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Traps of Car Insurance In the UAE

Written by Huma

Traps in car insurance can turn out to be your biggest nightmare.

One can agree to this point that insurance policies are not always easy bedtime stories, that at one go you understand all the terms and conditions and monthly car premium installation.

Dubai is the economic hub of the UAE. Not only does this boost the number of footfall in terms of visitors and working migrants but also the roads are getting busier and accidents are happening more often.

Therefore, the government had to formulate a law where every individual having a car should have auto insurance no matter how big or small the car you have.

This, in no way, was a bad decision. Auto insurance protects not only you but others driving on the road. However, it does give insurance providers an open season to trap unaware customers.

Some auto insurance providers, you will find, take full advantage of this and trap their customers through the use of complex jargon and pages of legal documents and lists of exclusions. It’s no wonder many buyers find them confusing and sign the policies without proper understanding. As a result, they end up with expensive and rigid car insurance.

We have compiled a list of 10 traps that most people should look out for when purchasing auto insurance in Dubai.

Trap#1

Driving Another Car:

One of the common misconceptions that everyone has is that if they drive someone else’s car and in case of any unfortunate incidents, the driver insurance provider will cover the expense if they have comprehensive car insurance policies. Typically, this permits you to drive under third-party insurance.

But that’s not the case all the time.

There are several strict legal regulations that
stipulated;

  • A driver who is under age 25 cannot avail this cover at any situation
  • A driver who is aged 25 or more can avail of cover but has to ask the insurance company to add this on in his/her policy. The driver usually has to give some extra payment.
  • His/her insurance provider will pay the definite amount and the remaining payment has to be paid by the driver.

Trap#2

Don’t get attracted by the Marketing campaign:

Be alert of all those extensive marketing content and campaigns done by the auto insurance companies that show you the world is a beautiful place with the help of their insurance service.

Do your research and learn by going through online insurance car quotes and understand the legal benchmark set by the UAE for auto protection law then make a valid decision.

Trap#3

When you hide your car history

It’s better that you come out clean about your car history, your driving license, etc. while signing the auto protection policies forms.

  • Some car insurance providers are very particular about their client’s background or driving history.
  • Also specify the driver details who will be riding the insured car, to avoid any significant issues in a time of the accident and getting claims

Some chances of hiding out any
information, particularly regarding the history of your car, may lead to
rejection of your claim at a time of need.

Trap#4

Car Premium and quality service:

If your monthly auto premium is high it doesn’t mean you will have good quality or high service/coverages from your auto insurance policies.

The same goes for low premium doesn’t always indicate you are saving a lot of money.

This kind of trap is established when the clients see the prices and make an estimate that high/low insurance fees determined the car premium and claims

But surprisingly it has nothing to do with that. Your car type and its requirement set the premium and the quality service it is needed at a given time.

Trap#5

Ignoring Add-Ons

Auto insurance companies are always working to attract the high target audience. That way they create serval packages and deals that can be very lucrative for you in the long run.

Before ignoring it just have a look at these supplemented value-add-ons and see the pros and cons it has for your car and of course for your pocket. These add-ons might boost up your protection and coverage plan.

Trap#6

When you get a high deductible.

Picking out the high deductible
in your insurance policy can surely reduce your monthly car premium but looking
at the bigger picture you put yourself in high financial risk.

In case of any car accidental damage, you may have to pay large amount of lumpsum monetary expense that disturbs and jeopardize your saving from cheap premium and it all goes to vain.

Trap#7

Saving money from auto insurance coverages

To get an ideal type of coverage plan for your car always evaluate the covers given in third party insurance and comprehensive one, to suit your car’s needs.

  • Third-party coverage means, an accident caused by you then one having liability coverage will aid the person to pay for the other person’s expenses.
  • Comprehensive coverage also is known as full coverage insurance cover your car from major and minor accidental events like vandalism, theft, repair and maintenance and etc.

Certain factors like your
financial criteria and what kind of driver also help you to choose your insurance
plans.

Trap#8

Having Incomplete Automobile History

Your car history matters a lot in order to fulfill the legal and insurance requirement and set car premiums.

Maintained complete documents of your vehicle manufacturing date, model and specification and inspection report before you make the payment. Auto insurance providers set high premiums for expensive cars like BMW and sports cars due to their high risk of accidental history found on these cars, and the expense it would take to repair them.

When you have the correct knowledge of the history and conditions of the vehicle you can make the right decisions regarding auto insurance policies.

Trap#9

Repair and Maintenance Cover:

Many insurance companies talk in circles. For instance, it’s wise to check the policy in case of any accidental damage of car repair and maintenance would be taken care of by the agency or outsider/non-agency.

Agency repair can be expensive and will automatically enhance your monthly car premium whereas opting for non-agency maintenance your premium rate will be cheaper.

Now, this depends upon you. Are you willing to trust
and take confidence in the internal agency or non-agency repairs?

Trap#10

Sticking to one Insurance Provider for a number of years

You yourself fall into this trap when you buy multiple
or revise your renewal insurance from one auto protection provider.

This makes your overall package expensive and rigid.

  • That’s why many insurance providers provide good deals to those clients who switch to their company.
  • You can be the real player and money saver genius, as you can avail of the discount after the one or 6-month time period of switching.

Learn from your mistakes and the knowledge gained over
the previous year and move on to better options.

Conclusions:

Our content always wanted our audience to be more
well-informed and beware of these significant traps that can make your auto insurance
policies very costly.


Originally published Oct 20, 2019 13:34:40 PM, updated May 05, 2021

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