When you think cars, the last thing that comes to mind is insurance. The word itself is drab and dry and will have you running for the hills.
But hey, don’t run just yet. You’ve gotta at least know the basics of car insurance policies, and what they do. How else are you going to choose the right policy for yourself?
This short and simple guide will tell you all you need to know about car insurance in the GCC.
Why do I have to get car insurance?
Well, a) you don’t have a choice. And b) you don’t have a choice. The law obliges you to take out at least some basic coverage if you want to register your car.
What you can choose, however, is the kind of cover you want. And add-ons. That depends on your expectations of the coverage and affordability.
What factors influence my insurance costs?
Age of the driver
They say age is just a number. Try telling the claimant that. When it comes to insurance, your age and the number of years that you have been driving make a huge difference.
Say you’re between 25 and 30, that would add around 15% more to your total insurance cost. Even if you look 16.
Age of the car
It’s not just your age, either. It’s the car’s age too. The newer the car, the higher the cost to insure.
If you’re a fan of high octane sports cars, then prepare to shell out more cash. The high tech monsters that pack speed and power are more likely to get into an accident than say a 66 horsepower Mitsubishi i-Miev.
And the higher the risk, the higher the insurance cost.
What it comes down to is this. The more expensive your car, the more it will cost to insure it. It’s a no brainer really. Like, it’s a totally different thing when you wreck a Ferrari and when you total a Hyundai i10 (no offense to Hyundais).
No-claim discounts
Insurance is all about mitigating risk. Right? You’d want to reward the least riskiest person in the business.
So unless you’re Tom Cruise writing off motorcycles in action films, you may be eligible for a no claim discount of up to 50% upon renewal. This depends, of course, on how many years you’ve gone without a claim.
Now you may ask, what happens in the event of a third party claim? Basically, you’ll have some percentage points docked off your discount, but it wouldn’t revert to zero. This, of course, only applies if you weren’t at fault.
How many types of car insurance are there?
Two kinds:
Comprehensive coverage
As the name suggests, this policy gives you complete protection, whether you caused the accident or not.
It comes with many add-ons that you can choose to opt-in and out of, based on what you need.
Your policy would usually cover the following:
Vandalism, windscreen damage, damage from hitting an animal (because you’re always likely to stumble across a desert gazelle in the dead of night), fire, floods, natural disasters, damage to third party vehicle, damage to your vehicle.
Your policy wouldn’t cover:
General wear and tear, mechanical or electrical failure, damage to tires, damages caused if you’re driving under the influence.
Third-party liability coverage
This is the minimum coverage you legally need to buy a car. If you cause an accident, then this policy will cover damages to the third party’s car.
But any damage to your car will have to be paid out of your own pocket.
In older car models, this kind of insurance is pretty common. In fact, Insurance providers usually don’t provide comprehensive coverage to extremely old vehicles. That basically rules out Fred Flintstone’s car.
What kind of Optional add-ons comes with my insurance policy?
Agency repair
When you’re buying a new car, the dealer or manufacturer will offer you the chance to opt into a policy providing 5-year coverage from the date of registration.
It may cost you more, but you’ll benefit from full servicing every time your car needs maintenance or repair.
Off-road and GCC (Gulf Cooperation Council) cover
How do you like those desert safaris? A lot?
You may consider an off-road and GCC cover for advanced protection and peace of mind as you roll with the dunes into the Arabian night.
Flooding
This is GCC-specific, especially during winter season. Take out a flooding cover today as you anticipate those floods.
To sum up what you need to know about car insurance in the GCC
Owning a car is so much more than igniting the engine and tearing down the highway in the dead of night to a Prince song.
You need to make sure you’re covered in the event of an accident, flooding or desert terrain. Maybe not if you’re Tom Cruise.
We hope this guide has has told you what you need to know about car insurance in the GCC.
While we’re on the subject of law, has your car got the right tires? Check out our guide to find out!
