10 Questions to Ask Before Picking Car Insurance in the UAE
While it has become extremely simple to purchase online car insurance in UAE, the large variety of options and use of complicated insurance terms can make customers second-guess even the best of options. Yet at the same time, the internet has also made it possible to conduct through car insurance comparisons and thereby pick a plan which helps them stay protected without over-spending.
In order to find that most reasonable of plans, here are 10 questions every customer should ask before conducting a car insurance comparison.
Q.1. Third party or comprehensive?
It is illegal to drive without a car insurance policy in UAE as the government has made it mandatory for all. This brings us to the first and foremost question of any car insurance comparison - ‘what types of car insurance policies are there?’
These are the two major car insurance policies offered in UAE:
- Third Party Insurance
This is the most basic type of car insurance policy offered and the minimum any vehicle owner should have. Third party policies cover the car owner against liability from damage caused to other drivers and property. This is the less expensive option. Third party car insurance comparisons should be conducted on the basis of the amount of damage covered under the policy.
- Comprehensive Insurance
A comprehensive plan covers third-party damage as well as damage to the car owner themselves, the car owner’s property, personal belongings and more. Comprehensive car insurance comparisons should be conducted on the basis of the services offered, amount of damage covered and the various extensions available under the policy.
Q.2. What car value should be declared?
Whether one is purchasing online car insurance in UAE or doing so in person, it is important to always share the car’s correct market value. Over-valuing a vehicle will raise its insurance premium, while under-valuing it will result in a much lower pay off in the unfortunate event that an accident leaves the vehicle as a total loss.
Q.3. What is the premium?
One of the largest factors for car insurance comparisons is the premium amount. A premium is an amount the car owner pays in return for the offered services. Customers should be equally wary of suspiciously high or low premiums when conducting a car insurance comparison. While premiums are a good indicator of the policy’s overall cost, they are not the only charges a policyholder incurs.
Q.4. What features does the policy offer?
Some online car insurances in UAE charge extremely low premiums by cutting down on their offered features. It is important to factor in the cost of these services in addition to the premium amount for an accurate car insurance comparison. Extra features may include roadside assistance, additional driver cover and more.
Q.5. What is the structure of charges?
Lured in by the low premiums that online car insurances in UAE offer, customers often fail to notice the other charges that are tacked on to their bill. Additional features, covers and geographic extensions carry an extra charge, which the policyholder is charged on top of their premium amount. This is why car insurance comparisons cannot be done solely on the basis of premium amounts.
Q.6. What type of repairs to opt for?
The type of car repair depends on the car owner’s eligibility and personal preference. No car insurance comparison is complete without considering the type of repairs offered, which are as follows:
- Agency Repairs
An agency repair is one that is offered at any of the car manufacturer’s licensed and authentic workshops. Online car insurances in UAE also refer to this as garage repairs. Agency repairs are costlier, but also ensure the use of high quality and genuine spare parts.
- Non-Agency Repairs
Carried out at third-party locations, non-agency repairs are less expensive and done at workshops approved by the insurance company. Non-agency repairs are generally quicker and while they do not use genuine spare parts, the parts are equally matched in terms of quality.
Q.7. What are the depreciation percentages applicable?
As a car gets older its parts start to go out of the rotation, raising the cost of repairs. As such, the car’s market value begins to drop in subsequent years, which is also known as depreciation. Depreciation is usually the highest in the first year. Car insurance comparisons should take depreciation percentages into account as they directly affect the cost of repairs for the vehicle. Depreciation percentages should be mentioned in the policy document of any online car insurance in UAE.
Q.8. What is the deductible policy?
A deductible is the amount of money the policyholder is responsible to pay for, from their own funds. in the event of an accident. Many online car insurances in UAE also refer to deductibles as ‘excess’. While deductibles charge the policyholder out of pocket, they are also extremely useful for saving money on car insurance premiums. By opting for a higher deductible amount, the car owner is charged a much smaller premium.
Furthermore, deductibles are only charged in the case of an accident, which is an additional incentive for safe drivers to max out their deductible amount. Most car insurance providers set a cap on maximum deductible amounts that can be availed by policyholders. These deductibles caps should also factor into one’s car insurance comparison.
Q.9. Should the car insurance policy be bundled with other insurance products?
Most online car insurances in UAE offer lucrative deals on bundled products. Customers still on the lookout for car insurance, home insurance, life insurance and other such policies should consider purchasing additional products from the same vendor to unlock discounted bulk deals.
Q.10. Where can one conduct a reliable car insurance comparison?
There is no shortage of online car insurance in UAE, which makes comparisons an absolute must for customers. So when it comes to car insurance comparisons, it is recommended that customers head over to a completely unbiased insurance aggregator such as Policybazaar.ae for reliable results.
Over to you
We hope you now have a better idea of what to look for in a car insurance comparison and wish you the best of luck on finding your next policy!