Car Insurance and Its Benefits
Car insurance is the most important prerequisite for driving a car in the UAE. It is mandatory to have car insurance in the UAE. By law, it is illegal to drive a car without valid vehicle insurance. With lots of expatriates living in this nation, quality of driving varies. Having auto insurance is the safest way to protect you and your family members from mishaps that occur while driving. This article gives you a brief idea about car insurance and its policies.
Car insurance is a policy taken by car owners to protect them and their cars from getting damaged during unforeseen events such as accidents, thefts, fire etc.
Car insurance policies have three main levels. Each coverage policy varies from one organisation to another.
- The lowest level of cover is liability insurance which covers your legal liability to third parties; it covers another party’s losses or damages caused by you.
- The second level of cover is collision, fire and theft insurance which covers your legal liability, reimburses for your stolen or damaged car by fire or an accident.
- The highest level of cover is comprehensive, which covers the cost of repairing your car whenever accident occurs.
Out of this, comprehensive car insurance is the best and the most expensive one. As, it covers your own car from accidents, fire, explosions, theft and vandalism as well as it offers third-party coverage for death, injury to a third-party or damage to his/her car or property. The policy is too expensive when the car is new or a luxurious one.
Finding car insurance quotes is easier than earlier now. Quotes are available online and most insurance companies are also quick in mailing quotes. By approaching different insurance providers directly or through phone also help you to get quotes. When choosing a best insurance company in Dubai, it is often recommended to go with established brand names that are known for their products/services and own a significant part of the auto insurance policies satisfying all your requirements.
If your coverage limit is higher, then company pays more for you but simultaneously you need to pay higher premiums. Lowering your coverage limit is a good way to bring your premiums down and save money, even if you need to pay more out-of-pocket later, after an accident. You can increase the amount you want to pay as a deductible. This method is often used to save money on premium. Deductible is the amount that you, as a policy holder, need to pay before your insurer covers the remaining amount of your claim. Thus, if your deductible is 500 in your local currency, a claim of 3000 would need you to pay 500 while your insurer pays the remaining 2500. While high deductibles can cut down your monthly premium, but you must understand the risk related to it.
Proper car insurance policy always protects you and your car from unknown eventualities, because you never know when an accident can occur.