The fine print of car insurance policies is often enough to make your head spin. Words like claims, deductibles, and exclusions can be daunting. To cut through the noise, here MoveSouq.com, a home services marketplace, has teamed up with insurance company QIC Insured to provide a guide on how to read a car insurance policy:
Claims
The single most important thing in any policy is the insurer’s ability to handle a claim. For example, is it easy to file a claim and get it approved? Is the whole process managed quickly and without hassle? Before buying or renewing your policy, you should ask the sales agent the following:
• What steps are involved in filing a claim?
• Do you have to take your car somewhere to be assessed?
• What is the average time to process and approve a claim?
Exclusions
The “fine print” most often includes exclusions and it is important to understand what type of car insurance you are looking for. For example, if you require your car to be repaired at the workshop of the car dealership, you need to make sure that “agency repair” is included, which will cost significantly more than “garage repair” from a third party workshop. Before saying “yes”, customers should find out the following:
• Will the car be repaired at the dealership (agency) or a garage?
• How much of the claim you will have to pay out of your own pocket?
i. Deductible – the out-of-pocket expense you have to pay for each claim
ii. Spare parts – common for older vehicles
Additional services
The best car insurance typically offers additional value in terms of add-on services related to daily use of the car. These could include discounts and vouchers or any of the following:
• Personal accident benefit – a one-time amount that the insurer will pay if you or any occupants of the car die or are disabled in an accident
• Rental car – a loan car that is provided while your car is being repaired after an accident
• Roadside assistance – 24-hour hotline for breakdowns or other car trouble (e.g. flat tyre)
No matter the type of car insurance you choose, it should be easy to understand, easy to buy, and easy to renew online.
pf@thenational.ae
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