Car Insurance Inquiry in Egypt

 Car Insurance Inquiry in Egypt Blog Image
23 August 2023

Car insurance in Egypt is one of the most important initial steps that are recommended for car owners, due to the high prices of cars and the high costs of repairing them, as insurance companies cover the costs resulting from accidents and thefts, as well as paying compensation resulting from traffic accidents.

Types of Car Insurance in Egypt

The types of car insurance in Egypt vary according to the type of insured car, as it includes private cars, taxis and others, so the query is made based on several special documents issued by insurance companies on various types of cars, and there are several conditions and standards through which car insurance is divided into two types, where:

  1. Comprehensive insurance.

  2. Compulsory insurance.

Compulsory Insurance

This type of document is the main document accompanying the owner's obtaining a car license, which is issued by virtue of the law responsible for car insurance in Egypt, where the owner is not entitled not to pay the value of compulsory insurance, as obtaining it allows the possibility of driving on public roads, and this is done by paying the insurance value, which is determined based on:

  • Car type.

  • Engine capacity.

Compulsory car insurance in Egypt includes coverage of road accidents, or any other damage to the car, taking into account that this type of insurance is intended for the benefit of public utilities and not for the owner of the car.

Comprehensive Insurance

This type is also known as supplementary insurance and depends on several conditions and policies that vary according to the type of insured cars, and the type of service covered by the supplementary insurance.

Types of supplementary insurance according to the type of car

Supplementary insurance is divided according to the type of car into:

Private Car Insurance

This type of car insurance in Egypt includes private cars used to achieve personal purposes for their owner, such as hiking or buying household items and other tasks for the owner and his family.

Commercial Vehicle Insurance

This type of car insurance in Egypt varies, as it includes cars intended for commercial purposes, which include taxis and buses, in addition to private cars used in commercial activities such as ambulances, fire trucks, and agricultural tractors.

Motorcycle Insurance

Insurance includes motorcycles used for personal purposes, or intended for commercial use.

Trade License Insurance

This type includes persons responsible for manufacturing or trading cars, where cars imported from abroad or cars in sales exhibitions, and provided in this case that the car has not previously withdrawn its metal plates administratively from traffic, and insurance coverage is determined according to the following movements:

Movement of the car from the factory to the shop.

Performance tests of the car after its arrival.

Experience the car through the sales process in front of the buyer.

The movement of the vehicle to the traffic department to conduct the license.

Movement of the car to the place of repair.

Types of supplementary insurance according to the service covered by

Supplementary insurance includes several types according to the coverage it guarantees, and is divided into:

Material civil liability towards the property of others.

Insurance against fire and theft only.

Insurance against fire, theft, civil and material liability.

Comprehensive insurance (comprehensive coverage).

Civil and material liability towards the property of others

In this case, it means that the insurance company bears some material losses caused to the property of others in the event that the insured's fault is proven and caused the accident.

Fire and theft insurance only

This type includes insurance for disabled cars, and then it is required to keep the car inside one of the private or public garages, where the insurance company becomes responsible for covering damage to the car inside the garage such as theft and fire.

Fire, theft, civil, and material liability insurance

This type of car insurance policy in Egypt ensures that the following are covered:

Material losses are caused to another person in the event that the insured's fault is proven and he is required to compensate.

Damages to the insured vehicle from theft or fire, in the event that it is proven that the insured did not cause it.

Comprehensive insurance (comprehensive coverage).

This type provides comprehensive coverage for damages that may be caused to the insured car, in addition to compensating the affected person for damage to his property if it is proven that the insured caused it.

Can I add other coverages?

There are some privileges that can be covered by car insurance in Egypt through an agreement between the owner and the insurance company, including:

Personal Accidents for Passengers

Users of the insured vehicle can be insured against civil liability or bodily injury from family members of the insured, passengers or hired driver, and the compensation is determined according to the degree of physical injury, by determining an additional premium that includes the number of insured individuals, which is equal to the number of car seats.

Riots and sabotage resulting from terrorism

This exception can be added through an additional addendum after the agreement between the owner and the insurance company, provided that the duration of the addendum does not exceed the end of the original policy.

The danger of natural phenomena

Insurance against natural phenomena such as earthquakes, floods or others can be considered an exceptional type that is added to an annex agreed upon between the owner and the insurance company along with the basic policy.

Car insurance outside the Arab Republic of Egypt

Usually, the conditions of car insurance in Egypt apply within the geographical space of the country, but the coverage can extend beyond the borders of the Republic after the agreement between the owner and the insurance company through an annex to the basic policy, by adding fees of up to 100% of the agreed annual premium, provided that the following conditions apply:

The basic insurance policy must be issued for a period of not less than one year.

The age of the insured vehicle should not exceed 5 years.

In the event of total damage to the vehicle following an accident, the value of the damages is deducted at the discretion of the experts from the value of the compensation due before disbursement.

Compulsory compensation is imposed on the insured in proportion to the amount of the car insurance.

How to insure a car

The car insurance process in Egypt is done by following several steps, where:

Choose between companies that provide car insurance services in Egypt.

The owner of the car is informed of the document provided by the representative of the insurance company, as the representative explains it, and if the car owner is convinced, the procedures are initiated.

The insurance card contains the full name, ID number, and customer's profession.

The insurance policy contains the data of the car and includes the car make, model, chassis number, insurance amount, as well as car color and liter capacity.

After confirming the data attached in the policy, the insurance company submits its offer and coverage inclusions to the customer.

The insurance company clarifies the percentage borne by the customer, where he can accept or refuse to impose a percentage of any damage to the car, but if approved, this is an obligation to pay the amount in the event of any damage.

Insurance premiums are determined based on the purpose of the car acquisition (service or personal).

The car is inspected by the insurance company, in order to ensure that it is free of any defects covered by the insurance, and then the customer acknowledges what was stated in the result of the examination.

The insurance policy is issued after payment of the first installment and includes (a true copy of the insurance application, the terms of the policy, the schedule of calculating premiums).

It is necessary to inform the customer of the document before signing it, review all the terms and formulate them clearly and then pay the required installment and obtain the document.

The bottom line

Due to the high prices of cars and the costs of repairing damages associated with accidents, fires or thefts, car owners turn to the institutions responsible for car insurance in Egypt as the ideal option for a lower cost and a safer life.