Buying a car is one of the biggest investments a person makes. Therefore it is imperative that the person invests in a car insurance policy as you get financial protection as well as peace of mind.
When you are buying a car insurance in the UAE, you need to be aware of the fundamental aspects that are applicable to it in the UAE.
Following are the aspects to be considered while taking a car insurance in the UAE:
The car insurance in the UAE is available to third party liability and to loss and damage and third party liability. The third party liability meets the minimum law requirement. Loss, damage and third party liability is a comprehensive cover that is bought at various levels. It depends on the additional rider covers and the limit. The minimum cover is provided by most of the insurance companies in the UAE. Extension to the minimum cover can be availed for an additional premium. Make sure the company is sending you the copy of the terms of coverage to you. The terms of coverage should be provided to you on official company letterhead.
- Regulatory requirement:
When you are buying a new car which is used or new or if you are renewing the annual registration for your existing car, you have to buy an insurance. It is mandatory by law in the UAR to have an insurance policy. The minimum insurance required by law is the third party liability insurance cover.
Most insurers in the UAE offer a wide range of options at an additional premium. The riders include personal accident benefit for driver and passenger, vehicle replacement during an accident, agency repair, increase in the limit under third party property damage, towing post an accident, off-road cover, fire and theft cover, storm, flood, strike, riot, civil commotion, emergency medical expenses post an accident, windscreen damage, replacement of locks, loss of personal effects, and geographical cover extension to within GCC countries.
- Premium calculation:
The main factors taken into consideration while calculating premium are cover required, body type, age of insured, driving experience, vehicle value, age, make and model, use of vehicle, number of cylinders and claims history.
- Customer satisfaction rating:
You must check if the insurance provider has a high customer satisfaction rating. You can learn this from reading forums and checking the reviews on reputable sites. If you find out that the provider is not so good at dealing with claims, queries, etc., you might want to consider looking for another insurance provider.
- Quality over price:
Though the price is an important factor, you must also look for what the insurance is offering to you and if it meets all your requirements. There is no point taking an insurance just because it is cheap.
- Insurance company’s credit rating:
Check the credit ratings of the insurance provider. The credit rating gives a good idea of the financial strength of the insurer. A poor rating is an indicator of closure and bankruptcy.
- Time bound offers:
You might want to skip the time bound offers as buying an insurance should be a well thought out process and you also need to compare before you choose one.
If you have had no claims, you will usually get discount on the premiums. If the insurer is not offering you any, you might want to ask the insurer for it. If they are not offering you any discount, keep looking for other insurance.
Also Read: Do’s and Don’t s of Car Insurance
Purchase the right insurance that meets your requirements. Don’t take an insurance based on the premium only, you must know what you are paying for. You must check the policy schedule to ensure that the sum insured, repair condition and deductibles are in line with your request.