Everything you need to know about car insurance
Just bought your dream car? The next step is to make sure you’re getting the right car insurance policy for your new set of wheels. Based on a recent poll by Souqalmal.com, nearly half of the survey respondents in the UAE weren’t satisfied with their current car insurance policy. That’s why you should make sure you get a policy to suit your needs. Rather than taking on the first policy you stumble across, make sure you explore your options and read the fine print. Below are a few things to keep in mind before committing to a car insurance policy.
How much will it cost me?
There are a several factors that determine the cost of your car insurance.
Does age matter?
A factor that can determine your insurance cost is the driver’s age and how long they have been driving for. Younger drivers usually pay more for insurance, since they’re more likely to make a claim. Insurance is also costlier if you have been driving for less than a year and will vary depending on the provider.
What about the car’s model?
The year in which your car was manufactured will also affect the cost of your insurance. Newer cars, especially high-spec or speedy models, cost more to insure. If your car isn’t new, insurance companies may want to inspect it before quoting you. It’s best to get an inspection and valuation done by a professional when you buy a second-hand car.
What is a no-claims discount?
If you have been driving for several years and haven’t made any claim till date, make sure to ask for a discount from your service provider and save on your policy. Any claim as a result of a third party’s fault usually won’t affect your discount.
What type of coverage do I need?
There are two types of car insurance policies: fully comprehensive cover and third-party liability cover. The kind of policy you choose will also determine the cost of your insurance.
All cars in the UAE have to have at least a third-party liability cover. In the event of an accident, you will need to bear the costs of all damages to your vehicle, while the insurance will cover damages caused to the other parties involved. This is the minimum coverage level possible in a car insurance contract and is cheaper compared to a comprehensive policy.
On the other hand, a comprehensive policy offers complete protection, whether you caused the accident or not. Any damages due to theft, accidents and fire are also covered. If you’ve bought a new car, it’s probably best to go with a comprehensive insurance policy. But if your car is fairly old and the cost of repairing is minimal, you can opt for a cheaper insurance policy or the basic third-party cover.
What additional covers can I get?
Agency repair: In case of an accident, the agency repair cover will determine if your car will be repaired by the official dealer of the car brand, or by an external garage appointed and accredited by the insurance company.
Car hire: This cover will make your life easier in the event of an accident or a breakdown. The insurance company will cover the cost of renting a vehicle while your car is being repaired. Make sure to check the duration for which you will hire the rented car, which may vary depending on your policy. This is an extended facility that comes along with a comprehensive insurance policy.
Roadside assistance/ breakdown cover: Many car insurance policies automatically offer roadside assistance. It’s a handy addition if you’re constantly on the move and don’t want to be stranded for hours in case your car breaks down.
Off-road and GCC cover: Enjoy driving in the desert? Make sure to check if your car insurance policy covers you while you are off-roading. If you take frequent road trips in the region, you can also choose to upgrade your policy to include the GCC cover.
Personal belongings: Are your personal possessions covered in case of theft or fire? It’s wise to ensure your personal belongings are covered under your insurance policy.