How to invest money on the right car insurance plan?

• Having car insurance is mandatory in Dubai and you cannot have your vehicle registered without insurance.

• If you are up for renewal or have just bought a new car, here are a few things that you would like to keep in mind while doing the financial planning for investing in an insurance policy.

• The mistake that most people make while picking out a car insurance policy is that, they do not pay much attention to details.

• Superficial understanding of the terms and conditions, and the money that is to be paid as premium can lead to huge losses.

• Here are a few things that you would like to keep in mind while choosing the right policy:

Seek help from a financial adviser

• With plans and policies available in the market, it may get difficult for you to choose the right plan for Dubai car insurance.

• However, with the help of a financial adviser, you can understand and compare the vehicle cover, liability and accident claims are in place.

• A financial adviser can also help you understand the math that goes into your plan and help you choose the right plan for your car.

Get the math right

• Most people pick out a plan that demands the lowest premium.

• This may not always be the right choice. The premium on a vehicle is calculated annually and depends on a number of factors.

• From age of the vehicle to the look of your claims record, there are several parameters that are considered.

• You can ask your financial advisor to help you with the financial planning, if you do not understand the calculations well.

• Be clear in your head about the calculations, deductions and covers offered under the plan before you pick a policy.

Other factors

• Also check for other offerings such as third party claim, no claims policy and health cover facilities. Third party insurances are cheaper but will cover the damage only to third parties.

• A no claims policy, if available, can get you huge discounts if you have a clean record of claims from your previous insurance company.

• Other than this, you will also have to mind your own health. Check the coverage associated with health insurance.

• Most companies will offer you a policy that offers assistance during accidents or long term injuries.

• Keeping all these factors in mind, your question on how to invest money in the right car policy is answered. With careful planning and strategising, you can easily pick out a policy that addresses all your insurance needs.