Top 5 Factors to decide on Vehicle Insurance

Top 5 Factors to Decide on Vehicle Insurance in UAE

A good car insurance plan will help the owner to claim coverages in events of damages or loss. As per UAE law, it is mandatory for every vehicle owner to have at least a third-party insurance cover.

Proper research on various vehicle insurance plans and the coverages offered can help you to select the most appropriate insurance plan. We outline the key factors to keep in mind while deciding on a vehicle insurance policy.

Reputation

– The reputation of the insurance company is an important factor that you must consider when buying a auto insurance policy.

– A vehicle insurance company that holds a good reputation in the market has higher chances of delivering its promises when compared to the lesser-reputed companies. Thus, opting for a reputed insurer that enjoys customers goodwill is a wise choice.

Coverages

– The extent of coverage provided to the policyholder is the main reason for obtaining an insurance. It is recommended to always evaluate and compare the coverages offered by different plans before finalizing an insurance policy. The coverages can drastically differ depending on the type of plan and among various insurance providers. The coverages you choose will also affect the cost of your insurance premium.

– A basic third-party vehicle insurance policy covers only third-party liabilities – property damage, physical injury and death caused to a third party by an insured’s vehicle, whereas a comprehensive policy provides coverage for own vehicle damage including third party liabilities.

Insured value

The insured value is what the insurance company will pay if your vehicle is stolen or damaged beyond repairs.

It is the current market value of the vehicle calculated after deducting the depreciation amount. It is a crucial component that determines the amount of compensation.

Network garages

– The list of garages under the network of your insurance company provide repair services (up to the sum assured in the policy) during the tenure of your policy.

– At the time of buying a car insurance in the UAE, you should verify the list of garages covered under the network. Ask the insurance company to mail you a list of the garages and look for insurers with maximum network coverage present in their list.

Claim Settlement Ratio

– Customers should also check the ease of process for settling claims and the claim settlement ratio, which is the percentage of insurance claims settled by an insurer compared to the total number of claims received.

– It is not advisable not to go in for an insurance company with a poor claim ratio.

Always consider the above factors before you decide on a vehicle insurance plan so to you enjoy a hassle-free experience at the time of  claim settlement.

To have any more of your insurance queries answered and to know the covers you should include in your vehicle policy; get in touch with our friendly team of insurance advisors who are ever willing to help you.