The most important aspects of car insurance
Before the car can be registered at the registration office, another important step has to be completed: Car insurance is mandatory in the UAE by the insurance law. If you do not have it then you can only drive on closed and private land. If a vehicle is used without car insurance on a public road, the offender can expect a prison sentence of one year or a corresponding fine. What criteria should be considered when looking for a suitable car insurance, what does partial and fully comprehensive insurance mean, whether a deductible and workshop connection is worth it for you and what you should look for prior to signing the contract, can be found in our guide. The insurance agency software will generate the premium price from the details your agent types in. Special attention should be paid to the cost of the insurance premium and the coverage level, and the total amount of insurance payments. In principle, making a decision for the appropriate car insurance is a complex matter in which many different factors play an important role. If you’re after hot shot insurance policies to ensure your equipment is going to be in safe hands then, we have provided more details below.
Three forms of car insurance
Along with the mandatory car insurance, there is the partial and the full comprehensive coverage insurance. The latter are both voluntary and differ from one another in the amount of covered damage. The partial comprehensive covers vehicle damage caused by fire, explosion, theft, wild animals, marten damage, glass breakage, short circuit and force majeure, but additional damage types are included in the full comprehensive. Among these are, for example, vandalism, hit and run, or a self-inflicted accident. The car insurance is mainly meant for the victims so that they get compensation if the injuring party has little capital.
The decision as to whether in a particular case a partial or full insurance is better cannot be easily answered. In principle, it should be ensured that the insurance coverage corresponds to a reasonable extent to the age and value of the vehicle. The rule of thumb is, that after four years the fully comprehensive insurance should be converted into a partial coverage, so that money can be saved. It is true that partial coverage is cheaper than a fully comprehensive insurance in most cases. If the insured car despite being older than four years have a comparatively high residual value, it has to be recalculated. One exception is if you have already completed a fully comprehensive insurance and have driven accident free for many years. In such cases, it is worth it to continue with the fully comprehensive insurance, since the corresponding premium, i.e. the insurance contribution, with every accident-free year decreases, while remaining the same in the partial coverage.
Car insurance: premiums and its pitfalls
Companies such as One Sure Insurancewill spend time going through the application form for an insurance policy with you. The insurance premium shows that selecting the right car insurance is a complicated matter. It is well known that being accident-free for a long period ensures a significantly lower premium for the holder. This is shown in the claims category. A novice who has just received his driver’s license is assigned the claims category 0. In contrast, a driver who has remained accident-free for 25 years is assigned the claims category 25. The result for the beginner, an amount of 230% in contributions, while the experienced drivers only have to pay 35% of contributions. The following list shows some factors that are important when creating the costs for the car insurance premium:
> Objective risk factors:
- Type class (individual risk of accidents according to annual loss statistics)
- Engine output
- Date of first registration
- Usage
> Subjective risk factors:
- Regional Class (probability of damage according to regional aspects)
- Residence, profession and age of the insured
- Annual mileage
- Claims category
- Duration of driving license
Note: The listed features vary significantly between the various insurers, so an exact list of all the criteria is not possible.
The sum insured for the car insurance
The sum insured is the amount that the insurance company must pay in case of damage. This amount depends on the type of damage. A distinction is made between personal injury, property damage, including damage that covers neither the one nor the other. If there has been a personal injury, the amount is often higher than the flat-rate minimum cover. For this, one should therefore also have an additional insurance and increase the coverage level to 400 million dirhams or an unlimited amount. Therefore, it is extremely useful prior to getting an insurance to think carefully about which damages should be covered.
The cost of insufficient coverage in case of damage should be clear. This value can increase if there is an accident with several cars, and serious injuries for those involved also result in costly victim pensions. This can mean financial ruin for many motorists. It is therefore all the more important to be aware of all that is included in the car insurance and to protect yourselves accordingly.
Tip: Put the coverage higher, to protect yourself from third party claims.
Online calculation of car insurance
It can be quite helpful and is advisable to get advance offers for car insurance online. This gives a first overview of the potential costs. However, if a car insurance is bought directly online, then you need the car’s manufacturer and model number. Frequently, however, it is not shown online as personal information such as name and address are required so that the binding offer can be sent.
Note: SellCarGetCash.com does not offer legal advice, nor should this text be considered a legal opinion. Always consult with a lawyer, before entering agreements. This guide should merely be read as tips to the best knowledge of the editing team.