Here are a few frequently asked questions about car insurance with quick and easy answers:
- What is the difference between renting a car for your pleasure or renting a car to use because of an accident?
The rental vehicle is usually paid for by the insurance company. The pleasure rental is paid for by you.
- Why are the rates for young men usually more than young girls?
Men usually show off a lot more than the girls do and rack up more speed tickets and accidents. That being said, woman drivers are getting more traffic offenses than ever. Depending on the Country, distraction offenses are rising on cell phone use.
- Why is a Ferrari so expensive to insured?
Price, make, model, all the accessories and the top of the line materials used for each and every car.
- Tell me what is the difference between an Insurance Agent and an Insurance broker?
A broker has many companies that have access too, an agent works directly with one Company.
- What is the difference between a CSR and an Insurance Broker?
A CSR usually works in the office writing new business and assisting client with questions. An Insurance Broker does basically the same job, but they are on the road most of the time looking for business outside the office.
- What’s the difference in rates if you are a young driver and don’t take a driver training course?
The course itself is around AED300 and up.
A young driver in the first year of being licensed may have to pay AED3000 with no experience or no driver training.
A young driver in the first year licensed with driver training would probably pay $1500. There are other factors however, just this one example, pays for the course the first year.
- Who sets the rates, the CSR, The Insurance Broker or the Insurance Agent?
None of the above. Insurance is regulated by a Government Authority. The people above must use the rates set by this rates approved.
- What is the rate difference between a 2 door and a 4 door vehicle?
The 2 door models are normally higher as they tend to be more of a sporty design which young drivers are attracted to buying.
- What is the difference between an uninsured driver and a person being under insured?
Uninsured is when there is absolutely no insurance on the vehicle. Minimum amount required to drive. This is a problem if you are involved in an accident with this person and your injuries and damages exceed the coverage carried by the third party.
- What happens if I have tickets for speeding or any other driving infractions on my license?
Depending on the number of tickets, the company could charge you a higher premium.
- What is the difference between the lessee shown on the policy and an lessor?
If you are leasing a vehicle from a dealer, the lessee is you, and the lessor is the Company leasing you the vehicle.
- On an auto application it asks ‘has the vehicle been modified’. What does that mean?
If you have modified your vehicle, as an example, put in a higher HP of motor, or put the off road tires on it, or changed the vehicle from way the original vehicle was built.