Everybody dreams of buying their favorite car at some point of time in life. To fulfill this dream, people save money for a long time or take a loan from the bank. But do you know exactly how much you should save to drive your favorite car? Well, anybody can google the price of a particular car but the purchase is not only limited to just buying a car. It is surrounded by a whole lot of extra expenses and the top position of this list is acquired by a car insurance policy. It is so important to buy car insurance that you cannot drive your own car legally on the road without a car insurance plan.
Today, we’re going to talk about the cost of third-party car insurance. What are the factors that affect the price of a third party car insurance policy? What is the coverage that is provided under this insurance? But before we move on to any of this topic, let us talk about the benefits of a third party car insurance plan.
Why is Third-Party Car Insurance Important?
- Legal Coverage: Driving on roads itself is risky and you cannot guarantee that you can never get involved in an accident. In an accident, you can either be the cause of it or the victim. The damage can be of any type like property damage, vehicle damage or physical damage. A third-party insurance plan provides coverage against the damages caused by you to the third-party while you were using your vehicle. It takes care of the legal procedures and pays for the compensation as well.
- Easy Purchase and Renew: Third Party Car Insurance Dubai is one of the few insurance products that can be purchased easily and it becomes easier to purchase it if one chooses the online mode. The renewal process is also very simple and short. You just have to upload a few pictures of your car and fill up some of the forms and boom, you got your insurance renewed. Considering that not everyone is tech-savvy, looking at how easy and convenient both the purchase and renewal process of third-party car insurance in Dubai, it is a very good plus for the customers.
- Cost-Effective: According to the laws of the UAE government, a third-party car insurance plan is mandatory for every car. We know that a car insurance policy with enough coverage can get expensive sometimes and not everyone can afford to pay those premiums. In that case, a third party insurance policy is a great workaround to just abide by the laws and drive your car freely on the roads. It acts as cheap car insurance in Dubai that provides you coverage for the damage caused to the third-party.
Factors That Determine The Cost of a Third Party Car Insurance Policy
- Car Information: Obviously, your car’s value and other information would be top on the list of factors when we talk about car insurance. Your car’s model, manufacturing year, and variant affect the cost of the insurance plan. Higher the value of your car, higher will be the cost incurred to insure it, and resultantly high is your car insurance. So, if you are looking for cheap car insurance in Dubai, then you should also ensure to buy an economical car.
- Age of Driver: Car insurance companies consider that drivers below the age of 25 years are more probable to get into an accident than drivers above the age of 25. So, this factor also plays role in deciding the premium of your car insurance policy.
- No Claim Bonus: A no-claim certificate is issued if you do not make any claim from your car insurance policy during the policy period. So, when you purchase your next car insurance or renew the same one, this no claim certificate acts as your coupon to get great discounts.
- Anti-Theft Gadgets: Anti-theft gadgets are installed in a vehicle to reduce the chances of it getting stolen. This is considered a good sign by insurance companies because it indicates less probability of them having to pay the claim. Most car insurance companies offer a certain discount if your car is fitted with some sort of anti-theft gadgets.
- Place of Coverage: Different places have different traffic densities. More the traffic more are your chances of getting involved in accidents. According to the usual trend, urban areas are more traffic dense than their suburban counterparts. Hence, you have to pay higher premiums in urban cities like Dubai.
How Much Should You Spend on Car Insurance Premiums: Car Insurance Calculator
To get a real insight into how much a third-party insurance policy costs, a car insurance calculator proves to be really helpful. It is a tool that is made available by a lot of car insurance companies online. It helps you to calculate exactly how much you should spend on car insurance premium by taking as input some of your personal information.
These calculators suggest you some plans based on your requirement. These online tools are getting very popular in the group of customers who are looking for third-party car insurance in Dubai.
We hope this article has helped you to understand a third party car insurance policy and how the cost of a third-party liability car insurance plan is decided for every customer. All in all, although a third-party car insurance policy is mandatory to have bylaws comprehensive insurance is necessary to buy for your own safety.