Media post: How Does Car Insurance Work? & 4 Tips For Getting a Great Deal

IMG Source – https://unsplash.com/photos/3eg3Iuq-3gQ

Car insurance, just like any other insurance, provides cover against uncertainties, which in this case includes accidents, damages, repairs, and additional third-party liabilities that can financially ruin an individual. Most countries across the world mandate third-party coverage for all vehicles, with stiff penalties for non-compliance.

Basically, a car owner pays a premium each year, which is decided based on various factors such as the value, coverage, type of car, and history of the driver, among other things, in return for varying degrees of coverage, and added services. 

The basic policy mandated by law essentially covers third-party damages, and often has the lowest premium, while comprehensive coverage, which includes own vehicle damages, medical treatment, and more, is usually a little more expensive. Apart from this, there are add ons such as road-side assistance, no-depreciation, and more, which aren’t necessarily, but can add value to a discerning consumer.

4 Tips For Getting A Great Car Insurance Deal

With the bare-bones understanding of how car insurance works, and how premiums are priced, as discussed above, here are some tips for getting a great deal on your car insurance.

1. Be A Responsible Driver – Insurance premiums are priced based on risk perceptions, and the best way to lower the premiums is to show that you are a responsible driver.

This is where the history of a driver comes into play, and any accidents, traffic violations, or irresponsible behavior in the past is likely to factor into the premium.

2. Check Inclusions / Exclusions – As discussed above, car insurance policies come in different shapes and sizes, making it essential to go through the fineprint to better understand what is included, and what remains excluded in the policy.

For example, if you’re unlikely to take your car outside of the Emirates, you may not need the additional GCC cover. Identifying, and excluding such add-ons is a great way to reduce your overall premiums.

3. Consider Your Deductibles – Car insurance services allow customers to choose the rate of deductible, which is the amount they will end up paying before the insurance company enters the picture, in the case of accidents, thefts, or other damages.

By increasing the deductible amount, consumers take on additional financial risk, but can reduce the immediate premium that is to be paid.

4. Compare Before Buying – Insurance comparison marketplaces have ushered-in an era of radical transparency and competition in the markets, adding substantial value to consumers.

The ability to compare offers from all leading insurance service providers, with features, terms, and relevant addons, all mentioned side-by-side, along with the premium should help you find the perfect deal, and thus, should not be given a pass.

Car Insurance For Expats, e.g. In Dubai

By law, all cars in Dubai must be insured before they hit the roads, so whether you’re an expat, a resident, an Emirati, or a tourist, the car that you drive must be covered for third-party liabilities, fire, and theft, which is the bare legal minimum.

The Dubai car insurance market continues to heat up, with newer entrants and service providers driving prices down, and adding substantial value to consumers. As a result, insurance costs are nothing to fret about, as long as you take proper care to follow the tips and guidelines discussed above.

Final Words

Dubai is constantly ranked among cities with the best roads in the world, and the rush of driving on its smooth tarmac roads is not to be missed. 

The city maintains this by strictly enforcing traffic laws, and to make the most of your stay, and lifestyle that the Emirates has to offer, expats should make it a point not to skimp on essentials such as insurance, especially when mandated by local laws.