Unlike personal car insurance, trade motor insurance is specifically meant to protect businesses that handle, repair, and sell vehicles. Still, have your queries? Well, in this blog, we will cover the basics of third-party car insurance in Dubai, why it’s essential what it covers, and how you can select the right policy to secure your business.
What is Motor Trade Insurance?
Unlike conventional auto insurance, motor trade insurance protects individuals and businesses involved in the automotive industry. Whether you run a car dealership, repair garage, or valet service, this insurance policy can provide coverage for risks associated with working on, driving, or holding customers’ vehicles.
The difference between traditional vehicle insurance and motor trade insurance is the latter one keeps your business secure. Motor trade insurance encompasses a broader range of coverage specifically customized according to the unique risks in the motor industry, which makes it ideal for garage owners and dealerships in Dubai.
Why is Motor Trade Insurance Essential in Dubai?
In Dubai, the car culture is vast, with high-value vehicles, a fast-paced environment, and a skyrocketing demand for premium services. So, for businesses dealing in automotive matters, motor trade insurance isn’t just an option, but a necessity. Here’s why-
- High-Value Cars and Expensive Repair: For one, Dubai is home to a wide range of luxury and sports cars, and each model requires specialized care and costly repairs. If you are a business handling customer vehicles, damaging the high-end cars, even by accident can result in significant expenses. However, motor insurance in Dubai can protect you from these costly mishaps by covering damages incurred while a car is in your possession.
- Legal Compliance: If you have a business in the automotive sector, having motor trade insurance is a sign of compliance. Without it, your business might not be adhering to local regulations, which can further lead to penalties, fines, or even the suspension of your trade license.
- Protection Against Liability: From accidental damages to injuries, there’s no denying that running a garage or dealership comes with its own set of risks. To avert these risks, motor insurance in Dubai can offer garage owners liability coverage. So, if an accident happens on your premises, or if a car is damaged, the insurance will cover the costs rather than your business footing the bill.
- Business Continuity and Customer Trust: By investing in car insurance in Dubai for your garage business, you are showcasing your commitment to customer satisfaction and trust. Clients want to know their vehicles are in safe hands, and being fully insured makes you a credible and trustworthy way to attract more such customers.
Types of Motor Trade Insurance Coverage
There isn’t a one-size-fits-all approach to motor trade insurance. Various policies are tailored to different needs, so let’s explore the main types of coverage you can choose from in Dubai.
#1 Road Risk Insurance
If you or your employees need to drive customer cars for testing, delivery, or valet services, road risk insurance is essential. This policy covers damages that could occur while driving a customer’s vehicle on public roads.
- Third-Party Only– Covers damages or injuries to other vehicles and pedestrians.
- Third-Party Fire and Theft– Includes the above plus protection against fire damage and theft.
- Comprehensive– Provides full coverage for third parties, fire, theft, and damages to the vehicle you are driving. For a business that involves frequent test drives or pick-up and delivery, a comprehensive road risk policy is highly recommended. It doesn’t just protect the customer’s vehicle, but also any damages to your garage vehicle in an accident.
#2 Public and Employer’s Liability Insurance
For garages, the risk of accidents on the premises can’t be ignored. Whether it’s a customer tripping in the waiting area or an employee injured on the job, liability insurance protects your business from these financial burdens.
- Public Liability Insurance- Protects against claims by members of the public who may get injured or have their property damaged on your premises.
- Employer’s Liability Insurance- This policy covers medical expenses and potential legal costs if an employee is injured while working. Liability insurance is essential in a customer-facing business like a garage, where accidents can happen at any time.
#3 Combined Motor Trade Insurance
A combined motor trade insurance policy merges several types of coverage into one comprehensive package. This can include road risks, liability insurance, and even premises protection. For larger operations that deal with high volumes of cars, a combined policy is a cost-effective way to secure all areas of your business.
The best part about combined motor trade insurance is it is highly customizable, so you can customize the coverage according to your business needs. From road risks to protecting your premises and equipment, the insurance has everything covered.
Key Considerations When Selecting Motor Trade Insurance
If you open your browser and search car insurance online, there would be an overwhelming number of options on your screen. However, if you want to select the right motor insurance in Dubai for your garage or car dealership, here are some factors to keep in mind-
1. Business Size and Scope of Operations
Are you a small repair garage or a large dealership? The scope of your business significantly affects the type of coverage you need. Smaller businesses with fewer employees and vehicles may find a basic road risk policy sufficient, while larger businesses should consider a more comprehensive or combined insurance policy.
2. Types of Vehicles Handled
Do you handle high-value sports cars, commercial trucks, or everyday vehicles? Insurance for high-value vehicles might be more expensive but provides necessary protection given the potential repair costs of luxury cars.
3. Premises and Equipment Coverage
A busy garage likely has significant assets beyond vehicles, like specialized tools, diagnostic equipment, and machinery. If this equipment were to be damaged in a fire or theft, the right motor trade insurance policy can help cover replacement costs and minimize downtime.
Conclusion
With the right motor trade insurance, you can protect your assets, build trust with clients, and ensure the long-term success of your business. Looking for the best motor insurance in UAE or comprehensive car insurance for your garage? Reach out to the insurance experts at UIB Group today. Since its inception in 1956, the firm has had an unscathed reputation as an insurance provider and was recognized as the world’s 5th largest insurance broker in 2017. Need more information or want a quote for your motor trade insurance in Dubai? Connect with the team at UIB Group now!
Disclaimer
This article provides only an overview of the subject matter and is not intended to be exhaustive in any way. The content is for general information only, and should not be construed as legal advice on any subject matter. It is therefore, not limited or warranted in any way.
For more specific advices relating to your insurance needs, please contact us directly on enquiry@uibgulf.com.
