Revealing the Top 6 Things Your Car Insurance Provider Avoid Telling You

The main objective of any insurance company is to provide coverage to its customers through various insurance policies. However, These companies are generally more concerned about safeguarding themselves rather than covering you. Even if you make payment of your premiums and in return expect your provider to keep up with their side of the deal, you may end up disappointed.

If you have ever been involved in an accident and filed your claim, you must know the ‘preferences’ of your provider in settling your claim.

The insurers keep a few things as a mystery from you. Here is a rundown on a few things that your insurance provider would avoid telling you while offering car insurance Dubai online.

Method Used for Valuation of the Vehicle

For paying out your claim, your insurer will calculate the value of your car. There are some simple and common methods that are used for the valuation of the car. However, it is not necessary your insurer relies on these methods only.

They usually go for a complex formula for calculating the value of the car. For example, the provider may go for a market survey on the same kind of cars in the area or make a compilation of some computerized quotes from vendors.

Making use of the combination of different methods provides the insurer with more opportunity for manipulating the estimated value. You do have the option of challenging the value that has been calculated by the insurer.

But, putting forward an effective challenge, you must value the car yourself too.

Insurance Claim can lead to a Rise in Premium Rates

There is a whole of mystery when it comes to the methods used by providers for setting up your insurance premiums. This mystery becomes even more mysterious in terms of the basis on which the insurer determines the rise in your premium post-accident.

In fact, most of the insurers avoid discussing with you the status of your insurance prices after an accident. Due to this, some people do not feel free to report an accident to their provider.

Always remember, no matter what, you have to report the accident you were involved in to your insurer.

Not doing so, puts you and your car in a big risk because you never know the damages and injuries may later become worse than you had imagined.

Declaring your Vehicle a Total Loss

After a crash, which has caused serious damage on your car, your insurer may make you believe that having the vehicle declared as a complete loss and purchasing a new one is the best option for you.

But the truth is, this is a bad option. In case your car gets totaled, you might be able to recover even below the real value of your car. This amount could be way less than the cost of your buying a new car. For your insurer, the totaling of the car is a good option. Totaling the car costs less to the insurer as opposed to making all the repairs.

Due to this, the insurance providers consider is better to declare your vehicle scrap or total loss and hence, are doing this more often.

Value of the Vehicle Reduces After the Repairs

You must be aware of the fact that even when you get your vehicle repaired properly, due to the involvement in the car accident, there is a considerable loss of its value. While the insurer bears the cost of car repairs, you might still be at a loss because the worth of your vehicle reduces big time.

In a few cases, your insurance policy may give you the option of diminished value claim which you can make for the loss of value occurred due to the accident. However, such a claim does not exist in every situation.

Make sure you go through your policy to check if such an option is available or not. Another essential thing to do is staying aware of the parts being put into your car. Your provider may want to use salvage or generic parts instead of using new and original parts that can be obtained from dealers.

Coverage Does Not Include Personal Property

Buying a third party liability insurance is compulsory in the Emirates. However, this liability cover does not provide protection to your property or cars. This policy pays out the claims only when you have been involved in a car crash, which has caused injuries and damage to the other party.

If you only own a TPL plan, then forget that your car will be covered too. And of course, all the items in your car remain uncovered as well. In case you have a policy that covers your vehicle too in the event of an accident, you must note that such a policy will offer you financial compensation only when the vehicle is damaged or has to be replaced or repaired.

Damage or other losses caused to property or valuable items inside the vehicle due to the collision will not be covered by your insurer.

Friend’s Driving Inability Can Prove to be Costly for You

While buying insurance for your vehicle, you may think about making a claim only when you were driving the vehicle during the collision.

However, if your friend has borrowed your car, and he or she, unfortunately, meets with an accident while driving it. What would you do then? Of course you would want to make a claim. But, there are chances your rates may rise as a consequence of the claim.

You will also be short of the costs of deductible for the damages caused. If the claim arising from such a crash crosses the limits of your policy, you can get personally sued too.

One thing is for sure, you would not want to take such chances. Hence, try to avoid giving your vehicle to your friends. Or at least make sure that your friends have insurance.

The Bottom Line!

These are some of the things out of many, that your insurer may avoid discussing with you. In case, the accident claim gets denied, look for the reason. If you seriously want to keep your rights protected, it is important for you to consult with a professional vehicle accident lawyer.

He or she may stand up for negotiations with the insurer on your behalf. Always take steps to protect your rights and ensure that you receive what you deserve. Also, check with above-mentioned points with your potential insurer before you purchase your car insurance Dubai online.