Car insurance is an important aspect to consider in purchase or lease of a car. Almost every state requires vehicle owners and drivers to have or purchase auto insurance liability coverage, which covers the cost of any damage that you may cause to another car, its driver and passengers. The minimum auto insurance requirements vary from state to state. Liability insurance consists of three parts:
There are two general types of car insurance that you can purchase; comprehensive, which covers the driver and the other cars in case of an accident, or third party coverage, which only covers the other car and passengers in case of an accident. With third party coverage, the policyholder must pay for all damage to their own vehicle if they cause an accident.
Comprehensive policies, depending on the added benefits that are purchased, can also cover a cracked windshield, car rental during damage repair, 24/7 roadside assistance and other perks that the insurance company may offer. In the UAE, most policies for car insurance in the require a deductible to be paid with the insurance company covering the remaining amount. This can range anywhere from AED 500 AED to AED 2,000. Of course, the cheapest car insurance usually comes with the highest deductible.
But the cost of your insurance will vary. Your insurance rate is determined by the likelihood that you will file an accident claim, which is determined by statistical risk factors.
