Car Insurance Basics—Understanding Your Coverage
Owing to the practicality of commuting, owning a car is no longer a luxury but a necessity. And as soon as you think about getting a car, whether it’s brand new or used, you have think about car insurance UAE. All vehicle owners need to get their cars insured before they can get them registered.
Now that the importance of car insurance is established, let’s get to the basics that you need to know before you get your car insured.
- Type of coverage
Car insurance are basically of two types – comprehensive cover and third party liability.
Comprehensive cover, as the name suggests, covers your car as well as the other’s in an accident. It also covers your car against theft, fire or damage. This makes comprehensive insurance more expensive than the third party liability plan. Third party liability covers only the other car’s damages caused in an accident. The premiums cost considerably less, but then you have to pay damage costs of your own car out of your own pocket. Also third party liability is an option for cars older than 7 years.
If you are getting a car on loan, most banks in the UAE mandate a comprehensive cover insurance over a third party liability.
- Vital factors that determine your premium
Your age, driving experience in years, car’s model as well as the extent of your coverage affect your premium considerably. It’s important to understand these factors well with the help of an insurance broker. You can also conduct research for online car insurance UAE to help you compare different options easily.
- Roadside as well as off-road assistance
Some car insurance companies in UAE provide on demand roadside assistance, whether you have a breakdown, flat tire or run out of fuel. Since the UAE is abundant with adventurous off road activities like dune bashing, it is imperative to check whether the car insurance plan covers that as well.
- Additional coverage
Whether or not you get a comprehensive cover, it is advisable to be covered with a separate medical insurance plan. Though the cost of medical treatment might be covered in case of an accident, long term injuries may not be covered, making it preferable to have a medical insurance plan that accounts for this possibility as well.