Car insurance is a must in the UAE and to buy car insurance you must have market knowledge and patience to pick the right car insurance for yourself. You need to do the basic research and finalize your car insurance. Everyone wants to get the best customer services and the best repairs and services to the car. Apart from these points, there are various aspects that you should consider to pick the right car insurance. Here in this article, we discuss the points that you should consider for picking the right car insurance.
- Accident coverage
- Roadside assistance
- Off-road coverage
- GCC Coverage
- Agency repairs
- Get your calculations
- Think before buying Third party liability only
- Look for discounts/offers
- Windscreen cover
- Compare different car insurance policies
1. Accident coverage
According to the UAE law, every vehicle should be insured as it provides security and financial protection to the insured. An accidental cover of AED 2,00,000 can be selected by the policyholder to get insurance cover for the driver and passengers. The company may charge an extra premium and it depends on the terms and conditions. AED 60 is charged for the driver and AED 15 will be an additional charge for whom the coverage is extended.
2. Roadside Assistance
While driving your car if your car breaks down it can be frustrating and especially if you are going on a long drive. In this situation, roadside assistance comes to your rescue, and to get the benefit you can call the insurance company which is provided to you on the insurance card. Insurance companies have a mutual understanding with the International Motors Club and AAA Middle East to provide services of towing the vehicle, auto repairs, fuel delivery system, flat tyres, car lock, and boosting battery. This facility is provided throughout all the Gulf Cooperation Council countries. Insurance companies in the UAE offer 24/7 roadside assistance to the policyholders.
3. Off-road Insurance Coverage
The Off-road insurance coverage is a feature in the insurance policy or it is an add on coverage with additional charges. The coverage provides loss or damage for vehicles by payment of the extra premium amount. Vehicles like Land Cruiser, Prado, and Jeep are mostly covered and offered off-road coverage.
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4. GCC Coverage
Gulf Cooperation Council insurance coverage is provided in the UAE. It does not provide permission to drive in all the GCC countries. By having this coverage you can happily travel from one GCC country to another country. If you are a frequent traveler to GCC countries then it is advised to check with the policy issuer regarding the GCC travel coverage and purchase the policy.
5. Agency repairs
By having this coverage facility you can get your car repaired in the workshop of the car company. The agency repairs can be done on your car up to five years from the date of purchase. This is not a thumb rule and it differs from one insurance company to another. After the five years, the insurance policyholder should pay more premium to get the benefits from the policy.
6. Get your calculations
Car insurance providers use various factors such as age, the nationality of the driver, car model, engine capacity, history of the insurance policyholder, the value of the car, and other factors. Based on these factors premium is calculated and when you get to know these calculations you can avail the best use of competitive premium rates and get the best advantages.
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7. Think before you buy Third-party Liability only
A heavy penalty is levied for not having insurance. In Dubai, UAE there are 2 types of car insurance policies. One is a comprehensive insurance policy and the other is third party liability. Third-party liability is basic and a legal necessity for insurance in the UAE. Third-party insurance coverage provides protection against injury or death. It does not provide additional coverage such as theft, fire accident, emergency medical aid, natural disasters, and others. If you only choose a third-party liability insurance policy then you will get additional coverage benefits. Analyze your requirements and select the right insurance policy.
8. Look for Discounts or offers
If you drive safely you have many benefits in Dubai. You can discount/no claim discounts if you have not made an insurance claim in the last few years. To get a no claim discount you have to submit a note from your previous insurance company. Up to 25% discount is provided on the insurance policy. This mostly depends on the previous accidental history, claims, and terms and conditions of the insurance company. When you buy an insurance policy you can claim this discount also look out for insurance companies which provide other discounts and offers.
9. Windscreen cover
Some insurance companies provide windscreen cover in comprehensive insurance that is provided up to AED 3,000. If this is not provided you can ask for additional benefits that are covered.
10. Compare different car insurance policies
In Dubai, different car insurance companies provide the best insurance packages. Each insurance company has its features and customer service facilities. Look at the history of claims settlements of the company, customer satisfaction and services offered by the insurance companies. Higher standards of customer satisfaction by the insurance company ensures the best services. Therefore select the car insurance company that provides the best services.
Takeaway
When you buy car insurance, have adequate information about the insurance policies and make sure that they meet your expectations. Insurance provides you protection, safety, and fulfills legal responsibility. Having an insufficient insurance policy will not provide financial safety. Buy a policy that provides maximum benefits at a reasonable price with add on services that you wish to have in your policy.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
