5 Tips to Help You Buy Car Insurance


 

While it is exciting to choose the latest car model, it is equally important to do some homework and know about car insurance and the entire process of how to procure the right car insurance for the first time or at the time of renewal of policy. Comparison is the key to choosing the best suited car insurance; it helps you know the charges and the insurance jargon as well. Your insurance broker will guide and advise you on how to navigate through different insurance deals to ensure an appropriate policy with adequate motor, liability and accident cover. In the UAE, car insurance is compulsory and you cannot register your vehicle without one.

 

Here’s 5 tips to help you buy car insurance.

 

Choose a Suitable Plan

 

You must know there are two kinds of car insurance offered in the UAE : comprehensive cover and third party insurance. Comprehensive cover has higher costs of premium as it provides extensive cover and  protection from non-accident damages like theft, fire, vandalism, natural calamities etc. On the other hand, third party insurance is cheaper with a basic insurance premium covering legal liability, death and injury and third party vehicle damages - it does not cover damages caused to one's own vehicle.

 

Choose a reputable Insurer

 

Whatever kind of car insurance one opts, the quality of service matters the most. With plenty of insurance providers and deals, it can be mind boggling to choose the right insurance provider. Your insurance broker should be able to choose the right insurer with good financial health and a good reputation in the market. Also, in such cases, doing some homework to check the claims settlement ratio always helps, how much time it takes and if there are online services.

 

Check the inclusion and the exclusions

 

Before choosing and signing on the dotted line of a car insurance policy, make sure you’ve gone through the terms and conditions of policy coverage and offerings. Know the inclusions and the exclusions and double check to avoid fraud and risks and necessary precautions. Also, remember to review coverage details by reviewing health insurance clauses around long term injuries and permanent disability. Knowing the policy charges and why the premiums cost what they are is important.

 

Know the numbers

 

Besides the coverage inclusions and exclusions, another important component is sum assured and the premiums calculated depending on the make and type of the car, engine size, claims history and the accrued no-claims discounts, and value of the vehicle.

 

Choose the right add-ons

 

Whatever preferences work for car insurance buyers, the advantages that come with a customized plan are the right add-ons like zero depreciation, roadside assistance, loss of personal belongings, etc.

 

As a thumb rule, anything that comes cheap is definitely not the safest and the best. Re-reading the clauses and the fine print again and again is a sure way to foolproof into getting a good car insurance plan with the desired benefits. Also, one must ensure one does not go overboard with an overpriced car insurance plan that will make a dent into savings and budgets.