Avoid These Top 10 Mistakes When Purchasing Car Insurance
Written by Kritika
The process of purchasing insurance policies and paying online through insurance comparison platforms has been made easy with technology. Be wary of the mistakes listed below and avoid them in order not to make a costly decision.
Read on to know the top 10 mistakes people do when buying car insurance online.
Top 10 avoidable mistakes you should not commit when buying car insurance:
1. Skip doing the initial research when planning to buy a car insurance
The research process is necessary when purchasing any product. The internet is full of buyers and sellers and this provides a good platform for research.
The first thing you should do before buying insurance is to research carefully.
Consider these two important factors –
Rating of car insurance companies
Go to Google or to the company’s website and read customer reviews. It is an important source to learn about the company’s values. Including; advantages, level of services, disadvantages, customer stories and their experience with the company. Customer evaluation is the deciding factor in whether you want to complete the insurance purchase, or return to your drawers.
See the claims settlement rate
You certainly don’t want to pay your money to an insurance company that won’t settle your claim if your car is in an accident. Therefore, it is necessary to ascertain the level of claims rate with the car insurance company, which reflects the level of financial health of the company as well. Compare the claims settlement rate between companies, then choose the company with the highest rate.
2. Not comparing car insurance offers
Why not compare car insurance offers online before purchasing the policy? Comparing insurance offers is available to everyone online and for free, and it only takes you a couple of minutes.
For example, when you compare car insurance offers through BuyAnyInsurance, you will get many offers from the best local and international car insurance companies.
Follow these easy steps to compare a policy of your choice:
- Visit BuyAnyInsurance website
- Enter the correct vehicle and driver specification information into the insurance calculator
- Compare the benefits each company gives you
- Then compare car insurance quotes
- Choose the document that best suits your needs and budget
- Buy online with confidence and security
- Get your car insurance policy in less than 60 minutes
Golden tip: Don’t buy the first car insurance you come across, always compare offers!
3. Not knowing the difference between comprehensive and third-party insurance
This is one of the major mistakes to avoid when buying car insurance. Knowing what you are buying and the extent of cover it provides for you and others is key when buying a car insurance policy.
In simple terms:
Third-party insurance
It is compulsory insurance in the UAE for road driving. This policy covers third party damages as a result of an accident caused by you.
Insurance coverage includes –
- Physical damage to third parties inside or outside the vehicle
- Physical damage to others
You can buy this policy if you have a clean history of claims in the past. Keep in mind that you will not get any coverage for your car or personal injury. However, some car insurance companies now offer benefits that you can add to the third-party insurance policy, in return for an additional financial premium. Get to know her!
Comprehensive insurance
Comprehensive insurance provides coverage for third party vehicle damage and bodily injury in the event of a motor vehicle accident. In addition to covering your car damages. Comprehensive insurance is the best investment you can have, as you can add many benefits to the policy in order to get the best protection.
4. Not knowing what exactly is the deductible percentage in comprehensive insurance
You must know exactly what the excess amount is before the insurance representative asks you to specify it for registration in the policy. The deductible is the amount that you will pay first when claiming the insurance company for the necessary coverage due to a car accident. After that, the company will proceed to take the necessary procedures.
The deductible ratio lowers the monthly insurance premiums. It is one way to lower your car insurance premium when you choose a higher deductible on your policy. It is worth keeping in mind that you may end up paying more in the event of a sudden accident than if you had a lower excess for higher monthly installments.
If you are wondering why car insurance companies impose this deductible? Here’s why. Companies impose this percentage on customers in order to take responsibility and drive their vehicles safely, and to take all necessary procedures and safety measures.
5. Choosing basic insurance and ignoring certain good benefits
In light of the high cost of living in the Emirates and Dubai in general, and especially with the outbreak of the Corona epidemic in particular, you may also be tempted to choose basic insurance. That is, third party insurance that works to meet legal requirements, at the cheapest possible rate.
But the issue here is not only related to the civil liability of the third party, but rather to you! You are very important, you have to value and protect yourself, and for the sake of your loved ones who will suffer if you suffer physical and moral harm.
By choosing basic coverage you will not have the opportunity to repair your vehicle or cover your personal injury. You will get it under comprehensive insurance. In the worst case scenario, ask the insurance company if they will add your personal injury coverage to the third-party insurance policy, as an add-on for a specific premium. What is your opinion? Think deeply.
6. Not using anti-theft devices
The United Arab Emirates has recorded the highest rate of car theft among Arab countries for the year 2020, according to Al Mal news magazine . This is a rate of 5.9 cases of theft per 100,000 inhabitants. This rate is likely to decrease over time, however there is no harm in using security devices to protect your beloved car from theft. and to make the thief’s job more difficult or impossible.
The higher the risk of your car, the higher the insurance premium. The lower the risk, the lower the insurance premium. Tell the insurance representative what safety devices are in your car, so you can get a cheaper premium on comprehensive insurance.
