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10 Mistakes to Avoid when Buying Car insurance

Written by Kritika

Getting car insurance in Dubai and the UAE has become very easy, as you can complete the process of purchasing insurance and paying online through insurance comparison platforms , or insurance companies’ websites.

Despite this, there are some issues that you must be aware of before purchasing car insurance, and some red lines that you should not cross intentionally or unintentionally so as not to reap dire consequences later.

These are some of the mistakes that you may be making when buying a car insurance policy –

  1. Skip doing the initial research when planning to buy a car insurance

The shopping process is very necessary before purchasing any product, and nowadays you can buy any item in a few minutes through the Internet, including car insurance. Ultimately, the purpose of shopping is to get the best product in terms of quality and price, right?

The first thing you should do before buying insurance is to search carefully for car insurance companies or insurance comparison sites, which have become popular in Dubai and the rest of the Emirates. You must check the company’s license. You can do this by looking at companies licensed to work in insurance by the Insurance Authority .

You should 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 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.

  1. 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.

How to compare car insurance offers in easy and quick steps?

  • 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!

  1. Not knowing the difference between comprehensive and third-party insurance

How will you buy the best insurance and protection for you and your dear family if you do not know what is the difference between third party insurance and comprehensive insurance?

  • 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.

  1. 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. 

  1. 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.

  1. 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, and 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.

  1. 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 offer customers attractive discounts, free benefits, discount divisions, and more.

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!

  1. 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.

  1. 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.

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.

  1. 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.

If you have any other questions, we ask that you do not hesitate to contact one of our experts from the BuyAnyInsurance team at the toll free number 800765429 .You email your questions to info@buyanyinsurance.com

Originally published Mar 10, 2023 12:08:09 PM, updated Mar 21, 2023

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