How to Choose a Car Insurance Service Provider?

car-insurance

Car insurance is done to protect your vehicle in an event of an accident and another unforeseen risk. It protects against the losses incurred as a result of unavoidable instances. It usually covers theft, financial loss caused by accidents and liabilities. Your premium is dependent on certain parameters like the value of the car, type of coverage, vehicle classification and voluntary excess. Several factors influence the rate of your car insurance. While some of these factors may not be in your control, there are some which you can pay attention to. Since accidents are inevitable even if you are an experienced driver. So, it is important to protect yourself and your car with an insurance policy that can secure and protect you.

Some factors influence the rate of your car insurance that you need to know. The biggest factor that influences the insurance premium is your age, if someone below the age of 25 years with a license, then your premium will be at least 15-20 percent high. This is related to the fact that the frequency of accidents and mishaps is higher among people who have a lack of driving experience within the age group, along with that history of accidents, age and coverage of vehicle, repairs and amount payable by the insurer.

Some insurance provider can issue cheapest car insurance in Dubai which offer low –cost policy options that provide motor insurance coverage for physical damages in conditions like theft, vandalism, self-ignition, accidental collision, external explosion, damage or loss during transport through road or overturning. It provides the policyholder coverage for the legal expenses against the third party for injury and damage. Along with this, some of the policies offer hassle-free commutes with a replacement car at discounted rates, airport pick and drop services, swift repair from their network of agencies and garages, etc.
It is important to understand the policies of your car insurance provider company. Select a well-established firm and do proper research for car insurance.

How to Choose a Car Insurance Company?

  1. Check the financial condition of the firm whom you have decided to pay. A genuine and experienced insurance company has everything in open and nothing to hide. So, pay attention to the assets and net worth. The main credible thing is the increase of capital which indicates the growth of the customer base and the reliability of the business entity.
  2. The cost does not matter when you get everything as per your requirement. It is better to pay more than feel sorry later. Do not go on the size of the firm or pay cheaper and regret later when you have to shell out money out of your pocket in the event of a car accident.
  3. Credit rating agencies indicate the strength of a company’s balance sheet, its management, its ability to pay their liabilities, amongst many other things. Before selecting an insurance company make sure that they have a high credit rating which in turns determines their ability to pay people claims in an event of an insured loss.

In addition to this, pay attention to customer service and choose a reliable insurance provider only.

5 Ways in Which Car Insurance Companies Can Deny Your Claim

Car insurance in UAE is mandatory for anyone who owns a car and it is an offense to drive without it. Basically, car insurance provides financial support to the policyholder in case of an accident. And the process of getting the insurance money in such a situation is called claiming the insurance.

Sometimes, when a person tries to claim the insurance, the insurance company may deny the claim, leaving the policyholder with the burden of paying for the damages out of their own pockets. The sad truth is that the policyholder will know that their claim will be denied only after filing for it, making their situation bad to worse.

So let’s see the ways in which insurance companies deny the claim of the policyholder when it comes to car insurance so that it does not happen to you.

Know What the Policy Covers

It is too common to see that people are more focused on the price of the policy rather than what the policy covers. There are two main types of motor insurance policies here in the U.A.E: Third Party Liability plans and Comprehensive Insurance plans. Comprehensive car insurance policies provide bumper to bumper insurance for the car of the policyholder and also covers the driver and passengers in case of an incident. Third Party Liability plans, as the name suggests, does not provide insurance coverage to one’s own car but protects the car and property of those affected by an accident in which your car is involved. So, if you have a third-party insurance policy, you will not be eligible to claim for damage to your own vehicle in case of a known fault accident. However, the plus side is that these third-party insurance policies cost less than comprehensive policies.

So, the best practice is to always inquire about what the policy covers and what it doesn’t before you put down your money on one. Otherwise, your claim can be rejected when you bring it up for compensation.

The Credibility of the Driver

Car insurance companies can deny the claim if the car was damaged when an unlicensed person was driving it. Driving without a license is considered a crime and can have serious fines and even imprisonment if caught. Hence, most of the insurance companies make it clear in their terms that the policy doesn’t apply when an unlicensed person is driving the vehicle.

So, in most cases, the policyholder might have to pay from their own pockets if the driver was not licensed. And this is an easy denial for the insurance company.

Do Not Take Too Long

After an accident has occurred, the police will be on scene and will hand you a report after studying the scene. This report must be filed with your insurance claim, but taking your own sweet time to do so might get you into trouble.

Insurance companies require that you raise the claim during the same policy period as that of your accident. If you fall out of that time frame and raise the claim after your policy has expired, then you might not be able to claim your insurance even though you had insurance at the time of the accident. So you need to make sure that you report the events to the insurance company without delay.

Break The Law and You Will Be Denied

If the damage on your vehicle happened as a result of you breaking the law, then the insurer will most likely deny your claim. For example, if you met with an accident while under the influence of drugs, then the insurer doesn’t have to take the liability since its already mentioned in their terms and conditions.

On top of that, causing damage to people or property as a result of breaking the law is a crime, and you may end up paying a hefty fine, or in the worst-case scenario, even imprisonment.

Conclusion

From what we have discussed, it’s clear that a claim will not be rejected by the Car insurance company without valid reasons. They are there to help you when you need money the most, and with the right approach, it is always a win-win scenario!