Dubai: “The Gulf”

How much you’ll pay out of pocket in the event of an accident depends on coverage and deductibles and the circumstances of the accident.

If the other driver is responsible for the accident, he and his insurance company are responsible for covering the costs and damages. But what if the other driver doesn’t have insurance? Or is his insurance not up to par? You will only be left with your bill. Therefore, you should ask the insurance agent what he can do to ensure that your policy will protect you in such a situation.

If the collision is due to your fault, the insurance company will cover the repair, medical and legal expenses as per the terms of the insurance policy and once you pay the deductible or known as deductible or deductibles.

A real world example

To clarify the issue of additional cost, here is the following example: If your car is involved in an accident caused by you, you have a sum insured of 10,000 dirhams and a deductible of 2000 dirhams. If the cost of repairing your car damage is AED 1,500, you will pay the full AED 1,500 because it is less than the deductible amount. But if the cost of repairing the damage reaches 8,000 dirhams, you will deduct 2,000 dirhams and the insurance company will pay the remaining 6,000 dirhams.

What if the cost of damages exceeds the limits of the car insurance policy, for example 12,000 dirhams? In such a case, the insurance company will pay AED 8000 and you will pay AED 4000 (AED 2000 deducted + AED 2000 excess).

All insurance companies impose deductibles on drivers or policy holders to make them more responsible while driving on the roads. When you choose a higher deductible percentage, the insurance premiums will decrease, but don’t forget that when a collision occurs, you are obligated to pay the deductible percentage you chose, and if you can’t do so, you will face. A financial crisis you don’t need.

Ask your insurance agent about getting a deductible and review the various possible scenarios with him. They put together a policy that balances your individual needs, premiums, deductibles and insurance coverage.