Eligibility Criteria
Like other financial borrowings, insurance packages also have certain criteria on which the cases of car insurance are assessed.
Age plays a vital role in defining your insurance value. Males below 25 years of age are considered riskier drivers and hence, insurance is expensive for them as compared to females of the same age or males above 25 years of age.
Insurance value also depends on car’s brand, make and model. There are few cars insurance for which is very expensive. Therefore, it is important that before finalizing the car insurance, consequences are also considered. Many people signup for insurance even before the actual purchase of the car.
Sports cars and fancy/luxury cars are also expensive when it comes to insurance.
Insurance package for cars that have been in use for 5-8 years also differs from the packages for new cars. Insurance for all elements are not covered in such cases.
Like medical insurance, the Motor Insurance Abu Dhabi and all over UAE also offer two kinds of interest rate, balanced interest rates and fixed interest rates. Both these rates have their pros and cons. balanced interest rate, however, decreases with the passage of time while foxed interest rates remain same for the entire insurance period.
Interest rate should be selected keeping in mind your payment schedule. As no claim history is an added benefit to your application, insurance companies in UAE accept no claims bonus certificates from across the boarders as well. Based on this certificate, an individual can earn a discount of 0-40%
In UAE, almost all car insurance companies follow the same pattern and offer the same features. Few of them are listed as below:
The amount of premium will depend on your preferences. The more benefits and coverage would mean higher premium.
Car insurance contract once signed can be shifted from one insurance company to another. This is admissible for Comprehensive at the premium level schemes.
Insurance value will depend on the value of your vehicle as per the insurance company.
Car depreciation value is always considered by the insurance companies while offering an insurance package.
The claims are settled on the current depreciated value of the car rather than considering value of car at the time of signing the policy.
To keep your policy at the same value, without considering depreciation value of the vehicle, an extra premium has to be paid.
Insurance companies also offer features such as road side insurance; which means if your car breaks down, the insurance company will send help.
In UAE, car insurance cannot be avoided as it is a prerequisite to vehicle registration, you can get enough information about different companies in the industry through personal references. Do your homework well, ask people about the dealings and packages offered by different companies
Select the plan and the company that is affordable, remember, in case of nonpayment of premium, the companies have the right to start legal action against you. Late payments can result in late payment fee and in some case cancellation of the insurance plan as well.
Features of Car Insurance
