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Avoid Car Insurance Mistakes & Get Cheap Policy

Written by Huma

Some Car Insurance Mistakes can be honest to fatal errors that can hurt your auto coverage plan and of course your wallet.

Traffic violation and driving mistakes had compelled the UAE government to make car insurance as an obligated requirement for anyone who has any sort of auto vehicle.

But how about the mistakes that we used to make when purchasing insurance policy due to our lack of awareness or complex insurance jargon or insurance representative over the top pursue skills that hide significant charges and conditions.

The best way to get yourself an ideal and cheapest car insurance is to make sure that you are well-informed through different online and offline insurance platforms and avoid car insurance mistakes that can be costly.

Therefore, adopting short term coverage plans where premium is low can bring the wave of hardship in the future.

To clarify which car insurance mistakes that we should avoid at any cost, we have highlighted the following reference points that focus on the major to minor policy errors.

Car Insurance Mistakes

Mistake #1

Cutting Vehicle Coverage Plans:

Every car demand different insurance policy and coverage plan.

Hence cutting the basic or major car protection cover in your policy in order to pay a low premium, then that would be the biggest mistake you can make.

Your car insurance will losses its stability and sustainability in the long run and in times of need like theft, vandalism, harsh wheatear or car crash to personal injury not having an appropriate coverage plan would cost you more than money sometimes life too.

Therefore, be smart get a coverage plan that provides long term security and seek different car quotes and those providers who are offering deals and packages to new clients or on multiple too expensive cars.

Mistake #2

Giving False Information:

At the time of buying a policy, some people might not reveal all the details or try to hide some of the truth to avoid higher premiums.

Some clients try to get those insurance claims or cheap discounts of some policy in which they might not be qualify.  For an instant

  1. Saying yes to NCB (no claim bonus) even they are frequent traffic violators.
  2. Not mentioning the actual model or type of your vehicle,
  3. Mentioning it as GCC (manufactured for Gulf regions) whereas it could be an imported vehicle.
  4. Or wrongfully stating that the driver was not involved in any accidents recently

This might seem harmless at the time but it will have an effect later on.

These false details could help you to get a lower premium policy but once you are going to make a claim after an accident, the truth will come out.

It should be noted that all insurance companies cross-match the details at the time of claim and reserve the right to cancel your car insurance claims in case of false information.

Therefore, don’t make this mistake otherwise your insurance will get rejected immediately.

Mistake #3

Making a Huge Deductible on Insurance:

Any policyholder has to pay an amount which is called deductible when he/she makes a claim in the coverage plans.

The amount depends upon the factors like ages, car model, nature of incident, etc. etc. The total amount ranges from AED 500 to AED 2000.

These deductibles do lower the car premium but if you’re paying those comprehensive deductibles which is not necessary for your car then it can disturb the core of your financial status in a day.

Therefore, evaluate the deductible so that in time of claim only deductible is paid by you that is important.

Mistake #4

Looking for Cheaper Season to Get Insurance:

One of the misconceptions of car protection policy is that there is the right season or time to get an insurance policy.

This is only wishful thinking. Instead of waiting for the right month or season why don’t you just keep an eye on online insurance websites or blogs that are give informative content on discounts and cheaper deals on claims and other related products.

Hence the right time to get insurance is when you got yourself a new car or your previous policy expires.

Mistake#5

Taking A long Gap of getting the Insurance Policy:

Thinking and then deciding on the best policy for yourself is great but taking a lot of time can cause an issue in your conditions.

If you got a car or it’s your car renewal time and you are taking time more than 30 days then for the insurance company you are labeled as high-risk vehicle drivers.

Therefore, they will charge your more auto premium.

Mistake #6

Not comparing car Insurance Quotes

Doing car insurance shopping can be more difficult if you don’t compare car quotes.

It should be noted this influence your premium a lot of you.

  1. Visit different car insurance forums online or offline and get a comparison list of all these car quotes in to.
  2. Once you figure out exactly what features you want to priorities in your policy, price comparison will make much more sense to you.
  3. Insurance spokesperson simplifies the search for you, by offering you quotes from multiple insurers so you can pick and choose as you see fit.

Therefore, if you not comparing car quotes then at that case you are giving an open invitation to the auto insurance representatives to trap your inexpensive auto protection policies.

Mistake #7

Violation of Traffic laws:

Violating traffic rules and regulations is not only a crime but also another big reason why your auto insurance rates go up.

The insurance laws highlight two categories of traffic violation.

  1. Minor violations – speeding, improper passing or backing, etc
  2. Major violations – driving under influence substance, felony, careless driving, etc.

Minor violations can be scrubbed from a driver’s record by paying a fine fee but major violations can involve court proceedings, a hefty fine, and even jail time.

The insurance provider conducts background checks and investigations of every client at the time of new motor insurance policies; as well as renewal. Finding bad records can let them charge a high premium on that individual due to the high risk of accidents.

Mistake #8

Looking for Insurance Company by Price Only:

Seeking the insurance providers on the bases of low insurance price or fee can be a good step but other related technicalities should be focused like customer service and informed representative to tackle our concerns.

In the ignorance of such matter by you can trouble you a lot if need urgent information or claims.

Therefore, look at all the criteria of car insurance before making any purchase.

Conclusion:

Avoiding car insurance mistakes can let you enjoy monetary saving and full protection of the vehicle.

Don’t wait for the right time or right price just get insurance discounts and cheap policy by just following the rules and getting your car insured as soon as possible.


Originally published Nov 07, 2020 14:36:00 PM, updated May 18, 2021

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