3 basic criteria when purchasing car insurance

The Vice -Chairman of the Supreme Technical Committee, Chairman of the Automobile Committee of the Emirates Insurance Union, Mohamed Mazhar Hamada, said that there are three basic criteria that car owners must ensure their availability when purchasing an insurance document on their vehicles, the first of which is the search for credible insurance companies in the market, meaning that they are known and have their reputation in terms of commitment, strong financial performance, and financial solvency, stressing that this criterion is very important to ensure the company fulfills financial demands and repairing the vehicle At the level that the insured expects after the accidents.

He added to «Emirates Today»: “The second criterion is to read the insurance policy well, and to know its conditions to determine the various obligations and items, and forced tolerance, in order to avoid surprises when accidents occurred,” noting that the insurance policy is available, and customers are entitled to view and read them in a detailed manner, and he said: “Reading the conditions of the insurance policy is very important so that the insured knows what he has and what he has before he is signing Insurance request.

Hamada continued: «What I liked by some of the dealers is that they are asking the insurance policy first to read it, then returns after a day or two to discuss in some of its items, or agree to it and fulfill the rest of the procedures.

He added: “There is also a price factor, which is one of the very important criteria, as it is not necessary to search for the cheap price of the document being the best.”

He explained: «If the insurance company is strong and its reputation is known and its services are good, it will not be influential if the insurance premium is higher by 100 dirhams or more, as this will not be problematic, but the big problem if an accident occurred at great costs and material and physical damage that may reach hundreds of thousands, so the insured must not look at the insurance premium, but rather is concerned with the company’s reliability, and its ability to fulfill its obligations.

It is noteworthy that, according to the latest report issued by the Emirates Central Bank for the third quarter of 2024, the number of licensed insurance companies in the country reached 59 companies, distributed among 23 national traditional insurance companies, 10 national solidarity companies, 25 branches of foreign insurance companies, and one branch of a foreign reinsurance company.

The total number of insurance premiums increased by 20.9%on an annual basis to 50.8 billion dirhams, and this is mainly due to the increase in property and responsibility insurance premiums by 25.9%, health insurance by 21.4%, and people insurance and funding by 3.8%, on an annual basis.