Whether it’s your first time buying a vehicle, or you own multiple vehicles, car insurance is always an important matter. Besides reducing your overall costs and providing safety, there are penalties for driving with no insurance. Mostly, it takes some time to research and some experience to know exactly how to choose car insurance and what would work better for you.
By learning about the fundamentals, you can eliminate contenders and find a suitable option. As you learn more about differences between types of insurance, you start reducing your costs as well. Here at Lookinsure Mag, we will guide you through this journey, helping you pick the best car insurance possible in the UAE. Keep along with us!
Frequently Answered Questions
1: How to choose the right car insurance?
In order to find how to select car insurance, you must first determine your needs and priorities. By doing enough research and comparing options, you can find the insurance plan that is most suitable for you. An insurance plan contains different types of coverage, premiums, policies and flexibilities.
2: Why do I need car insurance?
Having car insurance is mandatory, and its absence leads to receiving penalties. Plus, it is crucial to have insurance in case of any accident. Insurance helps pay for the costs of any accident happening to you, your vehicle or even another person’s property due to an accident caused by your car.
3: Which type of car insurance coverage is more necessary?
Liability or third-party coverage is the most essential type of car insurance coverage. However, collision insurance is almost just as important.
4: What is the penalty for driving without car insurance?
A 500AED fine and 4 black points on your driver’s license, and the probability of seizing your vehicle for several days.
5: Can I transfer car insurance in the UAE?
As long as your insurance is valid for more than 9 months, you can check with your insurer whether you can transfer car insurance it to the new owner or not. However, if transfer is not possible, you can ask for a refund.
6: Am I eligible for car insurance in the UAE?
To be eligible for car insurance in the UAE, you must be a UAE citizen or resident, have the minimum age of 18 or the maximum age of 65 and hold a driver’s license for at least 1 year before applying.
Key Takeaways: How to choose car insurance
Lookinsure is all about making the best of your time and money; so, here’s a short version (TLDR or Too Long, Didn’t Read) of all the points on how to choose car insurance.
1: Insurance Provider
Understand the difference between policies so as to not overspend or underspend on your insurance. Also make sure the insurance provider you choose has flexible options and offers high-quality customer service.
2: Your Circumstances
What kind of driver are you and what sort of coverage you might need? Different types of car insurances exist to accommodate these questions. So, choose quotes that offer the right coverage.
3: Details of Each Insurance
Some details and add-ons might sound insignificant but come in handy later on. Things like no-claim bonus or uninsured motorist, if considered in the long term, can have significant financial effect.
Key Factors for How to Choose Car Insurance
You may be wondering, how to choose the best car insurance you possibly can? Well, the first step is learning about the key factors in order to choose a good insurance policy. Also consider checking the comprehensive vs third party insurance to get a detail of their differences in all processes. Whether you use your car to drive only on the weekends, or you’re a daily commuter, you may require different types of car insurance. We suggest you read car insurance buying guide before you finalize any purchase to save on your car insurance while getting the best deal for you. Here are some main elements on how to choose car insurance policy:
1. Correct policies
When purchasing your first car insurance plan or switching to a new one, there are plenty options at your table that involve different types of policies. By the way, if you’re living in Dubai or go there a lot, try finding a quote from car insurance companies in Dubai to have an easier process.
For instance, some companies have higher coverage limits such as accidental damage, support for your luxury vehicles, provide premium services to those who need, and more. Therefore, the company’s policy is amongst the most important factors on how to buy car insurance.
2. Providing coverage flexibilities
A particular insurance plan may not be suitable for all types of drivers and vehicles, therefore, a company that offers different types of coverage plans is always a better company. Of course, who wouldn’t like to know how to get cheap car insurance. Check out our guide for the most practical tips.
According to your needs, your coverage plan may differ. Coverage is amongst the most important factors when you start doing research on how to pick car insurance. Also don’t miss the guide on factors that affect car insurance premiums since cost of car insurance partly depends on the driver type.
3. Customer service
Before you finalize your decision, looking through the company’s customer support section is crucial. Providing 24/7 customer service is a great competitive factor, since it comes in handy for most customers.
4. No claims discount
The NCD, also known as the No Claims Discount or No Claims Bonus, works as a reward to safe drivers. Different insurers offer a variety of discounts as a policy, in order to motivate you not to receive any claims or reduce the amounts that you do.
This time, when you ask how to choose auto insurance that actually provides useful options, make sure you look into this factor as well. The NCD rewards drivers who prioritize safety. If you’re curious, check out to see why is car insurance mandatory in Dubai and you’ll see why it makes sense.
5. Car insurance premiums
The car insurance premium is the total amount you pay for insurance to protect your vehicle. Usually, the insurance company is responsible for determining this amount based on how likely you would make a claim.
This factor depends on your vehicle type, car value, driver’s experience and age, and their history of claims. These add up, resulting in your overall insurance cost. Therefore, it is an important factor to analyze. If you own more than one car, you’ll definitely benefit from multi car insurance with better deals.
How to choose a car insurance company?
Regarding your personal priorities, there are many ways on how to choose a car insurance company. Whether you come across a certain company through recommendations or advertisement, we still suggest that you put some time to do your own research.
