The Right Way to Draw Car Insurance Comparison

By Laxita Gautam
  | Published: 15 November 2021

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Every financial expert states and reiterates that comparison is the key to buying the best. Whether it’s buying a new television or a house, comparison is a must in every single scenario. The same applies to car insurance plans as well. Even with all the talk around how important car insurance comparison is, it can be a little difficult to do it properly. You must consider several small and big factors when you compare car insurance plans. This article will cover all things you need to consider for comparing car insurance plans. From car insurance quotes to the claim process, we will cover everything so that you know the right way to compare car insurance plans in the UAE. 

 

Check the Total Sum Assured 

The very first thing to do when comparing car insurance plans is to check the total assured sum of the plan for third-party liabilities. To easily identify this sum, check the greatest number written in the plan details. This is usually the maximum amount the insurance company offers to cover all third-party damages and liabilities in a case where your vehicle caused the damage. Finding a plan with a high assured sum for third-party liabilities is extremely important. Underinsured drivers often end up paying out of pocket in an accident where insurance pay-out is not enough to settle expenses incurred due to damage. 

Cover Own Damage Benefits

If you are planning to buy a comprehensive car insurance plan, checking your own damage cover for accidental damages also becomes a priority. Good car insurance plans in the UAE covers the damages caused to own a vehicle up to the insured declared value of the vehicle. If the repair of accidental damages ends up costing more than the insured declared value of the car, the insurance companies offer a payout as a total loss. Check that the insurance plans you are keeping in sight have a similar arrangement. Look for any additional limits applied on your own accidental damages cover too. 

Compare Available Add-Ons or Riders

The availability of add-ons to be taken with a plan depends on the plans and the providers. It is not a given for every provider to offer every possible kind of add-on available in the insurance market. So, research for general add-ons beforehand and pick the ones you would like to take. Then, compare insurance plans and see which one offer the add-ons that you want. Note that some benefits that are typically available as add-ons may also be available as basic benefits in highly comprehensive plans. Keep an eye out for that as well when you compare car insurance add-ons.  

Check for Agency Repairs

Agency repairs benefit allows you to get your damaged car repaired at manufacturer workshops directly. Your insurance provider will cover the expenses for repairs as subjected in the insurance plan. Without agency repairs benefit, your car will get repaired in one of the network garages verified and approved by the insurance company. Good, more comprehensive car insurance plans offer up to 5 years of agency repairs as a basic benefit. Other comprehensive plans may offer up to 3 years of agency repairs as a basic benefit with an option to get additional years with an additional premium. Some plans may offer agency repairs as an add-on benefit only. Compare car insurance plans online to find out what kind of benefits you can avail of from your top picks when agency repairs are concerned. 

Look for Return to Invoice Benefit

Return to invoice benefit can save you a lot of money in terms of the insured declared value of the vehicle. As soon as your car is out of the showroom, depreciation starts applying and the value of the car decreases exponentially with time. A return to invoice add-on allows you to retain that value for a few additional months. This means if your car gets totalled when you have a return to invoice cover active, you will be compensated as per the ex-showroom price of the car and not the current market value. The tenure of this cover can differ as per the comprehensiveness of the insurance plan. More exclusive car insurance plans may have this cover for up to 24 months after the initial purchase date of the car. The minimum tenure you will find for return to invoice benefit is 6 months. It is often added as a basic benefit and is also often available as an add-on in some plans. 

Understand the Claim Process

The claim process of an insurance provider makes a huge impact on the overall score of the plan. A comprehensive and cost-effective car insurance plan with a hectic and confusing claim process will end up giving you more troubles than solace in times of need. Car insurance claims are the ultimate redemption of the plans after all. This is why you should always compare claim procedures as well when you compare car insurance plans in the UAE. Check out each step and see if the instructions to submit the claim are clear and concise. See if there are any additional free services provided that can make your car insurance claim journey even easier. For example, AXA comprehensive car insurance plans come with a free pick-up and drop service to the network garage or agency for your car when you submit a claim for damage repair. Compare car insurance online to find these rare finds. 

Check the Renewal Options

Renewals are extremely important for your car insurance plans for the convenience of service and legal reasons. Most insurance providers offer the option to renew your car insurance plans via online methods for plans bought online. But renewing car insurance plans online that you bought offline may include a few extra steps. Check both these procedures and compare car insurance plans for the availability of renewal options. Try and find a provider with a simple and quick renewal process. Also, look for an additional grace period for renewals apart from the basic 30-day grace period that comes with all plans. Some providers may offer additional few days as a grace period to renew your car insurance plans. 

