So the funds as per their operations are divided into two mainly two types:

Takaful Insurance
Conventional Insurance

Takaful

So what is Takaful car insurance?

Takaful comes from the concept of Islamic jurisprudence and as such is grounded in “Muamalat” the basis of the Islamic law that covers commercial dealings. Primarily, it provides for a co-operative system of reimbursement or repayment in case of loss. Its evolution grew out of a belief for some that traditional insurance concepts foster forbidden riba (usury) and gharar (excessive uncertainty) and that therefore Takaful motor insurance could provide a sharia-compliant alternative that would prevent religious compromise to achieve security.

While the outcome to the customer is similar to traditional car insurance provisions, motor Takaful is a co-operative system in which members make shared contributions, and returns are managed via cooperation for the good of all members and this is procured as a joint understanding for all parties involved.

This seemingly more altruistic approach appears to be appealing to consumers as the global Takaful insurance sector is expected has surpassed $20 billion since 2018; although the worldwide figure for conventional insurance remains well into the trillions.

Benefits:

Sharia, or Islamic, compliant
Takaful policyholders maintain the right to share in the surplus that accrues from proper management of a Takaful fund
Community well-being, optimizing operations for affordable risk protection
Funds are only invested in sharia-compliant businesses
Mandatory for those receiving loans from Islamic Banks

Well, the reality is that it is now somewhat redundant to refer to non-Takaful car insurers as only ‘traditional.’ While several well-established names in the industry have been around for over 100 years, the growth and power of the market have meant that even these brands have embraced the changes necessary to continued success.

Conventional

The conventional car insurance is the age-old car insurance which offers coverage of cars based on the fixed premiums paid depending on the premiums paid and the model of the car. The premiums are paid as per the coverage required from the car owner. It’s more developed and the companies have long-established legacies when it comes to providing car insurance conventionally.

Even the most long-standing providers have understood that today’s modern consumer prioritizes convenience and price and so industry competition has resulted in far greater flexibility for customers in the type of policy they need, including customization, quicker access to obtaining the right policy (mere minutes in some cases) and a far more appealing cost that won’t just grow like a weed every single year.

Benefits

A lengthy legacy of performance and stability
A wider range of options to choose from
Innovative flexibility and customization opportunities

Does the Takaful and conventional have same insurance types?

Yes, the takaful and the conventional “Traditional” car insurance has the same plans and same premiums with coverage’s, they both differ in their back end operational definitions and modalities of its working. The funds which are used in conventional Insurance have a different than for the Takaful window.

What Plans are available in the market?

There are multiple plans available in the insurance market place; the plans can be procured by an individual based on their needs and premiums. Plans also vary based on their cars and models, for instance, some plans may be available for an old car that is 5 years or more than 5 years old model and some plans and coverage are available for both.

Third-Party coverage (Basic): the third party coverage is the most basic coverage, which is mandatory by the Government of Pakistan, what is the third party coverage it’s the shield that can be used when your car hits the other car if both the parties have the third party they can reimburse each other through their insurance and they are compensated through their providers.

The loss your car incurs is not covered by your insurance provider but the loss incurred by other car is subject to coverage.

3T: The 3T is the magical word, which means this term covers three of your losses if God forbid incurred, the first T stands for Theft; if the car is stolen from any parking or any place the insurer shall reimburse the stolen car if the situation may arise.

The second T communicates TOTAL LOSS which means if the car runs into in an accident and is damaged beyond repair the compensation is provided for the whole car and the car is considered to be an as complete loss.

The third T connects itself to the THIRD PARTY LOSS….
It means that during any situation if your car damages any other car on the road while driving or under any circumstances that loss is paid by the insurance provider, the insurance is claimed and after being inspected the damage and loss is paid by the company that has insured your car.

Disclaimer, Thing to Remember: the coverage of the car, in case of theft and total loss, depends on the VALUE THE CAR HAS BEEN INSURED OR THE PRESENT MARKET VALUE OF THE CAR, whichever is lower at that moment. The 3T plan is only available for the cars of age five and above.

Private Car Comprehensive: This type of insurance covers the car from bumper to bumper, it does not leave any aspect of the coverage out of its area of coverage, for instance, if the car is damaged, stolen, destroyed, destroyed in the act of terrorism, destroyed by natural disaster all this and every part is covered under the policy of private car comprehensive.

This policy is provided for new cars for the age up to 5 years, there is certain depreciation applied but that is only applied to if a part is replaced with a new one but the labour is 100% covered under the insurance umbrella.
The private car comprehensive is more expensive than other insurance plans as new cars have higher value and have a higher risk attached to them.

Old Car Comprehensive: The old plans have lower premiums and 60% depreciation value attached to all cars. The plan covers the car from bumper to bumper.

The same as the private car comprehensive plan, but this plan is specifically designed for an old car for age five and above.

Some plans are provided by TPL, those are different from other providers, for instance, its plans like the coverage provided in these plans are value-added as additional covers can be bought by paying extra in addition to the Premiums.

Comprehensive: TPL insurance’s comprehensive plan covers your car from minor damage to a total loss. Get your car insured at the premium rate of 3.25%

5T: Secure your car with 5T plan of TPL insurance and get 5 benefits of terrorism, total loss, theft, third party and tracker at the premium rate of 2.5%. plus it’s the premium plan offered by TPL in which you can add-on services as per your needs and requirement.

