Experts have been recommending buying as much auto insurance as one can actually afford. That advice may sound good but does not make any sense unless you are conversant with auto insurance basics. You must choose a car insurance that works best for you. You would be able to compare the quotes from various providers only when you are clear about all the concepts and you are able to clearly understand the coverage that would be best suited to your specific requirements. Here are some frequently asked questions about car insurance.
1. Is it possible to keep the car in the event of a limited collision, collision, or comprehensive claim, and also when the insurance provider declares it a complete loss?
Your insurance provider has the right to take over the title of your car when the claim payment is made by the insurance company. You are entitled to your car’s salvage value. You are free to negotiate with your car insurance company to buy your vehicle for an agreed upon salvage amount.
2. Does the insurance provider require to process comprehensive claims or pay for collision within a specified time limit?
There are certainly no specified time limits for the insurance company to settle your claims. However, as per law, insurance companies are supposed to clear all claims promptly and within a reasonable time period. Claims that necessitate extended or special investigation would obviously be taking a long time for resolution. Inclement weather conditions may lead to a boost in the actual number of claims so the process could get delayed in individual cases. However, if the insurance provider is unable to clear your collision or comprehensive claims within a week after receiving a formal claim form informing that the car has been repaired, you may consider suing the company for getting your due payments.
3. What would happen if your car is declared a complete loss after an accident?
When your car has been declared a complete loss, the car insurance provider would be paying you exclusively your car’s actual cash value but the cost to replace the car is not given as such. The car’s value could be determined by some of the important factors. The car’s retail value before the accident, the amount you paid for it, including extra investments, a decrease in value over the period before the accident and the actual purchase cost. The value of the car should also be appraised properly, especially if there are exceptional conditions like it being an antique, a restored automobile or a classic model. Get in touch with a reliable car insurance UAE company for effective and prompt solutions.
4. Am I required to pay insurance premiums even after my car has been declared a complete loss?
Indeed, you will have to pay an insurance premium in such a situation, until you have returned the license plate to the Registry of Motor Vehicles or a similar governing agency. That is when the policy is terminated. In an exceptional case where the license plates are stolen or damaged beyond repair or recognition, you will have to find the nearest office for the same body and file a request for a lost or a stolen plate which is then to be presented to the insurance agency so that they can cancel the policy before the next premium is due.