How NOT to get stuck with the wrong car insurance

by / Comments Off on How NOT to get stuck with the wrong car insurance / 26 View / November 11, 2018

If you are a car-owner in the UAE, you presumably have an insurance policy on your vehicle. But what if you are stuck with a policy that is more of a liability than a benefit?

Since you pay a sizeable sum on insurance policies, it is in your best interest to ensure that the money is being spent on the right service. The Souqalmal.com team has rounded up six common mistakes you must avoid when buying a car insurance policy:

Going with the cheapest option

It’s true that a simple third party cover can do the job since that is the minimum level of cover mandated by UAE law, but is it really enough? Consider a scenario where you get involved in an accident and your car gets severely damaged. Yes, your insurance firm will cover for damages to the third party but what about your own vehicle? You will have to pay an exorbitant amount on repairs simply because your “basic” insurance did not cover the car. Opting for the cheapest option may seem lucrative at first, but the decision is bound to rear its ugly head sooner or later.

Buying a very costly policy

Be careful not to be penny wise and pound foolish. If your insurance premium is making a sizeable dent in your budget, you need to take a relook at your policy. For instance, it’s okay to opt for a basic cover if you don’t drive that frequently or own an old vehicle. Plus, you must get rid of unnecessary add-ons that are not of much use to you.

Not exploring multiple options

In the age of online shopping, we are used to comparing the price of a single product on multiple sites to get the best deal. Apply the same methods while looking for your car insurance policy. Getting quotes from multiple insurance providers can make your decision much easier. For instance, on Souqalmal.com, you can easily compare as many as 15 car insurance quotes within minutes and get your policy within an hour.

Paying a high/low deductible

A deductible is the amount you commit before the start of your policy to cover your end of the liability in the event of an accident. Usually, the higher you pay as deductible, the lower your premium will get. Now, you are left with two choices – pay higher premium or shell out more money during an accident. Explore the available options to arrive at the right decision. If you are still unsure, seek the opinion of an expert.

Understating or overstating your car’s value

When you apply for a policy, your insurer would seek to know the estimated cost of your car. Remember, you must always provide an accurate estimation of your car to avoid ending up with a wrong insurance cover. Giving an overestimate to the insurer will lead to an expensive policy with unnecessary features while declaring an underestimated value will rob you of several insurance benefits.

Buying insurance from the car dealer

Most of us find it convenient to opt for an insurance policy offered by the car dealership itself as it saves a lot of groundwork. But keep in mind that the dealers will only upsell policies offered by their preferred insurance partners. In order to get the best value, the onus is on you to get quotes for a similar policy from other insurers.