Friday, May 31, 2013, AM | 3 Comments
For most car owners in general their vehicle is a source of pride and love. It is an asset and possession that one must take care of in order to keep it up and running in prime working condition. We make sure the engine works fine, the oil is filled, the tank is full of fuel, the tires are at optimum fullness and the interiors are clean and sparkling; so why do so many car owners not do the most basic and important job of them all – purchase car insurance.
We all seek to insure our other expensive assets and possessions like our home or jewellery for example, and yet many first time car owners either let their car insurance slide or opt for something sub standard just because it may have been a cheaper option at the time.
This sort of attitude results in major expenses and an immense amount of financial drain in case of an emergency and/or accident. When faced with a disaster, it is horrible to find yourself stranded or unable to take care of the demands or expenses.
If you are still debating whether to get motor insurance in UAE or any country you reside in, let’s take a look at why this should be an easy decision for you:-
Firstly, and very importantly, most places have made car insurance a mandatory cover by law. It is against the law in many parts of the world to take your car out on the roads without having a car insurance policy and flouting of this rule can lead to dire consequences. If this is the case for the country you reside in make sure you know what the rules are and follow the same without question.
Also in some cases many car rentals, lease companies and lenders have a stipulation that the driver must possess car insurance before they let them take their vehicles out on the road.
Secondly, you will need car or motor insurance to protect yourself from financial liabilities in a time of trouble. You will find policies that will help pay for damages to the car in case of accidents, thefts, as well as natural disasters like fires, floods and earthquakes and the like.
There are also car insurance coverage options that protect against financial loss due to injury or death of the driver as well as other passengers.
Thirdly, consider a scenario wherein you are in an accident or have property damage caused by another driver and he does not have adequate insurance or any at all. You will be left footing a bill that can be gigantic. Instead you could opt for an insurance plan that also provides coverage against uninsured or under-insured drivers.
Sometimes knowing you are insured and that the insurance company will be keeping a tab on your driving records makes you a little more cautious and safer behind the wheel. Insurance firms usually check to see what your driving history has been as well as whether you have had insurance in the past when giving you a price quote.
A good car insurance policy could be that one simple step between you and possible financial ruin. Cars do not come cheap and neither does repairing them. Take the necessary legal and financial precautions that are not only often mandatory but also plain old good sense!
Jonathan Rego is an insurance agent in Dubai and deals with home and motor insurance in UAE. He has been in the industry for 11 years and is still surprised that so many people hesitate to protect themselves financially. He also blogs and writes regularly for industry journals.