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Most of us spend so much time and effort in learning about the latest car models, flashy colors, and innovative safety features and we love the process. But many of us know way too little about car insurance and all that it brings about.

The delight coming with the purchase of a new car will remain intact for a longer period if the car is secured with the right car insurance.  But buying the best car insurance in Dubai calls for the basic knowledge of how it works.

Understanding the significance of car insurance in Dubai,  policyhouse.com has compiled the most important tips to consider while buying car insurance policies.

1. Choose the most suitable plan

At present, in the UAE, there are two types of car insurance policies offered: third-party insurance and comprehensive cover. The third-party cover fulfills your legal liability for bodily injuries, death, or third-party property damages, in case you are involved in an accident. But it does not cover damages caused to your own vehicle. 

The benefit of buying a third-party cover is that it attracts a basic insurance premium. Whereas, with the comprehensive insurance plan, you get an extension of the third-party insurance plan. It offers protection for your car’s minor to major replacement or repair expenses as well. In case of an accident, it also covers the damages caused to the third-party as well.

Comprehensive coverage also provides protection from non-collision damages such as theft, vandalism, fire, natural disasters, etc. As the plan offers such extensive insurance coverage, the cost of this plan is higher compared to a third-party plan. In case you are having an old vehicle, you can opt for a third-party cover as the basic insurance cover which would be sufficient for the vehicle. Whereas, comprehensive coverage is the best option for new vehicles and expensive cars as it offers better coverage

2. Choose the best car insurance provider

Paying a significant amount for the protection of your car, the quality of service that you receive also matter while choosing a car insurance policy. With a plethora of car insurance companies in Dubai offering a wide range of plans, finding the right one can be a difficult task. Under this scenario, it makes sense to deal with reliable car insurance companies in Dubai that have a good reputation in the market.

Looking out for the claim settlement ratio of the company, as those figures can indicate how prompt the company is in settling the claims could be a deciding factor. It will help you to get a cashless settlement without any hassles.

With online car insurance services capable of completing the entire process in a matter of minutes and without physical documentation, you can make sure that the company also provides such online services. It can save a lot of time during policy renewals.

3. Check the inclusions

Rather than just agreeing on the terms and conditions and signing the policy document, it’s always important to check what is exactly included in the policy you buy for your car.  Not all policies provide comprehensive insurance coverage and therefore you need to check what parts of the vehicle do the policy cover and what is the maximum coverage offered.

Also, make sure to cross-check the inclusions; if there were any promised by the car insurance provider in the policy document. Always feel free to ask questions if you’re confused.

4. Check the exclusions

Just like the inclusions, it’s also important to check what isn’t covered by the policy, by going through the policy document. Understanding the exclusions, you will know the risks involved in the future and you can take necessary precautions to avoid them.

5. Choose the right add-ons

With buyers having different preferences, car insurers nowadays offer various add-on covers in order to meet their enhanced needs.  Even though it’s completely optional, you can opt for them, if your basic insurance doesn’t fulfil your insurance needs. Although it’s an advantage as you can customize your plan, it comes at an extra cost apart from the regular premium you pay for your insurance. It’s best not to completely dismiss any car insurance add-ons without considering the benefits and protections they may cover.

Most essential add-ons that you should consider are:

1. Zero Depreciation

2. Roadside Assistance

3. Return to Invoice

4. Engine Protection

5. Loss of personal belongings

6. Off-road cover

7. Personal Injury Coverage

6. Know the charges involved

Most of the policy buyers are not aware of the charges that are involved in their policy while buying a car insurance plan and they pay the premiums without even knowing about the coverage they receive. Also, without making a decision influenced by a cheap premium, always make sure if the insurance plan meets your requirements or not. Checking various details properly is also essential. Got through the document carefully as it will help you know about the policy coverage and you won’t have any confusion later on.

The most important thing to check is the sum insured by the policy; which is the maximum amount of coverage you can get from the car insurance company in the unfortunate event of complete loss of the vehicle. The amount assured will be clearly mentioned in the policy document and this value should be close to the current market value of your car.

7. Learn some insurance jargons

The reason for the insurance concept and conditions to seem complicated and monotonous is due to the usage of certain insurance jargon that we are unaware of. Therefore, it would be valuable, if you could brush up these jargons as insurance buyers and be aware of what they exactly mean. Some of the commonly-used terms are First-party and second party, Own damage, No claim bonus, Depreciation, etc. Doing research on your own into these common auto insurance terms will help you to interpret and understand them.

8. Check the validity

With insurance coverage expiring after the end of the policy term, every car insurance policy comes with an expiration date. It’s therefore critical to renew your policy before it’s expiry in order to enjoy the continued coverage. Insurance companies will not provide coverage for your car, even a day after the policy’s expiry and you will also be required to pay additional fees as a penalty to renew the lapsed insurance policy. Hence, always make sure to renew it before the due date for uninterrupted coverage.  Buying car insurance online can make it a lot easier to track renewals of your policy.

9. Increase your deductibles

While selecting your car insurance, you can typically choose a deductible; which is the amount of money you would have to pay before insurance picks up the tab in the event of an accident, theft, or other types of damage to the car. The general notion depending on the typical deductible range is that, lower the deductible, higher the annual premium, and vice versa.

10. Compare your Insurance Plans 

With many car insurance companies offering a wide range of plans, always make sure you compare car insurance plans from multiple insurance providers to get the best deal.  While the plans may vary slightly, it can make all the difference in the insurance coverage and premium. New-age technologies and the internet have made it easy to compare insurance plans online.

With various online portals providing information about car insurance plans, and various add ons, you can just scroll through and figure out your specific requirements and find the best car insurance policy for yourself and buy car insurance in Dubai As a streamlined approach to evaluating your ideal car insurance policy,  policyhouse.com has the tool to compare quotes of leading insurance companies in Dubai with a side-to-side comparison. Buyers can write down their specific requirements for the policy and create a customized policy for themselves.