Looking for the best car insurance can be a daunting task. There’s so much to consider and a lot of jargon to filter through: excess, legal cover, add-ons, no claims discounts, third party liability, comprehensive — it’s enough to make your head spin.
Insurance comparison sites have made the task a lot easier — you can get car insurance quotes from a range of insurers in one place. However, it’s not as simple as choosing the cheapest quote from these sites. No two policies will be the same. You’ll need to compare the benefits of each and work out if some are worth paying a little more for.
To help, here are five dos and don’ts that will help steer you in the direction of the best policy for you.
This is a crucial decision to make and may be the factor that makes the biggest difference to the cost of your car insurance.
Here’s a brief guide to what the difference between comprehensive and third-party cover is.
In most countries, including in the UAE, third-party liability cover provides you with the minimum insurance cover required by law. It allows another person (the third party) to make a claim against your insurance policy if damage is caused to themselves, their vehicle or their property in an accident that is deemed to be your fault.
However, you are not able to make a claim yourself on this policy. In other words, you must pay the cost of damage to your own vehicle or property or medical costs for injuries in the event of an accident that is your fault.
Comprehensive car insurance provides the same cover for a third-party but also allows you to claim costs for your own medical expenses and damage to your vehicle or personal belongings within the vehicle. It will also cover for a range of other situations, which often include windscreen damage, breakdown, and legal expenses.
Third-party liability insurance provides significantly less coverage, so it is usually cheaper. If you’re looking for insurance on a budget, however, don’t assume that you will save a lot by taking this option. It is still worth getting quotes for comprehensive cover, too. You may get a pleasant surprise and find a comprehensive policy at a similar cost to third-party only.
Not all insurance policies are created the same. If you have decided to purchase a comprehensive policy, you’ll need to compare the coverage according to your priorities. This will vary from driver to driver. For instance, some drivers will want to consider off-road driving cover whereas this may be entirely unnecessary for others.
The best way to approach this is to decide on the maximum price you would like to pay. Then, using an insurance comparison site, research what options are available within your budget. Put these options in their order of importance to reveal which policy provides the best coverage for you.
Remember that, in the event of you needing to make a claim, you’ll be glad you didn’t prioritize price over coverage.
It’s really important to be absolutely honest and truthful with any potential insurers. Missing information can even mean that your policy is invalid. Make sure that you supply the necessary information when it comes to accident history, driving convictions, and previous claims, and bear in mind that background checks will be made.
Don’t over or under insure your vehicle either. It’s important that the insured value of your vehicle is correct and that any modifications made to the vehicle are made known to your insurance company, too. Problems with under or over insurance can lead to disputes and delays in claims being processed.
We all want the best possible coverage for the best possible price. Thankfully, there are ways to reduce the cost of our premiums without compromising on cover.
First of all, be sure that you are utilizing any no claims discount you may have accumulated. Your no claims discount will build each year that you do not make a claim on a policy. Look at it as a reward for safe driving. In the UAE, you may get a discount of up to 20 percent.
There are often other discounts available with insurers. If you have more than one vehicle in your household, you may find it cost-effective to get a multi-car discount by insuring all your vehicles with one insurer. Or, if you hold other insurance policies such as homeowner’s or life insurance, then look to see if you can get a discount for using the same insurer for these. These are often called ‘bundling discounts.’
So, really, there’s no need to feel like you can’t see the wood for the trees when it comes to car insurance.
Whether you are looking for insurance for your existing car, a new car, or a new-to-you used car, follow these basic tips to keep you on track. They should go a long way to ensuring you are legally covered with the best possible protection for you, your vehicle and your belongings, and for the right price, too.
Erin Daniyel is the VP for Revenue Operations at Rubicon Project and spokesperson for Compare Dubai, an online comparison portal which provides customers with a one-stop platform to compare insurance quotes offered within the UAE. Compare Dubai delivers quotations from a number of insurance providers covering a range of products, from Car Insurance to Motorbike, Yacht and Boat, Medical, Life, Business, Pet and Home Insurance.