7. Not asking about rewards, discounts, and free gifts
The competition among insurance companies is fierce, and one of the ways to get a larger share of the market is to make offers. Offers such as attractive discounts, free benefits, discount divisions, and more.
One of the major mistakes to avoid when buying car insurance is not digging out this information from the providers. With discounts and offers, the initial cost of getting a car insurance policy will go low, giving you value for your money.
And don’t forget if you are a good driver, you will get a no claim bonus, even if you change insurance company you can get the discount –
- 5% discount on no claims for a year
- 10% discount on no claims for two years
- 15% discount on no claims for 3 years
- 20% discount on no claims for 4 years
- 25% discount on no claims for 5 years.
Also, learn about the discounts offered by the insurance company, and what are the free benefits on a third-party or comprehensive insurance policy.
For example: BuyAnyInsurance offers many advantages of a third-party insurance policy –
- Complimentary driver, passenger and roadside service
- Customer service 24/7
- Additional discount vouchers of up to 3,500 dirhams
Getting a good discount on the car insurance policy will only cost you to ask the question, so do not hesitate and ask for a discount!
8. Not providing correct information to the insurance representative
It is extremely important that you share the correct information with your insurance representative if you are purchasing car insurance, or if you are making a claim. Insurance is based on mutual trust, and the company relies on the information contained in the insurance policy, and expects the insured to share information about the car and driver transparently.
Some tend to hide some information, or provide some misleading information in order to reduce the premiums due, or to obtain more coverage when claiming. Such as: not sharing correct information about your claims history, modifications you have made to your car, lowering the real value of the car in the market, attempting to repair previously damaged parts at the expense of the insurance company, and others.
All these practices are harmful to you, when the first error is revealed, your claim will be canceled, and you will be left alone with the burdens and damages of your car. On the other hand, you may unintentionally provide inaccurate or correct information. Avoid this as much as possible so that you will not be accused of fraud later.
9. Failure to renew car insurance in a timely manner
Car insurance companies often advise customers to renew their car insurance well in advance of the expiration date to ensure continuous coverage. Mistakes to avoid when buying car insurance include overlooking policy details and failing to renew promptly when the expiration date approaches.
When you receive the notice, write down in your mobile phone note when the car insurance expires. Then decide if you want to change the insurance company or renew it from the same company.
In all cases, you must renew the car insurance before it expires. You can buy the insurance two or two days in advance, so that the new insurance will automatically start valid as soon as the old insurance expires.
And because insurance is compulsory in Dubai and all Emirates, you cannot drive without car insurance for a minute. If the Dubai Police stops you without insurance, you will be subject to a fine of 500 dirhams, 4 black points, and a car impoundment for 7 days.
10. Not checking your car insurance documents properly
Buying car insurance online is as easy and fast as drinking a glass of water. You can buy the insurance policy in 2 minutes and get the policy in less than 60 minutes. However, there is an essential and crucial step that you must take after obtaining car insurance, which is to verify all the details mentioned in the document.
It is possible that there is something wrong with the document, even if it is small, which may cost you a lot later, such as your claim being denied, for example. Therefore, make sure of the details such as name, address, vehicle number, chassis and expiry date. If you find any mistake, talk to the insurance company and ask them to correct it immediately.
You’ve known the mistakes to avoid when Buying Car insurance now. In case of any query, feel free to contact us and we will be honored to be of service.
If you have any other questions, do not hesitate. Contact one of our experts from the BuyAnyInsurance team at the toll free number 800765429 .You email your questions to [email protected].
FAQ
If you want to save money, it’s a good idea to check out different insurance options to see if you can find better deals. Look for companies such as BuyAnyInsurance, with good customer service and strong financial ratings, to ensure you’re getting quality coverage.
Assess your needs and budget. Research reputable insurance companies. Compare quotes from multiple providers. Look for coverage tailored to new drivers. Consider factors like premiums, deductibles, and coverage limits. Check customer reviews and ratings for customer service. Ask about discounts for new drivers or completing driver safety courses.
If you provided incorrect information to your insurance provider, contact them immediately to rectify the mistake. Provide the correct details and ask for your policy to be updated accordingly. Be prepared for potential adjustments to your premiums or coverage. It’s crucial to address inaccuracies promptly to ensure you have the appropriate coverage.
The decision between third-party liability (TPL) insurance and comprehensive insurance hinges on your requirements:TPL insurance covers damages to others but not your vehicle.Comprehensive insurance covers damages to both others and your vehicle.Select the option that aligns with your coverage preferences and financial considerations.
Steering wheel locks, car alarms, GPS trackers, immobilizers, wheel locks, and kill switches are among the best options. Using a combination of these devices can boost security and deter theft effectively.
Read also:
How to Lower Your Car Insurance Costs in Dubai
Temporary Car Replacement in Car insurance
Benefits of Buying Car Insurance Online
Complete Guide to Medical/Health Insurance Renewal in UAE
Feel Free to Contact Us!
Originally published Mar 10, 2023 12:08:09 PM, updated May 13, 2024
