Family Insurance Types

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Student’s Name



The equitable reassignment of risk and jeopardy with monetary value is the primary definition of insurance (Clarke, 1997). Insurance services are varied and cover numerous fields. Beneficiaries of insurance services may be institutions, parastatals, businesses or even families (Ferrarini, 2006).

Family Insurance Types

Among the most common insurance types that are secured by family households include property insurance, travel insurance, health insurance, and life insurance. Travel insurances offer compensation for inconveniences met during long trips (Ferrarini, 2006). Health insurance helps families meet medical bills that fall beyond the household income on one hand. On the other hand, life insurance offers monetary compensation for loss of loved ones. Property insurance is a reimbursement for property damage or complete loss (Merkind & Stuart, 2004).

AED 200, 000 Car Budget

Car Model

With a 200, 000 AED budget, my objective would be to purchase a car with powerful and modern features that still allows room for purchase of the best insurance cover. That would influence my choice to a Toyota 4 WD Landcruiser automatic with a horsepower of 3500cc. The vehicle is averagely priced at 185, 000 AED. The horsepower allows for regulated fuel consumption hence reducing expenses.

Quotations of Insurance Companies

Several companies have sprung in the recent past to offer insurance services in the UAE. Emirates Insurance Company (Eminsco), for instance, has grown to become one of the dominant factors in the industry.

American International Group, Inc (AIG), is the other company that has gained ground in the UAE

Comparison and Contrast Between Eminisco and AIG

Emirates Insurance Company (Eminsco)

American International Group, Inc. (AIG)

Ø  Third party car insurance policy covers only covers damage to property and or property loss in the event of an accident

Ø  Third party insurance covers damage to property, both of the car’s owner and of other victims of the accident.

Ø  Third party insurance for a Toyota 4 WD Landcruiser worth 185,000 AED costs 1,800 AED

Ø  Third party insurance for the same car model costs 1,700 AED

Ø  Comprehensive insurance covers all inconveniences burdened on a client in case of an accident

Ø  The comprehensive cover caters for all inconveniences burdened on a client in case of an accident, just like Eminsco

Ø  Comprehensive cover costs 4,500 AED

Ø  Comprehensive cover costs 4,150 AED

Ø  Comprehensive cover has a 21-day lease period in case of loss or damage to car

Ø  Comprehensive cover has an added advantage of a three-month lease period of another car in case of loss or damage to previous car.


My preference would be a comprehensive protection from AIG because apart from the compensation, they also offer a three-month lease period in case of serious accident or loss of car. In as much as the compensation offered by Eminsco meets the challenges set by AIG, the rental period is quite limited and is set at 21 days. AIG also has the advantage of economy of scale.

Difference Between the Motor Insurance Types

The two types of motor insurance have variations that range from price to cover (Clarke, 1997). The Third Party insurance cover offers compensation for occupants of a vehicle in two dimensions. The first dimension is angled at covering the losses incurred through property damage to individuals whose property were at the accident scene. The second option covers theft of property or loss through fire in case the vehicle is stolen or catches fire. The insurance of the Third Party covers not the damage to or loss of car.

On the other hand, Comprehensive insurance is more diversified and covers all aspects of risks and losses that can be incurred in the event of an accident (Ferrarini, 2006). It may cover damage to both the vehicle or to property at the scene of the accident. Like the third party, it also covers loss of property through theft. The cover may also come with additional services like lease of another for the duration in case of theft or complete damage (Merkind & Stuart, 2004).

The Third party insurance is offered at a lower charge compared to a comprehensive insurance. That is a resultant of inclusion of a wider range of risks. It is the risk range covered by a comprehensive scheme that makes it a better option (Merkind & Stuart, 2004).

Choice of Insurance Cover

The Third Party may not be necessarily cheaper compared to the comprehensive cover despite the few risks it covers (Merkind & Stuart, 2004). Moreover, it doesn’t provide satisfaction for compensation of losses. Its provisions are mere consolations and still leave the owner with great financial and emotional disorientations. I would, therefore, choose a comprehensive cover for my car so accrue the full benefits of insurance and avoid tremendous financial losses (Merkind & Stuart, 2004).

Travel Insurance

The inconveniences incurred on the course of the trip may be rare, but all the same are capable of an occurrence. As such there is every need to insure the travel to avoid irreversible damage or suffer a complete loss in the event of an accident .............

Type: Essay || Words: 1841 Rating || Excellent

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