I am an owner of a total of two cars. I absolutely love my cars and care about them, hence my cars have always been kept in a well-kept condition, good as new. But things are sometimes not in our control and similarly, I too have been in some car accidents. My cars were a little damaged but whenever they were, my life and daily activities were still managed smoothly as I had temporary cars. My cars were getting fixed by the dealers. I did not have to pay 1Dh! How did this happen?

Well, yes it is. No magic, no connections, this is just the power of car insurance, my friend. Insurance is nothing but a plan for the management of risks. Accidents are inevitable, even if we take all precautions. If you get into an accident, the only matter of concern should be whether the people involved are fine and safe. Insurance is a way of making sure that you don’t have to pay for the damage.

Whatever potential loss or damage could happen, you transfer its cost to the insurance company when you buy insurance. This is done in exchange for a small premium that you have to pay. Insurance companies invest these funds in a secured manner which makes them grow over time. These funds are then able to pay out for your expenses when needed. There are different types of insurance like you can get life insurance, accident insurance, health, etc. It sounds like a taxing job, but it is worth it. Be safe so that you do not have to be sorry later!

You can go through these other reasons to know why you need insurance as soon as possible. -

For That Mental Peace 

Let me tell you why insurance is important for a stress-free life. When we are an adult, most of our time is spent planning and worrying about the future,  From higher education to the wedding, family expenses, vacations, and travel, etc. But like I said, mishappenings are unavoidable. I pray it doesn’t but someday your car can get damaged or there could be a fire in the building. 

For these uncalled-for situations, you need to be prepared beforehand. Paying for all these damages without insurance backing you up can cost you a fortune. Insurance can help you get through this tough time with ease. An insurance company will take care of all these matters, giving you - mental peace. 

For The Risk-Takers

The probability of things going wrong is always there, but that doesn’t mean you don’t experiment in life and be free. Try new things in life and career. If you have the right insurance, you can take the leap and go for it. The insurance will be your safety shield, saving you when things don’t go as planned. 

Take travel insurance and travel the world. That fancy car you like in the showroom, buy it and get insurance for it, build your dream home or buy it with insurance. Life is too short so - take risks but with insurance.

For The Law’s Sake 

In January 2014, the Dubai Health insurance Law No 11 of 2013 had come into effect. This law made it compulsory for all the residents and nationals that have a Dubai visa must have health insurance cover. As per the law, providing the essential insurance package as well as the coverage is the same, no matter who takes it, is the legal liability of every sponsor. 

In case the employer is unable to provide insurance to the employees, there will be monthly penalties. These penalties will be levied with retrospective effect and can range from Dh500 per person, monthly. So, must I tell you that it is much cheaper to buy insurance? The fines are way more than the actual cost of the essential benefits package. Similarly, if you have 3 cars for example, then you must get car insurance for each of these cars. If your budget allows you, however, you can buy a higher level of insurance. A higher level of insurance offers a wider coverage and could even be more suitable for your needs. 

For It’s Cheap 

Yes, this is also one of the most important factors. Insurances are cheap and can easily fit your budget. Consider health insurance, for example. Health insurance in UAE as mandated by the law starts from as low as AED 500- 700 annually. What does this mean? It means you are paying just Dh1 daily. 1 Dirham a day can keep expenses at bay!

To look for various insurance companies that provide different types of insurances, you can check here