Car insurance is a contract between you and an
insurance company. It protects the car owner from financial loss in case of
physical damage to the car, theft, or vandalism e.g, on your rental car from
rentalcarsuae.com. The insurance company pays for all or part of the repair or
replacement cost, depending on the coverage you choose.
What is car
insurance?
Car insurance is a policy that protects drivers against
financial loss resulting from damage or injury to a vehicle, or sometimes, its
occupants. In exchange for premiums paid by or on behalf of an insured driver,
an insurer agrees to pay for damage and injuries from auto accidents. The
purchase of insurance is compulsory in most jurisdictions and it fulfills legal
requirements mandating that drivers be financially responsible for their
vehicle use. Specific coverage levels may be mandated by regulation in certain
jurisdictions.
How Much Does
Car Insurance Cost?
The cost of car insurance varies based on many factors,
including:
Age: Younger
drivers are considered at higher risk because they tend to be more reckless
than older ones and less experienced at driving.
Marital status:
Married people tend to be safer drivers than single people because they have
more responsibilities at home and are less likely to take risks behind the
wheel.
Where you live:
The cost of living in some places is higher than others, which means their
residents can afford better vehicles with more features and options that add
value — and therefore increase the cost of insuring them.
Credit score:
The better your credit score (and the lower your debt-to-income ratio),
Types of Car
Insurance
There are several types of car insurance policies
available in UAE. Some of them include:
Life Insurance:
This kind of policy protects your family's future in case something happens to
you while driving.
Health Insurance:
Health insurance covers medical expenses incurred due to accidents sustained
while driving a vehicle.
Optional
Coverages
Insurance companies also offer numerous types of
optional coverage plans such as collision insurance (coverage for damage
sustained in an accident), comprehensive coverage (coverage for non-accident
related damages), medical payments (coverage for injuries sustained by an
insured person) and personal injury protection (PIP or "no fault"
coverage). Some insurers may also offer additional services such as rental
reimbursement coverage if renting a vehicle is required after a collision or
another covered loss has occurred; various types of towing coverage; roadside
assistance programs.
What Is Covered?
Car insurance
covers the following:
Property damage.
This includes damage to your own vehicle, another person's vehicle or
property, and even a tree or animal that gets hit by your car.
Medical costs.
If someone is injured in an accident caused by you, their medical expenses will
be covered by your auto policy. This includes injuries that are not related to
the accident but occur due to it (such as stress-related illness).
Legal expenses. If
you're sued by someone who was injured in an accident caused by you, your auto
policy will cover legal expenses associated with defending yourself against
this claim.
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