First Car Insurance: A Complete Guide for New Buyers in Dubai

Excited to purchase a new car insurance policy? Or are you confused about what auto policy coverage suits your car requirement the most?

This uncertainty and change in perceptions are quite common when you get your first car or you’re new to a country like the UAE where it’s a mandatory obligation to get car insurance as soon as possible.

Getting your first car insurance indicates that you put the safety rules before anything else. These are signs of a responsible and roadworthy driver.

Unfortunately for new buyers, car insurance is considered an extra expense and a tedious process.

This is a major reason first-time buyers take up the first policy they are offered without looking at its pros and cons.

The wise move you can make during insurance shopping is always to do your homework first and never pursue any first auto protection policy you come across.

Today in the time of technology, everything is quite transparent and informative enough to make you a well-informed person in front of the insurance representative. Hence you don’t look naïve or easily trapped in selecting a high premium policy.

To make your life a little easier, BuyAnyInsurnace has come up with a complete guide and tips to help you make the right choices.

Evaluate the Coverage
Plans That Benefit your Car

You must be aware of your car specification and the coverage plan it will suit the most. Currently, in the UAE two types of insurance policies are offered to car owners.

Third-Party Insurance:

This is the most convenient coverage plan for car owners. It covers the basic requirement of a car for unforeseen events.

This coverage comes into action under the following scenarios such as:

1. If an accident is caused by you then third-party liability coverage will pay for the other person’s expenses. This includes any damage or medical bills.
2. Covers the cost of another person’s property damage you caused while driving
3. It also facilitates you getting claims during theft and fire of the car or property.

It should be noted that under third-party insurance the provider will only cover the damage you cause to another driver and their vehicle.

Under no condition will your car repair and damage be born by the insurance company.

Comprehensive Coverage Insurance:

This is full coverage insurance. It provides wide protection for your car’s minor to major expenses.

Those who get comprehensive coverage will get protection from

1. Theft
2. Vandalism
3. Fire
4. Naturaldisasters (like a hurricane or a tornado)
5. Fallingobjects
6. Damagedone to your car by animals
7. Acivil disturbance (like a riot that results in damage or destruction of yourcar)

However, there are some straight forward expenses that comprehensive insurance does not cover, especially when

1. Your vehicle gets damaged in a crash
2. Another person’s vehicle gets damaged in a crash
3. Your or your travel companions medical fees after an accident

However, this type of coverage in the UAE is comparatively expensive than third-party liability. Incidentally, if you got a brand-new car like a sports car then this is the best coverage plan for your car.

Read the Small Print Before
Signing Anything

Many people tend to ignore the small print when buying a new insurance policy.

Never make this mistake! You should pay attention to the terms and conditions, the small print, and ask questions if you’re confused.

These terms and conditions might look boring and ambiguous in nature but focusing on them can save you from paying hefty monthly premium fees.

For instance, you should understand what these policy conditions offer you.

1. Does your insurance cover the car accidental cost or breakdown/repayment expense?
2. Does your policy offer roadside assistance or you have to pay extra for this add-on?
3. What geographical location does your car insurance benefits work on?

Therefore, you should know what you are signing for.

Get Awareness About Distinct Add-Ons.

Car Insurance add-ons don’t mean extra money all the time it also means extra coverage you get in the time of accidental scenes.

These extra add-ons can protect you and
your car from bigger future expenditures that can disturb your overall car
premium.

It’s best not to dismiss any auto insurance add-ons without
considering the benefits and protections they may include.

Most essential add-ons that you should consider are:

1. Agency repair
2. Windscreen coverage
3. Uninsured & Underinsured Claim Add-on
4. Personal Injury Coverage

Learn Some of the
Insurance Jargons

The reason why these insurance terms and conditions are so confusing and monotonous is because of insurance jargon that we are unaware of.

Hence, it’s high time for fresh insurance buyers to brush up their jargon and get aware of these terms like

1. Deductible
2. Excess
3. No claims discounts,

And many more. It’s better to do your own research.

Therefore, look at the glossary of common auto insurance terms as it will help you to interpret them and understand them.

Must have Compulsory
Deductible

All policyholders have to pay a deductible when they make a claim in the coverage plans.

The amount depends upon the factors like ages, car model, nature of incident, etc. etc. The total amount ranges from AED 500 to AED 2000.

Typically, your car premium goes down if you pay a higher compulsory deductible.

Always Compare Car
Quotes

Never indulge yourself in car insurance shopping without comparing the car quotes.

For this reason, car quote comparison helps you to get better market rates when you buy the insurance policy for the first time.

Each car model and specification
have different rates and according to that insurance coverage plan is decided.

A website like BuyAnyInsurance helps its targeted clients to identify the best rates and sign a policy that gives them a suitable advantage.

What to Consider When Insuring Your First Car

Here are a few things that you should consider while insuring your first car:

Make and Model of your car

When your car insurance premium is calculated, your car’s make and Model play an important role. Keep this in mind even when you are shopping for a car.

The Coverage Type You Need

The coverage type that you will need depends upon your circumstances. Usually, states in UAE require car liability insurance. But if the drivers have leased the car, they will most likely need collision and comprehensive insurance.

Compare Car Quotes

Before deciding to buy a car, compare the car insurance quotes from different companies to get the best deal that suits your needs.

Ask for a Policy from Your Insurance Agent

After choosing the car, getting the vehicle identification number, and choosing the insurance company, you can finally ask your insurance agent to set up an insurance policy for you.

If you have not received any Vehicle identification number yet, you can still ask your insurance provider to set up an insurance policy with the information you have.

How to Save on Insuring Your First Car

Here are some tips for you to save on your first car insurance:

Shop Around

Before deciding to buy an insurance policy, it’s always a good idea to explore multiple policies. Get quotes from different companies and go for the best policy that suits your needs and budget.

Get the Coverage that Suits Your Needs

How much car insurance do you need? You can be overwhelmed by this question. An insurance agent can help you identify the best insurance plan that suits your needs and circumstances.

So it’s a good idea to consult an agent and get the coverage you need.

Look for the Discounts

Look for the discounts you qualify for. There are a lot of discounts available such as multi-policy discounts, new car discounts, and defensive driver discounts.

Maintain Your Credit Score

Most insurance companies consider the credit score of drivers while calculating the car insurance premium. Poor credit could lead to expensive quotes. That’s why it’s important to shop around for the insurance policy.

FAQ’s

When was the first automobile insurance?

Gilbert J. Loomis holds the distinction of being the first person to buy an automotive liability insurance policy in 1897, according to the Ohio Historical Society. The policy, which was issued in Dayton, Ohio, protected Loomis if his car damaged property or injured or killed an individual.

Why is first time insurance so expensive?

Young drivers have less experience of driving the car.It means that they’re more likely to get into an accident and file a claim with the insurance company. Insurance companies charge young drivers higher rates to compensate for the higher likelihood that they’ll file a claim.

Are newer cars cheaper to insure?

There’s no clear answer to this. Usually, the cost of your premium will depend partly on your car – generally the newer the car, the better its safety and security.

Conclusion:

Getting your first car insurance is as crucial as having a driving sense.

You must evaluate and seek the best choices available in the online and offline markets.

Altogether, this guide is made specifically for those fresh clients to remove their uncertainty and make them confident enough to make the right decision on time.

Read Also:

Your Checklist For Getting Car Insurance In The UAE

Driving Without Car Insurance? Things That Could Go Wrong

Secure & Cheap car Insurance in the UAE: Secret Revealed