As an owner of a car in Dubai, you will have to mandatorily insure your car every year and each year you may perhaps try to secure the best premium and coverage from the many insurance brokers and companies operating in the market. Many will also send you quotations but in varying formats and emails and it might become quite confusing for you to correctly identify what you require and what you need to negotiate for to be incorporated in your quotation/policy.
The market has developed in a manner that every other company will try and quote the lowest premium whilst compromising on the level of cover. Some rare few however may not, and be absolutely transparent and honest with their customers. Hence, it is crucial that the buyer does not fall for the frequent mis-selling and correctly point out the discrepancies in the quotations.
I have therefore prepared a list as well as the explanations of some of the things that you must keep an eye out for:
1. Premium: This term is synonymous to the price of any product purchased. In other words, this is what you will have to pay when you buy an insurance policy and is normally a one-off cost per year.
2. Excess: This is what you will have to pay if there is a claim and/or an accident at your fault, as long as it is an irrecoverable claim. Any amount over and above the excess will be paid by the insurance company. You will however not have to pay any excess if it is a recoverable claim – i.e. you are not at fault and your insurance company can recover the amount of claim paid from the third party’s insurance company.
3. Car value: Always check that you are insured for the correct value of your car. Some may depreciate it more than what you would expect just to bring the premium further down. Additionally, some may not be aware of the correct value and use the market value at the time of the quotation. In order to compare various quotations from different companies, you must first check that the value of the car is kept the same – else it will not allow for a like for like comparison.
4. Agency repairs: Check, and check again if you have been quoted with or without the agency repairs. If you car is fairly new and high valued, then you are better off asking your company to revise the quotation to include the agency repairs. This simply means that your car will be repaired at your car manufacturer’s workshop, not at the insurance company’s dedicated garages. This usually comes with an extra cost for a third year registration, whilst it’s either free or comes for a very minimal cost for the first two years of the car’s registration.
5. New car replacement: Normally, all insurance companies will offer a cover for new car replacement for the first 6 months. This means that if you car becomes a total loss/cannot be repaired, then you will be compensated in terms of a replacement car, as long as the total loss occurs within the first six months of the policy. However, again if your car is significantly expensive and new, you are better off asking for the same cover but extended for the first 12 months of your policy.
6. Driver and Passenger Accident Benefit: These two covers are optional and come with additional cost. These covers compensate the driver and the passenger up to a certain amount for death or bodily injury caused due to an accident.
7. Windscreen cover: Not all insurance companies offer a windscreen cover, where the damage to the windows or windscreen is the only damage to be repaired. It is certainly a handy cover and something that you must always ask for before signing up for the insurance.
8. Protected no claims discount: This is also an optional cover and very useful to have if you have had no claims for the past three years or more. The last thing you would want is a higher premium the following year simply because you had a small claim. This cover will protect your no claims bonus which would enable you to get a significant level of discount on your car insurance premium every year.
9. Limits: There will always be limits imposed on several covers mentioned on your quotation/policy, such as on personal belongings, third party property damage, emergency medical expenses, etc. If the claim is over and above the limit allowed, then the insurance company will not pay 100% of the claim – they will only be responsible for compensating up to that limit.
Hope this helps you carefully analyze, compare the quotations and pay for only what you buy. For further assistance you may contact Alfred.
[Image Source: nowellandrichards.co.uk]