Home » Motor Insurance Checklist For The First-time Buyers: An Ultimate 2021 Guide
Written by Huma
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Motor Insurance in the UAE becomes a mandatory requirement when you get yourself a car. Buying a first-time car insurance can be tedious or soul searching process if you don’t have proper awareness about current insurance trends followed by the providers.
Have you ever wonder why buying Motor insurance is so important for you?
Well, if your vehicle is insured, the motor insurance will come to your help in the case of accidental damage to your vehicle. The insurance company whose auto-insurance policy you have availed will step up to pay for the damages to your vehicle including repair costs.
You’ll be paying the company an annual premium of course to receive the insurance benefit, but it helps in mitigating the expenditure you would have to face if you had an uninsured vehicle.
In short, you pay the company to come to your financial aid whenever your vehicle is involved in an accident, thus lessening your financial burden.
Hence , we have formed a list of many factors that you must consider if you are buying the insurance for the first time.
It is an ultimate guide that will serve as a car insurance checklist for first-time buyers in 2021. Let’s start with the types of insurance that you can get for your car.
There are two types of car insurance policies
You as a first-time insurance buyer should know all the available details of the insurance policies in the market.
Thus, your advanced research can save you the trouble of getting expensive and rigid policies.
The three vital insurance claim ratios you must understand are:
Claims data lets you analyze the insurer’s history for claims and its handling process. Keep in mind that relatively new companies in the market will have a low settlement ratio because claims that early could mean fake.
Thus, claims data does provide us with vital information and helps in making a final decision when choosing the product or the insurance company.
If you are dwindling between two insurers who offer similar benefits, then Claims data may help you seal the deal.
The word ‘third-party’ means that the primary beneficiary of this policy is neither the insurance company nor the original insured, but a pretentious outside member affected by the actions of the vehicle and thereby the vehicle owner.
Third-Party Insurance can be very beneficial and lucrative to the policyholder during unforeseen events that offer Legal coverage and total financial assistance. Hence, its a simple, seamless and quick process to acquire courage of your liking.
2. Standard third-party insurance covers:
Accidental damages caused by your automobile that has resulted in:
3. Salient features of the third-party insurance:
4. Exclusions in the third-party insurance
An insurance policy document is a legal contract that may contain technical terms that are hard to comprehend.
A thorough read of the documents before you sign the dotted line is essential if you want to avoid future confusion. Your policy document checklist:
Thus, ask an insurance expert to explain the various types of car insurance, terms and conditions, and benefits. For example, young drivers/owners get the best rates under car insurance for teens.
When third-party insurance fails to satisfy your need for the ideal auto insurance coverage, choose the highly-popular comprehensive insurance cover that takes care of you and your vehicle.
Therefore, opt for add-ons like zero depreciation cover, engine protector, accessories cover, medical expenses, etc.
Your insurance needs change as your life changes. Experts suggest that annual evaluation to review your insurance to assess if you need more or less coverage is necessary to make the insurance policy work for you.
Therefore, there are some events that require alterations to your existing insurance policy are:
Insurers quote the most appropriate and the lowest premium rates based on your credit-based insurance score. The factors determining an ideal credit score are:
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Hence, motor insurance quotes can be an eye-opener for the young driver and first-time insurance buyers.
With many road accidents occurring every day in UAE, you can never be too safe to guard yourself and your family against severe financial contingencies. Thus, personal accident cover is as follows:
Advantage of the personal accident plan is:
Bundled car insurance is for more than one car in a single household from a single insurance company. Therefore, this type of insurance will help you get car premiums at a discount.
A compulsory deductible is a minimum amount that you, as a policyholder, need to pay for each and every claim.
Hence, compulsory deductibles not always help in lowering the car premium though but knowing the in and out of these deductibles can be very beneficial.
A Voluntary deductible, as the name suggests, is not mandatory. Voluntary deductibles help in lowering the car premiums. This option allows you to share the repair costs in case of a claim, so it lowers the insurance premium.
Therefore, deductibles compulsory and voluntary are only provided in a comprehensive coverage policy.
The Insured Declared Value (IDV) of any car is the maximum amount that can be claimed under an insurance policy. It is the amount you get if your vehicle is stolen or gets totally and irreparably damaged.
Thus, the insurance premium is calculated considering the factors like the IDV, the model, etc. So knowing about the IDV of a car is important.
A No Claim Bonus is what you get as an additional cover if the policy hasn’t been claimed for the duration of one complete year.
Hence be smart and careful while driving.
Your insurance premium costs might be higher if you live in a metro compared to the insurance costs of the same model if you were living in a non-metro or rural area.
The car’s geographical location is taken into account in your premium.
Hence, the cubic capacity of the car’s engine also factors into car insurance premium costs.
Some vehicle parts do not get coverage under your regular auto insurance policy, following the modification.
Thus, it is always better to check with your insurance agent before customizing your vehicle.
An insurance company that provides a cashless option is a good choice as it helps in the case of emergencies and saves you from the hassle of running around for cash.
However, you should not choose an insurance company just for this factor while overlooking others, but if it provides a cashless option, then it is a big plus.
Checking for the number and the proximity of garages in your location is an important factor to keep in mind before choosing an insurance company.
More network garages in close proximity are always good. Thus, you can ask around and get feedback to make an informed choice.
One important factor to keep in mind while selecting a car insurance company is how soon it can provide you with the insurance coverage.
How fast the policy gets issued should also be taken into account. Today’s technological advances have made fast services possible.
Therefore, as a buyer, you should make sure to choose the insurance company that does not take months to issue the policy.
This could be considered not that important factor to look into a company when buying car insurance.
Hence, you can also check for a 24×7 customer helpline facility which would help you reach out to your company in your time of need.
This is a cost-effective and faster way to get car insurance than by normal paperwork. You can compare different policies online from one place before zeroing in on the one that best suits you.
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BuyAnyInsurance have also started chatbot, where you can get all relevant information regarding online insurance
Hence, it is paperless work, and after the issuance of your policy, you can access it from anywhere.
This guide can be used as a checklist for you in order to make sure that you are making the right decision.
Being a first-time motor insurance buyer means that you might not be aware of the many things that will help you in the process.
All you have to do is that you need to get the correct information. You can do this by researching the markets and different companies.
Originally published Jan 22, 2021 10:30:00 AM, updated May 04, 2021