The 2 Types of Car Insurance in Egypt

Compulsory car insurance is one of the most widespread insurance policies in Egypt since 2007.

Having a car has become a necessity in most home, and to be at peace when you’re traveling, running errands, or driving to work in your car you must have an insurance policy for both yourself and your car.

Car insurance comes in 2 types:

1] Compulsory Car Insurance: 

One of the most popular insurance policies in Egypt since 2007. It is obligatory for anyone who obtains or renews a car’s license to purchase a policy from the various car insurance companies’ kiosks located inside each local Department of Motor Vehicles office.

Compulsory car insurance covers damage caused to a third party by the car owner. The Unidentified Traffic Accident Fund compensates victims’ families with up to 40,000 EGP in case of death. If a hit and run accident results in total or partial disability or any other damage (except damage to other cars including privately owned, taxis, buses, and trucks) the victim may be compensated by up to 10,000 EGP according to the severity of each case.

The victim must inform the insurance company within 7 days of the accident so that the company may start the proper procedures.

Supplementary car insurance is very important

2] Supplementary Car Insurance:

This is the 2^nd type of car insurance. The insurance policy is in the name of the car owner (whose name must be on the driver’s license as well) but the compensation is usually accorded to the bank or loaning authority if the owner acquired a car loan in order to purchase the vehicle.

On occasion the bank will grant the policy owner partial compensation in case of partial theft but the bank will always stipulate it receives total compensation if the car is stolen or totaled in a fire for example.

What does supplementary insurance cover?

• Partial damage that occurs to the car. The insurance company will pay the repair fees or pay for spare parts if the car is in an accident or a fire.
• The insurance company pays out the entire insurance amount if the car is a total loss.
• The insurance company will compensate any third party affected by an accident caused by the car owner.
• The passengers in the car at the time of the accident are covered by personal accident insurance.

When you plan to buy a car one of the most important things to consider is car insurance. It doesn’t matter whether you pay for the car yourself or with a car loan, having car insurance is a must.

If you are considering a car loan check Faydety’s car loan calculator.

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