Motor

Motor insurance 101: What every car owner should know

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Your car is more than just a vehicle! It connects you to your work, family, and the world around you.

Whether you're navigating the bustling streets of Muscat or driving across Oman's scenic highways, your vehicle needs protection.

Motor insurance in Oman isn't just a smart choice but a legal requirement that keeps you, your passengers, and others on the road safe and secure.

At Liva Insurance, we believe every car owner deserves coverage that's simple to understand and truly reliable.

In this article, we will help you understand the fundamentals of motor insurance, types, how premiums are calculated, how to choose the right one and more.

Table of Contents:
  • Types of motor insurance
  • How are premiums calculated?
  • How to choose the right motor policy?
  • Conclusion
Types of motor insurance

Broadly, in Oman, you will find two main types of motor insurance policies:

  • Third-party insurance: Third-party insurance is compulsory in Oman as the minimum coverage required by the law. It covers damage or injury you cause to other people or their property. This is the legal minimum required for vehicle registration and road use in Oman.
  • Comprehensive insurance: This one is optional but common and takes protection to the next level. This type of motor insurance includes everything that third-party offers, plus it covers damage to your own car. So, if someone hits you, you can claim against your own policy. This insurance also protects against theft, vandalism, weather damage, and break-ins. Overall, you’re getting a good balance between protection and cost. Most car owners in Oman choose comprehensive coverage because they want their own vehicle protected without paying extra. It's ideal if your car is newer or if you rely on it daily.
How are premiums calculated?

Here are the factors that affect your premium:

  • Your vehicle: Age, vehicle value, make, model, and engine size matter. Newer cars with safety features cost less. Luxury or sports cars cost more.
  • Your age and experience: Younger drivers have to pay more. Drivers over 26 with 3+ years of experience get better rates.
  • Your driving record: Clean records translate into lower premiums, whereas if you have had accidents or violations, you might have to pay higher costs.
  • How you use your car: Personal use is cheaper than commercial use.
  • Your location: Urban areas may have higher premiums than quieter regions.
  • Type of coverage: Some types of coverage cost more than others due to their inclusion. Ideally, it is better to choose a value-for-money policy like Liva offers.
  • Safety features: Anti-theft devices and security systems can lower your premium.
How to choose the right motor policy?
  • Step 1: Assess your specific needs: You need to ask yourself these questions:
    • How much can I afford to pay if my car is damaged?
    • Is my car new or old? 
    • How often do I drive?
    • What's my monthly budget? 

Make sure you answer honestly, and your answers will guide which coverage level makes sense most for you.

  • Step 2: Understand what's covered in your plan: Before signing, you need to know exactly what your policy includes and excludes, basically the insurance coverage. Primarily, you should ask about:
    • What's the excess or deductible?
    • How long do claims take?
    • What's the reporting process?
  • Step 3: Check the reputation of the insurance provider: You must choose a company that you trust and that many others have trusted and can vouch for. For example, Liva Insurance has won multiple MENA IR Awards and AIWA Awards for excellence. This shows commitment to quality service and fair practices. When you need to make a claim, you want a company that actually comes through.
  • Step 4: Assess your specific needs: You need to ask yourself these questions:
    • Limits and sub-limits, not just the premium figure
    • Optional add-ons such as roadside assistance, windscreen cover or a replacement vehicle

What seems cheaper can become costly for you if the cover is thin.

  • Step 4: Think long-term while choosing an insurance policy: Sometimes paying a bit more for better service is worth it. A company that settles claims quickly and treats you well is invaluable.
Conclusion

Motor insurance protects more than just your car. It protects your financial security and your peace of mind.

Making an informed decision can save you tons of money, protect you from hassle and stress, with invaluable peace of mind as well.

You should take your time to compare the available options. You must choose a policy that meets your requirements and budget.

At Liva Insurance, we make buying motor insurance online simple and accessible. With over 190 service touchpoints across the GCC and a dedicated team of 500+ staff, we're here to help.