Tips for those Buying Car Insurance for the First Time

Here are some car insurance tips for the first time buyers to help them in navigating this process which is new for them.

Understanding the Basics

Car insurance shields you against financial losses that might occur when you get involved in a car accident. As per the laws in the UAE, it is mandatory for all drivers to get their vehicle insured. Under the car insurance policy, you pay a premium to your insurer, and your insurer pays off your losses as per your policy. A policy may typically last from 6 months to a year. Your insurance provider will notify you when it is time to get your policy renewed or when to make payment of your premium.

Types of Coverage

The policy that you purchase from the insurance company is based upon many factors, that include your driving record, your age and the type of car you have. Your policy may have different kinds of inclusions and each of them are separately priced. Some of these inclusions are listed below.

1. Towing Assistance: If your car breaks down or meets with an accident, you will get an assistance in towing your car to the nearby workshop.
2. Repair Assistance on-site: In case your vehicle breaks down on the mid-road, your insurance provider will recompense all the cost incurred on repairs.
3. Extraction & Removal: In order to extract or remove your car from the spot of incident in the case of break down because of accident.
4. Leaking or Flat Tire Assistance: If your tires go flat or if there’s any leakage, your insurance provider will provide assistance for replacement or removal of the tires without charging any labor fees.

All these coverages are not necessarily required for you and all of them do not make sense for you & your situation. You can choose the ones that fulfil your needs.

Knowing the Law in the UAE

Keep a knowledge about the minimum insurance amount you that is needed on your car according to the requirement in the UAE. However, the extra coverage that you buy with your policy might prove to be worth the expense in case you meet with an accident or if your car gets damaged.

Determining the Premium

A lot of factors affect the premium you pay on your insurance policy.

1. Your driving record for the past 3-5 years.
2. Your insurance score based on your credit (depending upon the information on credit report)
3. Your gender, age and marital status. Males, unmarried and people under the age of 25 tend to be involved in more accidents and hence, have to pay higher premium.
4. The kind of car you drive. You might have to pay more if in case your car is new or expensive, truck, an SUV or sports car.
5. Usage of your car
6. Previous claims
7. Your previous insurance coverage
8. Liability coverage limits
9. Deductibles selected for collision & comprehensive coverage

If you are a first time buyer, then it might also impact the rates.

Comparing Motor Insurance Quotes

When you buy car insurance for the first time, it is recommended that check online car insurance quotes and compare them. After the comparison, select the one that suits your pocket as well as your needs.

Utilizing the Discounts

If you are a new driver or have a break in your car insurance, it might get a little difficult for you to find a cheap insurance. However, you still have options to save. Go through the different discounts that are offered by the insurer.

Bottom Line

If you are buying a car insurance for the first time, it can prove to be a daunting task. The tips mentioned above can help you in buying your first policy. Just make sure you compare car insurance quotes online, go through different coverages you need, have a knowledge about the laws in the UAE. You should also beware of scams and fake insurers.