5 Elements That Determine Your Car Insurance Cost

September 2, 2021

Identifying the best car insurance cost from an insurance company requires time and a good amount of knowledge. It is definitely a lengthy process (and slightly boring) but a very important one! We’re trying not to repeat ourselves but It’s ALL in the fine print! When choosing the right auto insurance policy for your car, go through the terms carefully and ask as many questions as you like.

To simplify your life (as usual), we’ve come up with a few important jargons that determine your car insurance cost. Scuba suits on, let’s dive in! 

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We’re paw-sitive these terms will help you!

Quick re-cap into car insurance policies

Comprehensive Car Insurance Policy provides FULL COVERAGE. This policy covers costs incurred to both parties – such as repair or damage charges, hospital bills and property damage. Additionally, if your car is being repaired at the garage, you will receive a temporary car.

On the other hand, Third-Party Liability Car Insurance is simple and costs far lesser than a comprehensive policy. It covers damages caused to the other vehicle or property and medical charges of the other party (if applicable).

Although comprehensive car insurance is more expensive; it offers several benefits and cuts repair costs drastically – saving you a lot of money in the long run. Learn more about the types of coverage Hala has to offer – find a policy that best suits your car!

Common Car Insurance Jargons

Now that the coverage options are out of the way, it’s time to pay attention to the following terms found in the fine print:

Insured value

In the event of an accident, understanding your insurance coverage will leave no room for confusion when it comes to any liability coverage. Insured Value is the maximum amount of coverage you will receive from your insurance provider. However, this applies to situations in which your car has been heavily damaged or totalled.

If the value stated is not close to the current market value of your vehicle, you should probably look for a different provider 👀

Inclusion & Exclusion Policy

Inclusion and exclusion policies can be found in separate sections within the documents and should be read carefully – understand what your insurance covers and what it does not. Knowing this information will make it easy to file an insurance claim in the future and avoid any rejection during the claims process.

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A fan of dune bashing? Then this section is especially for you!

Add-ons

If you’re into dune-bashing, then this section is for you! Since you will be modifying your whip, we recommend adding those modifications to your insurance plan too.

Customising your plan according to your requirements is an advantage but comes at an additional cost (apart from the premium you pay). If you are unsure about this step, you can always speak to a representative. Unnecessary add-ons will only increase your car insurance cost! 

In case you do not want to invest too much on add-ons but would rather own a sturdy car for dune bashing, you might like this list of Most Reliable Off Road Vehicles Used in UAE.

[Related: Top 4 Mistakes to Avoid When Buying Car Insurance]

Validity

By keeping the expiration date in mind and renewing it well in advance; you will avoid paying the entire sum for the loss or damages caused in an accident and a penalty fee for the lapsed policy. Never claim insurance beyond the expiration date (you will regret it 😨).

It’s not only an expensive consequence to drive around as an uninsured motorist, but an illegal one too! 

Final suggestion on car insurance

Whether you choose a third-party or comprehensive car insurance, always compare car insurance policies before finalising on one. The car insurance market is heavily saturated with providers that are well trained at making their policies stand out at attractive prices. This is why we highly recommend you do your own research first, before approaching an insurance provider. However, if you know of any reliable and affordable insurance providers (like Hala 😉), you can speak with them directly.

If these terms have further confused you, Hala is here to help! You can learn more about the benefits included in our car insurance plans and get a quote on your car within minutes! 

We want you to know first!

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