Tuesday, 29 November 2022

HOW IS CAR INSURANCE BENEFICIAL?

A contract between the policyholder (the insured) and the insurer (the insurance company), also known as car insurance Dubai, is made to cover the risk of financial liability or the loss of a motor vehicle that the owner may experience if their vehicle is involved in an accident. These companies offer a variety of coverage and options. The contract typically contains the following provisions: (1) insuring agreement, (2) exclusions, (3) conditions, and (4) definitions. Car insurance can help pay for things like repairs to your car, medical expenses, and even legal fees if you’re sued. You agree to pay the insurance company a monthly premium. Thus, below are some benefits of car insurance.

  • Personal accident cover: If you have comprehensive or collision cover and are involved in a car accident without being at fault, your car insurance will usually pay for the costs of repairing or replacing your car. This can help cover costs such as car repairs, loss of use, and legal fees. You will usually have to claim within a set period, which is usually within a few weeks. Make sure you read your policy carefully to find out what you are entitled to. This is known as personal accident cover. The costs of personal accident cover can be quite high, so it’s important to make sure you have enough coverage.
  • Large network of garages: A majority of car insurance companies have a large network of garages across the country. So, in case of an accident, the car will be towed to the nearest garage in the network. The garage will then get the car repaired and will also give a cashless settlement. So, you don’t have to pay from your pocket as the insurance company will make the payment directly to the garage and can get the repairs done quickly. This facility is not available if you have not insured your vehicle. This can save you a lot of time and hassle.
  • Third-party liabilities: Third Party Liabilities are a big part of car insurance. This is especially important if you have an uninsured motorist policy, which covers damages that you and another driver cause to each other while both of your cars are on the road. Uninsured motorist coverage pays for damages to your car even if the at-fault driver doesn’t have insurance. If you are in an accident and are at fault, the other driver may have a claim against you. This could mean paying for damages they suffered, such as car repairs, lost wages, and pain and suffering. You may also be required to pay the other driver’s legal fees.
  • No claim bonus: Car insurance companies in UAE, often have a no-claims-bonus feature that pays out money to the policyholder if they don’t have to file a claim with their insurer in a given period. The NCM bonus usually applies when you have a policy with a certain number of claims, or when you have maintained a policy for a specific length of time. The NCM bonus is usually refunded to you within a certain period, typically within a few weeks. If you do not claim during that time, the bonus is yours to keep. This can be a great way to save money on your car insurance premiums.

The benefits of car insurance are vast and varied. However, the most important thing to remember is that it is there to protect you financially in the event of an accident. It is important to shop around and compare policies to make sure you are getting the best coverage for your needs. Buying car insurance is very important if you own a car. Car insurance can help pay for things like repairs to your car, medical expenses, and even legal fees if you’re sued. So, there are many benefits of car insurance including personal accident cover, a large network of garages, third-party liabilities, and no claim bonus.