Are Commercial Motor Vehicles Covered when Used Outside the UAE?

Many times, commercial vehicles, including construction trucks, large goods vehicles, utility trucks, etc., are used outside the UAE for transportation purposes, business travel, etc. They are posed with serious risks of accidents, theft, and third-party damages in foreign lands outside the UAE territory. For mishaps inside the country’s territory, business owners can opt for suitable commercial vehicle insurance plans to cover the damages and losses. However, when it comes to incidents that happen with vehicles outside the UAE, business owners get perplexed. Company owners often raise doubts about which insurance policy can cover this risk

So, in this blog, we will explore all essential points related to the question: Are commercial vehicles covered when they are used outside the UAE? Thus, we’ll try to find an answer to it as well.

The Commercial Motor Vehicle Coverage Outside UAE: Is it Possible?

• Before searching for a specific answer to the question of whether commercial motor insurance in the UAE is applicable outside the UAE or not, it’s important to get an idea about the general inclusions and exclusions of the insurance. 

• While inclusions safeguard vehicles and the passengers inside them, the exclusions help to define the boundaries to avoid misuse of the policy. However, the inclusions broadly comprise coverage for the loss or damage to the vehicles, third-party liability coverage, personal accident coverage, etc. 

• Commercial auto insurance is specifically designed for those vehicles that are not insured under any private car insurance. The policy coverage may exclude weight overload, unlicensed driving, intentional violation of laws, and use beyond pre-decided specific purposes.

• These factors suggest that commercial vehicles used outside the UAE may not be covered in some cases. However, despite this boundary, it is not impossible to get insurance coverage for commercial vehicles even if they are used outside the UAE. You can get the special coverage when you include an extra add-on coverage of geographical extension in your commercial vehicle insurance policy. 

How it can be possible: Advantages of Geographical Extension Add-on Coverage

Leading insurance companies in the UAE understand the businesses’ need for broader commercial vehicle insurance coverage. Therefore, they often offer additional geographical extension coverage that can cover accidents, theft, and other incidents that happen with vehicles outside the UAE.

The insurance plans with the added coverage differ to some extent from standard commercial vehicle insurance that only covers risks inside the country. Here are the certain features of the geographical extension add-on coverage that make commercial motor insurance more comprehensive and effective.

• The add-on enables you to travel internationally in commercial vehicles. 
• It takes care of the legal aspects of driving in foreign countries. 
• Many of the add-on plans come with assistance benefits during emergencies. 
• The add-on often includes coverage for more than one foreign country, eliminating the complexity of separate insurance for each country. 
• With a higher premium amount, the add-on includes third-party liability coverage. 
• The add-on may also provide coverage for roadside assistance in foreign countries. 
• The policyholder can include the geographical extension add-on when purchasing or renewing commercial vehicle insurance. 
• The extent of the add-on coverage determines the total premium amount. 

To include the benefit of geographical extension in your company’s motor insurance plan, you may have to increase the premium amount. However, with the help of the right insurance service provider partner by your side, you can negotiate and get the best benefit at a reasonable price from leading insurance companies. A clear discussion with them about the available policy plans and your business nature and goals can help to leverage the benefits of the geographical extension add-on in the best possible way.

About CoverB 

CoverB, as a trusted insurance service provider in UAE, helps business owners, contractors, and individuals to obtain the best-suited commercial vehicle insurance plan and many other insurance plans like machinery breakdown insurance, contractors’ all-risk insurance, and so on. CoverB is a one-stop destination to address the diverse corporate insurance needs of businesses. The experts from CoverB help in every phase of obtaining and maintaining an insurance policy. With a trusted insurance service provider like CoverB, understanding and leveraging insurance packages becomes easier than ever.

Final Words

So far, we have discussed how, by including a geographical extension add-on, companies can get coverage for their commercial vehicles even outside the UAE. Nonetheless, when you decide to include the add-on, you must go through the list of areas or countries that are covered, as the list varies for different insurers. Also, you must read all policy terms carefully to avoid any trouble in foreign countries. Driving in a foreign area outside the country itself brings many challenges. A clear understanding of the inclusions, exclusions, and terms of the added geographical extension coverage can help keep the vehicles and their passengers safe from any unforeseen hazards.