A question that’s as old as time. You might be asking this question as you’re a newly-qualified driver. If so, big congratulations from us! Or you might be an experienced driver but have always just bought the minimum level of insurance and not sure whether this is the best thing to do. Getting used to comparing and purchasing the right car insurance policy is something you want to take seriously and master adequately. Having asked the right question, let’s see if we can help you with the things you need to consider.
Third-Party Liability
This is the minimum insurance mandated under UAE legislation for motor vehicles. It covers the damage caused to the other party’s property and vehicle when an accident is your fault. Note that you are left to pay for your vehicle’s damage out of your own pocket. It is for this reason that this type of insurance is usually of a noticeably lower price in comparison to comprehensive insurance.
Comprehensive Insurance
Covers the damage to your vehicle and other vehicles involved in an accident in which you are at fault, and any accident where there’s no third party, such as hitting a tree! Of course this has a higher premium, and you’ll need to pay an excess (click here to know what an excess means) every time you claim for an accident that is your fault.
You need to consider:
1. Comprehensive cover may include other perks that protect you such as theft of personal belongings in the car or payment towards medical bills for the car passengers. Other valuable benefits include services such as roadside assistance or car hire for when your vehicle is getting repaired.
2. If your car is relatively expensive or new, you need to seriously consider comprehensive insurance, as repair costs would be significantly higher and could be something you could not afford yourself. Paying a few hundred extra dirhams could potentially save you thousands so this is an important point.
3. With a vehicle that’s only one or two years old, it is advisable to get a comprehensive plan with agency repair, so you don’t void the warranty on the car. Many manufacturers will state that only their approved dealerships are authorized to undertake work on the vehicle to maintain their standard warranty so check with your auto dealership before arranging your insurance.
We know buying insurance for the first time might seem intimidating since there are lots of different additional options to pick from but that’s why we at InsuranceMarket.ae have highly experienced and friendly insurance advisors that are willing to leave no question of yours unanswered.
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