In a country like the UAE, most people depend on their own vehicles for transportation due to various reasons. Although the public transportation system is quite efficient in the country, with safer roads and reasonably priced cars available in the market, most people opt to have their own vehicle as they are more convenient.
With the number of private vehicles on road increasing day by day, car insurance brokers in Dubai are now bringing in newer policies that cover various aspects of buying and using private vehicles in the city.
While there is plenty of insurance offers available in the market, it is important to have clarity about these policies before choosing one for yourself. A thorough inspection of the policy document will help you understand what all is covered in any particular policy and the risks associated with them.
In this article, we are discussing the 10 cardinal rules of buying vehicle insurance from car insurance brokers in Dubai.
Rule 1: Vehicle Evaluation
Prior to getting insurance for your vehicle, you must get a proper valuation for the same. Your car is evaluated depending on parameters like age and its overall condition. As you can easily guess, newer vehicles have low depreciation value and therefore are evaluated better. On the other hand, older vehicles have high depreciation value, which leads to low evaluation.
In short, the coverage offered to your car depends upon its current market value. A trusted insurance broker can help you a policy that gives optimum coverage for your vehicle depending upon its evaluation.
Rule 2: Finding Your Fit
There are two basic types of vehicle insurance policies available in the market. These are the third party coverage and comprehensive coverage. In layman terms, the third party insurance will cover legal liabilities for bodily, death and third-party damages in the event of an accident. However, it doesn’t cover the damages incurred on the vehicle. Logically, third-party insurance policies are a perfect fit for old vehicles with high depreciation value.
The comprehensive coverage is an extension of third-party policy, which covers the damages to the vehicle also. This is why most people who buy new or luxury cars go for a comprehensive policy. As expected, this policy is costlier than third-party insurance.
Rule 3: Compare plans from different insurance brokers
There are a lot of insurance service providers in the city who can provide varied policies for your car. However, you can only find your best fit through a thorough comparison of different policies from different providers. The differences might be very small, but it all comes down to the insurance coverage and premium and what works for you.
Rule 4: Selecting your car insurance broker in Dubai
When you are selecting your insurance broker, it is important to look for reputed service providers. At the end of the day, what matters the most it the service. Lookout for the settlement ration of the company, as this gives you a good idea as to how fast and fair they are in paying back the insurance money. Reputed insurance companies offer quality service and cashless settlements with less hassle.
Rule 5: Sum insured value of the policy
When you buy a car insurance policy, the most important thing you must check is the sum insured value of the total monetary coverage available for your vehicle in the event of its total destruction. If this value is closer to the market value of your car, then it will be quite useful in the long run.
Rule 6: Policy Inclusions
Cross check your policy coverage and inclusions before buying it to make sure that it includes everything you need for your car. While most reputed policy providers are transparent in their services, its never wrong to double check.
Rule 7: Policy Exclusions
Just like the inclusions, the exclusions are also important. Understand where your policy draws the line and does not pay. Some of the most common policy inclusions include vehicle accidents that occur when the driver is under the influence of alcohol. Other exclusions include geographical restrictions. Make sure that you are well aware of these exceptions for no future surprises.
Rule 8: Availability of add on covers
Even if you are not going in for a comprehensive coverage plan, there might be other add on covers you can add to your policy as needed. These add ons allow you to customize your plan according to your vehicle usage.
Rule 9: Double check your details
Before you submit your policy document, ensure that all the details you provided are correct. If your policy document doesn’t match your claim form, your claim will be rejected without further questions.
Rule 10: Be mindful of the policy validity
Car insurances in the UAE come with an expiry date. As a policyholder, it is your duty to be mindful of the validity of the policy and renew it on time to enjoy its benefits at all times.
If you are on the search for car insurance brokers in Dubai, contact us today to learn more.