Whether you upgrade to a new car or just purchase an old one, getting car insurance is mandated in Dubai. While the majority of car owners buy insurance as a formality, some take it seriously and put efforts before making a decision. Often, the low premium cost is the sole deciding factor. But, some car owners go an extra mile and compare various insurance options available online to ensure they’ve thoroughly checked multiple parameters including cost before finalizing a product.
In this article, we have touched on what coverage you should look for and how to figure out the best deal from the abundance of option available nowadays.
When to get/renew a car Insurance?
If you’ve purchased a new vehicle, it’s mandated by the government of UAE to get automobile insurance too. Generally, a policy runs for a period of 12 months in Dubai, but you’re given another month to renew your policy. While renewing your policy, it’s advisable to re-evaluate your car insurance options because insurance needs change over time. Maybe you want to protect new upgrades on your car; maybe you moved to a safer neighborhood; maybe you added a teenage driver. Another reason to review your car insurance options is the periodic price changes in car insurance. According to buyanyinsurance.com, car insurance isn’t a ‘set-it’ and ‘forget-it’ deal. You should consider comparing quotes every year to save you a bundle in the long run.
What should be covered under car insurance?
In the event of an accident or theft, you should have a basic cover of all the below six core areas:
- Body Injury liability- to cover the cost of medical injuries to another party caused by you.
- Property damage- to pay for the damage to vehicles or the property caused by you.
- Personal Injury protection- to cover the cost of physical injuries to the passenger in your vehicle or the driver.
- Underinsured/Uninsured motorist-to protect you if another party hits you and can’t pay the cost of injury and damages.
- Collision- to cover damage caused by another car, an object, or from flipping.
- Comprehensive- to cover the expenses that are caused by theft, natural disaster, vandalism, etc.
In addition, many insurance providers in Dubai offer “endorsements” or supplemental coverage along with the policy. Roadside assistance, towing, rental reimbursements, etc., are included in these coverages. However, adding any of these endorsements would mean a bigger premium. So, it’s better to evaluate your options and see if adding extra coverages is cost-effective in the long run.
Types of Car Insurance in Dubai
Top insurers in Dubai offer plans that can generally be classified under two main categories-
1. Third-Party Liability Insurance
This plan is a mandated requirement for all the vehicles playing on public roads in the UAE. It covers accidental death, damage to property and injury to a third party.
2. Comprehensive Motor Insurance
A widely accepted option, Comprehensive Plans are preferred because it provides covers for both legal liabilities of the third party as well as ‘own damage’. Additionally, protection against thefts or damage caused by natural calamities is also covered under this plan.
What factors affect the premium for vehicle insurance?
The calculated amount of your premium is affected by the risks that insurance providers will be underwriting while you buy a policy. These risks can be grouped under four following categories:
- Driver risks – consider the age and profession of the driver.
- Location risks – considers the area of registration. Urban, near-highways or populated areas will have high premiums.
- Vehicle Risks – Your car’s make, cubic capacity, fuel type, and other parameters determine the premium. Commercial vehicles or SUVs have higher premiums because insurers get a large number of claims on such vehicles. Cars that run on diesel have a 10-1% higher premium than petrol cars.
- Claims History – plays an important role in car insurance. If you have got a claim in a particular year, the premium might go up in the following year.
Which is the best car insurance company in Dubai?
Selecting a provider that can hit the sweet spot between great coverage, affordability, and reliable service is a tricky part. After being in this industry for over 15 years, we’ve listed three best practices for everyone to get started:
1. Compare quotes of different insurers
It’s true that there is no single best insurance provider in Dubai for everyone. The key to finding an insurer whose underwriting favors your circumstances is by comparing personalized quotes from different service providers.
2. Check Claims History
Buying the cheapest car insurance in Dubai isn’t difficult but getting hold of a provider that can adequately handle your claim requires some homework. You can always check Consumer Reports and other forums to find customer ratings before choosing your safest bet.
3. Check for Customer Support
Auto insurance customers are more satisfied if the insurers have a better way for shopping, paying premiums and filing claims. It takes away a lot of hassles for the policyholders. The point is to check if an insurance provider offers diverse resources-online, email, chat, phone, or WhatsApp. Multiple resources mean multiple options to get your voice heard.
Buying cost-effective car insurance in Dubai becomes easier if you’ve reviewed your options wisely and thoroughly. Compare quotes from different companies and find the coverage you need at an affordable price. Also, keep reviewing your policy regularly to ensure you get the best rates out in the market.