Comparing factors such as coverage and policies helps you realize what plan works best for you. Here are some other factors too look through:
1. Recognize your own priorities
If you don’t determine your personal needs, choosing an insurance plan becomes difficult. When you recognize what’s important to you, you can actually eliminate options and finally choose a plan that answers your needs.
There are numerous insurance plans, but not all of them might come in handy for you. That is why it is so important to determine what type of driver you are, what kind of vehicle you own and what you actually require from an insurance plan. This is the safest way to choose a company that provides plans that will work for you. Also as we said, driver type highly influences insurance price; so check out car insurance for young drivers if it can fit your profile.
2. Third-party ratings
Third-party ratings might also come in handy when you look for companies with good customer service and high ratings. Also, pay attention to using verified, trusted and qualified rankings to analyze a company’s performance. Rankings are usually a great tool that will help you when you’re wondering how to choose car insurance.
3. Check insurance quotes and compare prices
There is plenty of data considering the average costs of certain insurance coverage plans. Therefore, it is not that hard to compare prices and determine whether or not a company is being fair with their prices. Make sure you look through the list of the options a certain plan provides before comparing prices. Don’t miss out our guide on no claim bonus in motor insurance since it will help you save a lot on your insurance.
How to choose auto insurance coverage?
As you wonder how to pick the best car insurance, you must be asking more specific questions. One of these fundamental questions might be how to choose car insurance coverage limits.
Coverage is probably one of the most important factors that will help you pick your ideal insurance plan. There are different types of insurance coverage. Here are some of the most important ones:
1. Collision
As it is somewhat clear due to its name, collision coverage helps cover the damage done to your vehicle in an accident (repair or replace). This is a first-party coverage and it only covers damage done to your own vehicle and not the other person’s.
This coverage is also helpful in case you hit a certain object. We recommend you pick this coverage especially when you own a new vehicle.
2. Comprehensive
This is also another first-party coverage that covers certain damage to your vehicle, but not regarding an accident. Comprehensive coverage takes care of damage due to things outside the driver’s control, such as loss and robbery, or accidents such as fire, vandalism and hitting an animal.
3. Liability
Liability coverage is required in most areas due to its importance. This is a third-party coverage to help you in case you injure someone or damage a property. It contains two components:
- Bodily injury liability that helps with the costs of injuries caused to another person during an accident, such as medical expenses.
- Property damage liability that helps with the costs of damage caused to a certain property due to an accident, however property damage does not apply to your own vehicle, since the collision coverage is dedicated to that factor.
4. Uninsured/underinsured motorist
This coverage is helpful in case you’re hit by a driver with no third-party insurance. This coverage helps you pay your medical bills, or even repair your vehicle in case of any damage.
There are also other types of car insurance coverages that you might want in addition to the important ones mentioned above. Here are a few examples:
- Rental reimbursement coverage protects your rental car while you are waiting for your damaged vehicle to get repaired.
- Towing and labor coverage helps cover the costs of battery replacement, lockout and gas services etc. in case of emergency.
- Classic car insurance, or collector car insurance is necessary if you own any classic or antique vehicles including vintage cars. A normal coverage may not be useful for this type of car since most antique vehicles have a higher value than their former price.
How to choose comprehensive car insurance?
When you choose a comprehensive insurance plan, you somewhat ease your mind, since no matter how good of a driver you are, accidents such as robbery and theft, fire, natural disasters, and damages to your vehicle might happen at any time.
The worst thing about these damages is that they are so unexpected. Honestly, sometimes you might just get a bit unlucky. Especially if you are leasing a car, it is best if you get comprehensive coverage.
By choosing this insurance plan you make sure you won’t need to pay extra cash if this sort of problem happens.
How to choose third-party car insurance?
As we mentioned above, the third-party liability insurance covers your costs if you are responsible for damages to another person or property. When asking how to choose car insurance, most companies offer you this coverage since it is usually mandatory.
It covers repair costs, legal fees and medical costs if necessary. Accidents might happen at any time and no matter how hard you try to prevent them, sometimes there’s nothing you can do. By having the right amount of liability coverage, you can worry less about accidents since it covers most of your third-party fees.
The importance of choosing car insurance
No matter what type of driver you are or what sort of vehicle you own, you may wonder about the details of having a car insurance and what factors you should pay attention to.
Also, learning about the importance of car insurance is the first step to making sure you purchase a suitable plan. As we mentioned earlier, there are penalties for having no car insurance in the UAE.
If you get caught without insurance, you face AED 500 fine, in addition to 4 black points to your driver’s license. In some cases, the police might get a hold of your vehicle for several days. Other than the penalties, having a car insurance is crucial for any driver.
No matter how good of a driver you are, accidents can happen at the most unexpected times. Therefore, in order to help prevent further trouble and bigger damage, you better pick an insurance plan that suits you and your vehicle.
How can we help at Lookinsure
As a driver asking how to choose car insurance in the UAE, it is safe to say that you’ve come to the right place. Here at Lookinsure we make sure to provide the highest quality of plans with the most affordable prices.
By mentioning your vehicle details and information to our professionals we offer you budget friendly rates that are suitable for your circumstances. Lookinsure is certified by the UAE central Bank and licensed by the government of Dubai.
By partnering with over 10 trustworthy insurance companies, we make sure you receive the best policies suitable for your needs. We also use the safest bank getaways in order to protect your transactions and personal information.
