How much do you understand your car insurance policy?

Dubai - Many car insurance policies offer roadside assistance

A recent survey by Souqalmal.com revealed that nearly half of the survey respondents in the UAE weren't satisfied with their current car insurance policy. Before investing into a policy, you have to make sure you consider all your options to avoid costs from doubling up in case of an accident or break down. Below is a checklist of things you need to know before picking a policy which matches your needs.
Comprehensive insurance vs third-party liability
Results of the survey also revealed that about 73 per cent of respondents had a full comprehensive car insurance policy. A comprehensive policy is a good option for new cars because of the extensive coverage it provides. Damages caused due to theft, accident, fire and vandalism are usually covered under this policy. It also includes cover for damages caused by your vehicle to another party.
Your other option is the third-party insurance which is the minimum coverage expected by the law. This policy only covers damages caused to another party by your car, but does not pay for any damages to your own car.
Roadside assistance
Many car insurance policies offer roadside assistance. It's particularly handy if you happen to be stranded when your car breaks down. This cover includes services such as towing, flat tire change, locksmith, emergency fuel delivery or battery jump-start. While some policies may have this feature by default, others may require you to pay extra.
Agency repair
Based on the Souqalmal.com survey, more than 45 per cent of respondents consider agency repair to be the most important feature when choosing a new car insurance policy. Some insurance companies offer agency repair for up to five years after the car is registered. This means that in the event of an accident, your car will be repaired at the official dealer of the car and not by an external garage appointed by the insurance company. Such a feature could mean higher quality repair, and can be added to your policy.
No-claims discount
If you are safe driver with a good driving history and a clean record, ask your insurer for a no-claims discount. Insurance companies reward safe drivers with substantial discounts on the premium if no claims were made in preceding years.
GCC cover
Does your car insurance cover your road trips to other countries? While some policies in the UAE automatically include this cover, it's worthwhile to check your policy before you hit the highway. If you take frequent trips to Oman, Bahrain or surrounding GCC countries, it's probably best to include GCC cover as part of your policy.
Personal belongings cover
Ever wondered what happens to your personal belongings in the event of theft or fire? Your personal belongings such as wallet, mobile phones and personal/work laptop may be of significant value, and if you regularly leave your belongings in the car, it's wise to insure them. Most comprehensive car insurance policies in the UAE provide cover for your personal belongings with a maximum limit on the cover and certain exclusions.
The writer is the founder and chief executive officer of Souqalmal.com. Views expressed are her own and do not reflect the newspaper's policy.