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Avoid These Mistakes When Buying Car Insurance in the UAE

Written by Sahar

Car insurance in the UAE is mandatory by law which encourages buyers to engage in thorough car insurance comparison before purchase. Considering the rise in vehicular ownership and the steady stream of tourists into the economic hub of the Middle East a mandatory law regarding car insurance helps secure residents and visitors alike against motor accidents, roadside assistance, third-party liability, and any other incidents.

On a personal note car insurance is an investment worth making. A good insurance policy is cost-effective in the future. Regular upkeep and maintenance are consistent expenses but add to that the cost of accidental repair, medical bills in case of injuries during a collision, and the cost spikes up catastrophically. If the vehicle is uninsured these sudden costs can be devastating on your wallet, but car insurance enables you to save up in advance for any and all unforeseen expenses that can occur.

Yet buying car insurance in the UAE can be tricky, especially if you have no previous knowledge about premiums, policy, and other industry jargon. There are several car insurance providers in Dubai alone. How does one decide which to choose? Which policy will hold the most investment value for you? Are there any hidden costs that you should be aware of? All of these questions are valid and its best to keep the following in mind to avoid mistakes when shopping for car insurance in the UAE.

Don’t Go in Blind

If you’re new to the world of car insurance its best to get as much information as you can before making a purchase. Research the two types of insurance coverage available in the UAE (Comprehensive Coverage, and Third-Party Liability Coverage). Keep an eye out for articles in the news about new laws, and policy changes regarding vehicular insurance. Go a step further and look at company profiles of the car insurance providers you’re interested in. Talk to your friends, and colleagues who have insurance and get a clearer picture.

Being Unsure of What Suits Your Needs

Keep in mind, though, that what works for your friends might not work for you. Where Comprehensive Coverage envelopes almost all features that should be covered by a car insurance policy it can be more expensive. And though Third-Party Liability Coverage is more budget-friendly in comparison it only caters for the needs of those injured by you in the event of an accident but not for the damages and any other expenses you will incur. Be clear about what you want from your policy and how much you are willing to spend before buying car insurance.

Don’t Make Any Decision Before Conducting Car Insurance Comparison

We spend an inordinately long time comparing brands, and considering features before we buy a car. Why not with car insurance? Car insurance comparison can be tedious and time-consuming, but websites like Buy Any Insurance help you compare multiple providers and their policies on one platform. You can compare rates, features, services, and a lot more on a single website and make a more informed decision.

Don’t Assume a Higher Premium Means Higher Quality

It goes without saying that all that glitters is not gold. Higher premiums do not always guarantee the best service and likewise, lower premiums are not an indicator of poor settlement efficiency. Don’t fall for the ‘expensive is always better’ gambit. It might cost you more than just the premium in the long run. Research your options, and when it comes to car insurance in the UAE – compare, compare, compare!

car insurance mistakes
Mint.com

Don’t Withhold Information

Be expansive with the information you provide on your form. It is recommended to notify the basic data of every driver that will be driving the vehicle being insured so it does not become a factor in denying a claim later. Do not, under any circumstances, withhold relevant information even while conducting car insurance comparison. This can lead to at best car insurance being denied, at worst a claim being rejected when you’re in dire need of financial assistance.

Overlooking Add-Ons

It is common to assume that Comprehensive Coverage takes care of practically every factor but this is not true. Car insurance in the UAE offer add-ons that can enhance the premium but also provide coverage for factors not included in your basic policy. It might feel like a gimmick or a sales pitch, but it’s not. Don’t dismiss add-ons out of hand. Consider them carefully and in great detail before signing up for them if they seem worthwhile.

Not Determining a Providers Rate of Settlement Efficiency

Claim settlement can be a complicated procedure if the car insurance provider you choose has a company culture of delaying claims or going through needless checks and balances. Always go through a companies claim rate, and their settlement efficiency before choosing a provider because waiting for a claim can be an unnecessary source of anxiety when the bills are mounting up.

Opting for Higher Deductibles

Higher deductibles might make more sense in the short term but they can haemorrhage your finances in the case of a claim. Higher deductibles, essentially, means you pay lower premiums, but you’re responsible for a larger chunk of the coverage. Lower deductibles mean higher premiums but the company covers most of the coverage. Don’t fall for higher deductibles. They will cost you an arm and a leg in the future.

Opting for the Same Policy at Time of Renewal

Sticking with the same company at the time of renewal only makes sense if you are 100% satisfied with their service. In case of dissatisfaction, it is optimal to search for better pastures. Buy Any Insurance helps car insurance holders looking for a better deal conduct car insurance comparison and transition from their original company to one of their choice.

One more thing to keep in mind at the time of renewal is to ask for your No Claims certificate. This, as the name suggests, is given to policyholders who have made no claims in all the time they were insured. The No Claims certificate helps you get a discount on your premium rate whether you choose to stick with your current provider or transfer to a new one.

Take your time before making this big decision, but in that time avoid all of the above so the choice you make proves beneficial for you. To get started, hop on to Buy Any Insurance and make a start.


    Originally published Sep 24, 2019 11:07:11 AM, updated May 31, 2021

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