What is the need for car insurance in Dubai?

Car insurance in Dubai is mandatory for all drivers, which highlights its significance in ensuring financial protection. This requirement is in place to safeguard drivers against potential expenses resulting from accidents, damage to vehicles, and third-party liabilities. In the event of an accident, having insurance can cover repairs, medical costs, and legal fees, thus alleviating the financial burden on the policyholder.

The option stating that it is optional for most drivers misrepresents the legal framework in Dubai, where insurance is a strict requirement for vehicle registration and operation. The suggestion that car insurance only covers theft does not reflect the comprehensive nature of standard policies, which typically include coverage for accidents and liability. Lastly, while car insurance may assist in certain vehicle-related issues, it does not specifically cover mechanical failures, as those issues are often addressed through warranties or service agreements rather than insurance policies. Thus, the mandatory aspect of insurance in Dubai primarily serves to protect drivers and their financial interests in a variety of scenarios.