Purchasing Your First Car Insurance? Don’t Skip These 6 Tips!

  | Published: 14 August 2019 | Last Updated On: 13 January 2021

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If you are all set to buy your first car, one of the first things you should do after purchasing a new car is opting for a right car insurance policy because safety comes first before anything else. Not only the right car insurance policy provides protection to you and your vehicle in any unforeseen situation but also it is mandatory to have a car insurance policy as per the UAE RTA law. Thus, you can’t drive your car legally without having an auto insurance policy.

Unfortunately, many car owners think of car insurance policy as an added liability and they opt for the first policy they come across without even putting their efforts to understand its consents. This is one of the biggest mistakes that car owners make inadvertently. In fact, this could cost them a fortune than they actually budgeted.                                                                            

That is why, it is vital to do some good research before buying an auto insurance policy in order to seal the best deal and know exactly what are you paying for.

In this article, we have provided some useful tips for the first-time car insurance buyer.

Understand What Type of Car Insurance Plan You Need

There are mainly two types of motor insurance policies offered in the UAE and they are as follows:

  • Third-Party Liability Insurance: This type of car insurance plan is mandatory under the UAE RTA law. It is a basic car insurance plan that covers all the legal liabilities that may arise out of death, accidental injuries, or property damage of a third-party. Under the third-party liability insurance, the insured car or its owner is not covered.
  • Comprehensive Car Insurance Policy: A comprehensive Car insurance plan, as its name depicts, provides wider protection to the policyholder. It pays for all the damages in an event of accidental damage, fire, theft, vandalism, natural disasters, and third-party damage. In short, this type of car insurance policy covers third-party damage as well as damage to the insured vehicle.

Comprehensive car insurance plan tends to be costlier in comparison of third-party liability insurance since it offers wide protection. However, it is an optional plan in the UAE. So, you can practice car insurance comparison UAE and research on what these both car insurance plan offer before finalizing the deal. This will allow you to opt for the right insurance plan.

Know About the Additional Add-On Covers

There are numerous car insurance companies that offer add-on covers along with a comprehensive car insurance policy in order to provide additional benefits to its policyholder. You can opt for several add-on covers such as Agency Repair, NCB Protect, GCC Coverage, Personal Injury Protection, Roadside Assistance, Windscreen Cover, etc as per your insurance needs. But please note that these add-on covers can push up the cost of your overall insurance premium. So, make sure, you ask your car insurer to explain all the add-on covers that have been included in your motor insurance policy so that you know what are you paying for and how can it be beneficial for you in the unforeseen event.

Get Familiar with Jargons

Auto insurance plans are full of jargons which might confuse you especially if you compare car insurance online in the yearning of getting the right insurance policy. You might come across some common terms such as no claim discounts, deductibles, excess, insured declared value during your research. So, make sure you understand properly all of the commonly used terms used in the motor insurance policy to know about your insurance cover better. 

Know About Compulsory Deductibles

A deductible is an amount that you commit to paying (as a policyholder), whenever you file a claim against your insurance policy. The deductibles can range anywhere from 500 AED to 2000 AED. Also, it can vary based on different factors such as age, premium type, and several other factors. In general, if you offer to pay a higher deductible the insurance premium cost comes down.

Go Through the Fine Print

The car insurance policy document may be filled with some legal jargons that may not make much sense to the person who is buying a policy for the first-time. Or not many people both to read their insurance policy and they remain uninformed about the scope of their auto insurance coverage.

For example, ‘Is my auto insurance policy affected by geographical territory?’ ‘Does your auto insurance policy cover accident or both breakdown and accident?’ Well, you should take out some time to go through the insurance policy document and get clarify all of your doubts (if, any) with your car insurance provider before taking any final decision. Also, pay close attention to the inclusions, exclusions, and understand the conditions stated as it will be ultimately helpful for you at the time of making an insurance claim.

Never Buy Insurance Policy without Comparing

While buying a car, did you just bought the first car you saw at the showroom? Of course, not! Right? Because it is obvious that wanted to buy the best model as per your need and budget and you can’t simply purchase any car since it is a great investment itself.  Same things apply when it comes to purchasing a car insurance policy. It is must to purchase the right car insurance policy for your vehicle so that it can provide you the best coverage in an event of an unforeseen situation.

And the key to finding the best auto insurance policy is to practice car insurance comparison UAE. There is a wide range of car insurance providers in the market. You can compare different car insurance quotes online and weigh out the insurance premium with the coverage offered and opt for the option that suits your budget and insurance needs the most. Make sure, you also consider the reputation of the car insurance provider and its customer service as well. Doing this will help you to make the most of your motor insurance policy.

Bottom Line

Buying a right car insurance policy for the first time can be a difficult as well as confusing task, but with the help of aforementioned tips, you can easily select the right insurance policy for your car with ease.