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Everything you need to Know About Car Insurance Coverage

Everything you need to Know About Car Insurance Coverage
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Life amazes us when we least expect it; it has the potential to offer us those plans that could blow up in our faces. At some point, you must have witnessed some bitter experiences in life that motivated you to be ever-ready for whatever life throws your way. With that being said, we cannot rule out the importance of insurance in our lives. For the simple reason that the further in advance you equip yourselves, the more time you get to fend off bad surprises. And when it comes to car insurance coverage, there is nothing better than safeguarding your four-wheeled raving beauties against unforeseen occurrences.

Finding the best car insurance plans in the UAE can become a muddling haze with all the options and service benefits out there. Typically a vehicle owner is grappled with this question- what’s next after buying this car? First and foremost, a vehicle owner should register and insure his/her car before getting behind the wheels in Dubai as well as other Emirates. The region is already under a legal mandate to make car insurance compulsory for all. But before you go any further, you must understand the types of car insurance coverage:

Types of Car Insurance Coverage

1. Third-Party Liability Insurance

This cover is the most affordable one when it comes to basic car insurance coverage in Dubai. The insurance cover grants protection to the third party against any bodily loss or property damage arising out of insured car owner’s mistakes. The policy does not include coverage for damages due to fire or theft. If you buy this insurance, you will be required to shell out your own money in case of repairs due to an accident.

2. Third Party Liability Insurance (with Theft and Fire Coverage)

To enhance the protection range of basic third party liability cover, there’s an option that you can purchase add-on features like fire and theft coverage and increase the scope of protection. However, the inclusion of add-on features would definitely increase the cost of your premium.

3. Basic Comprehensive Insurance Policy

If you own an expensive car which includes high repair costs then a basic comprehensive policy will come in handy. Not only does this policy cover third-party losses but also the insured’s own loss. The protection under this plan is comprehensive and covers major aspects of insurance like an accident, natural calamity, theft and more. For those customers who have been looking for car insurance plans in the UAE, this type of insurance policy has in-depth coverage that will add value to their insurance plan. Even though it is a bit on the pricey side, it is more inclusive than the third party liability.

4. Add-ons With Comprehensive

Get comprehensive car insurance coverage by including add-on features to your basic plan. These add-on covers will help keep you staunchly protected at all times- GCC Cover, Oman extension, Agency repair, Windscreen cover, to name a few.

5. Premium Comprehensive Insurance Policy

As the name suggests itself, this car insurance policy can be termed as the most expensive insurance policy in the region. Typically, the insurer offers this specialised policy to high-end clients with expensive luxury or sports cars. Even though we have classified the car insurance coverage into five different types, but these types have all been stemmed from the two basic types i.e comprehensive and third party. The basic difference is that third party liability cover makes more sense for the secondhand and old vehicle owners, helping them save a lot on the premium. Whereas, the comprehensive protection would seem to be ideally suited for the luxury car owners. 

Now comes the second part, that gives a run-down on the process that comes into play when searching for the best car insurance plans in the UAE. It comes as no surprise that grabbing the right car insurance plan can become a cumbersome task considering there is so much to look out for while sorting preference. A host of questions that may seem to pop out of the blue are: how much coverage will do (for me)? What policy is apt for me? How do I know if I am getting a fair deal or not? The best answers to these questions are listed below:

6. Understand your Needs

It goes without saying that the UAE market is burgeoning with options such as car insurance companies that offer wide-ranging services to the customers. Even though the offerings of different service providers might vary significantly, there is no point in nitpicking over irrelevant comparisons. Based on your discretion, you can choose an insurer that meets your criteria. By taking indispensable add-ons into account, you can sort things out. Keep in mind that the right car insurance coverage is easily achievable if you are able to identify your needs and hit the spot.

7. Understand your Insurance Calculation

Insurers take plenty of reasons into account while formulating the rate of insurance. External factors like the driver’s age and origin, the make, and model of the car, size of the engine, past insurance claims, and the current market value of the vehicle. It is strongly recommended that customers take note of these factors while browsing car insurance plans in the UAE.

Factors that Determine the Rate of Premium

Here are some critical factors that determine the rate of premium:

  1. Age of the vehicle Owner- The insurer would consider under-aged drivers costly to insure for the level of risks associated with them.
  2. Make and Model of the Car- The insurance company also takes the car specs, models, make and performance into account. If a car of certain make and model is highly prone to accidental risks, then it would definitely cost more to insure. It is imperative that the customer carefully goes through the fine print and ins-and-outs of the policy whether he/she owns an exotic car, or for that matter.a car older than 5 years or more.
  3. The Rate of Interest- The insurer considers two types of interest: fixed interest rate and balance interest rate. The fixed interest rate remains constant for the entire insurance period and balance interest rates keep decreasing with time.

Over to You

The aforementioned points can help you ease the burden of finding the right car insurance coverage. You can also seek assistance for car insurance services related queries through online portals dealing in financial products and services. By reaching out to insurance experts, you can get a tailored plan for your needs. Considering all the given options and the benefits available with them is crucial in making the right insurance purchase decision.

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