Know Why Your Car Insurance is Valid for 13 Months Only

Read the No Claim Bonus Policies 

Even though the concept of no claim is pretty much the same for all insurance providers, small but important differences can be spotted. Check out the different things related to no claim bonus policies of the insurance providers and plans you have chosen. Check the minimum no claim bonus you will get for the first claim-free year and the acceleration after that. While you are at it, also check the availability of a no claim bonus retention add-on. Find out how many claims are allowed in a given period. Some providers allow one own damage claim per year while others offer three claims in two years. Weigh all these factors when you compare car insurance online. 

Check Portability of the Insurance Plan

Car insurance plans can be ported to another provider at any given point. You can also port yourself to another plan from the same provider or a different one without losing added benefits like no claim bonus. While porting from one plan to another is easy and universal, porting your current car insurance plan to another provider may not be a service that all insurance providers offer. Check and compare car insurance online to find out what level of flexibility your top choices of insurance providers offer. 

Find Out Claim Settlement Ratio

The claim settlement ratio of an insurance provider gives you useful insights into the probability of getting your car insurance claims approved. It also shows the transparency and clarity that the provider offers for their policies and rules. Opt for plans and providers with a high claim settlement ratio. Also, check what kind of claims get approved the easiest and which ones have the longest history of rejection. Make this particular step a priority when you compare car insurance online.

Compare Prices and Discounts 

Last but not the least, compare car insurance quotes online to find good cost-effective insurance for your car. Obtain a few quotations and then draw a final comparison of the top contenders. Make sure that you also keep the benefits offered in mind when doing so. Your goal should be to find a plan that gives you the value of your money and is also under budget. Do not make comparing cheap car insurance your sole area of focus. When you compare cheap car insurance plans, also take a few minutes to compare discount options. It is rare to come across special discounts when it comes to car insurance plans but you can still save a few Dirhams. Many insurance providers offer up to 30% discounts on the online purchases of car insurance plans. Compare these numbers to score the best deals. 

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Where to Compare Car Insurance Plans?

The best place to draw a comparison of your car insurance plans is on online platforms. While there is no harm in buying your plan offline if you do not mind the added labour and the middlemen, comparing car insurance offline is a hassle you do not want to take on. The options a limited and there is not enough data to go on with. Online research and comparison platforms allow you to draw better and more comprehensive comparisons of all the top available car insurance plans as well as providers. 

Use Car Insurance Comparison Tools

Online car insurance tools are the easiest way to get your comparison done without spending a lot of time behind the screen. Policybazaar UAE offers one such convenient car insurance comparison tool and platform. You can select any number of plans you want to compare and check the benefits side by side for a better understanding of what is available in the market at any given point. This is time-saving and more convenient than visiting every provider website to figure out all the potential benefits their car insurance plans offer. To make things even better, you can even buy the plan you find the most suitable for your car using the same platform. It is an all-in-one solution for all your insurance needs. 

Benefits of Comparing Car Insurance Plans 

Following are some of the top benefits you can look forward to enjoying after a successful session of car insurance comparison:

  • Find the Best Price: Getting the best price for your car insurance coverage is the very first and biggest benefit you get when you compare car insurance online in the UAE. You can find a plan that ideally suits your budget without compromising on the coverage scope. 
  • Helps in Getting a Comprehensive Coverage: If you buy your car insurance plan without comparing, there is a well enough chance that you will miss out on better, more comprehensive options. Comparing car insurance online will allow you to get the most comprehensive car insurance plan for your ride at price that you prefer to spend. 
  • Better Understanding of Market: When you compare car insurance online, you not only get familiar with your plan but also the other options available in the market. So, if in future another provider starts offering something additional and better, you will be able to decide to switch effectively, without delay. A better understanding of the car insurance market will allow you to make better purchasing decisions. 
  • Discounts and Offers: To compare car insurance online is to save on your purchase. Most discounts and deals on the purchase of car insurance plans are offered online only. You will be able to find the best possible deal when you compare car insurance online. 

The Final Verdict 

Car insurance comparison in the UAE may seem like a lengthy process but it’s a lot easier in practice. With the right tools at your disposal and a little bit of guidance, it is rather easy to compare your options online and choose the best possible coverage. Take a bit of assistance from our financial experts to make sure you are going in the right direction. Comparing and buying car insurance is a matter of minutes with the Policybazaar UAE car insurance comparison platform and seamless purchasing process.

Laxita Gautam
Laxita Gautam

Senior Content Writer | She functions on classic British fiction, Japanese manga, and strong americanos. Laxita is tailor-made to create engaging, interactive pieces that offer simplified insights into complex subjects.