3T: 3T plan of TPL insurance protects your car and gives 3 benefits like theft, third party and tracker at the premium rate of 2.35%

2T: Get basic coverage of third party and theft with the insurance 2T plan at the premium rate of 0.99%

Secure T: If your car model is of 2015 and before then get it covered with the insurance secure T plan to protect your car from any damage and loss at the premium rate of 2.50%

Self-insurance: Self-insurance plan covers your car from any financial damage by giving you 90% coverage at the premium rate of 2.25%

TPL Tracker: You can even get TPL vehicle tracking solutions are equipped with user-friendly Tracker app which is great for businesses, car enthusiasts, families with elderly drivers or newly licensed teenagers learning to drive the family car. If you want to monitor where they are or have been or that they reach their destination safely, you can use the Tracker App through your smartphone, tablet, or computer.

Distinctive Characteristics of TPL Insurance:
The calendar year 0-3 months no depreciation (January to March)
3-6 month-end 5% (April to June)
7-12 month 10% (July to December)

Why there is a difference between the old car and new car rates?
There is a difference between old and new car because old car parts are cheaper than the new cars and the cost of damage and repair is also lower than the new cars, also new cars have more risk of theft attached to them.

Why no 3T available for new cars?
3T is not available for NEW CARS because of high risk and expensive repair bills.

Simple and easy process to acquire car insurance…..
There is a very simple and easy to acquire car insurance process, log in to Smartchoice.pk, enter your card details, for example, the expected/market value of your car, model of your car, make of your car etc. all the car insurance providers with their premiums and coverage would appear on screen just click on the type of coverage you require, enter your basic contact details and within 24 hours you would receive call from a car insurance expert, who would guide and advise you to the best plan as per your needs and requirements!

Is Takaful or Conventional Insurance Cheaper?

The conventional insurance and Takaful both have the same premiums as they have the same plans but the only difference is in the back end handling of funds. Takaful operates as per Shariah and are Shariah-compliant.

Do Takaful and Conventional Insurance Policies Offer Different Types of Products?
Both types of policies offer a wide range of products for motor, health, life, home and travel insurance as well as many other types of protections. Conventional and takaful insurances offer standalone plans as well as rider options.

However, additional takaful products might cater to special Islam-related activities. For instance, Muslims might appreciate Hajj and Umrah takaful plans that cover travellers making the pilgrimage for travel inconveniences, medical expenses and accidents.

If you are looking for insurance plans, whether conventional or takaful-based, do have a gander at our comparison page first to discover the most affordable plans with the best terms. Visit smartchoice.pk you one-stop-shop for all insurance needs.

Khurram Zahid

The post Types of Car Insurance Available in Pakistan! appeared first on Smartchoice.pk.

We should ensure that if at some point on the road while driving or parked, by us or someone else these scary things materialize we don’t have to feel the brunt of its repair from our own pockets.

To avoid this pocket pincher, we should get our car insured and while getting it insured there are some unknown or rather undisclosed facts that one should know about before embarking on the journey to procure car insurance.

1. Switching providers will save you money

The insurance companies offer multiple incentives to the new customers and generally have better/promotional offers to attract new customers that a pre-existing customer often cannot avail; sometime the customers may also get lucky to get low car insurance rates.

2. Always compare insurance “Quotes” first before buying Car Insurance

You should never treat an insurance agent’s word as the Holy Grail. Of course, they all claim to be the best in business with the best rates to offer to supersede all, but none of these overused phrases should be taken seriously or believed in totality.

The cold, hard facts are your only real friend. So, when you’re deciding on an insurance company, don’t settle on the first one that says they offer the lowest prices; you should do your research and compare quotes, you can find all the car insurance quotes and rates from all the best providers in the market at smartchoice.pk, your one-stop-insurance supermarket.

3. Document everything thoroughly to get Claim Hassle-Free

When you get into a situation, for instance, an accident document everything you are claiming for, you should have substantial evidence to support it E.g.: Photos, they will be your best friend and it’s supremely important to remember that you have to take photos of everything to file your claim.

4. Some of the most helpful coverage’s are the cheapest

The coverage you are required by law to buy is the third party liability insurance typically should be expensive as it covers the risk of you damaging the property of someone, means your insurance carrier is on the hook for hundreds of thousands of Rupees for any damage you do.

5. There is a reason your premium is super low

Some things are too good to be true, and that applies to anything involved with car insurance. If your rates are suspiciously low, then you may want to look over your coverage with a fine-toothed comb. Often, agents will lower your coverage or raise your deductible to get the premium to come down to an ‘unbeatable’ price.

This is an important aspect to factor in when you’re comparing quotes, as well. If you’re deductible is raised from Rs10, 000 to Rs40, 000, that’s going to bring your premium down because it will cost you more in the case of an accident.

These are few of the important things that being an informed and educated customer to make a better and beneficial decision, you should be sure you have the adequate amount of auto insurance coverage in the event you are involved in an accident, so Get Insured Now!

Khurram Zahid

The post 5 Unknown Facts about Car Insurance appeared first on Smartchoice.pk.

When you’re picking vehicle protection it’s imperative you have the actualities so you can settle on an educated choice. Understanding what you’re secured for will enable you to keep away from unforeseen expenses and give the  genuine feelings of serenity.

With regards to purchasing protection for your vehicle, you should think about a lot of imperative variables. One of these variables is the sort of protection inclusion you are searching for your vehicle. Individuals will in general confound between a Comprehensive Insurance arrangement and a Third party Insurance approach when searching for vehicle protection. This article will assist you with understanding the essential contrast between both these vehicle protection arrangements:

What is a Comprehensive Car Insurance Plan?

A far-reaching vehicle protection plan offers total assurance against the harms to your vehicle because of a mishap or a street disaster. This arrangement is known as a Comprehensive Insurance since it gives inclusion to the harms to your vehicle, Third Party legitimate risk, theft, alongside the individual mishap inclusion. The inclusion can be supported by choosing extra covers, for example, motor defender, extras spread, medicinal costs, zero devaluation spread, and so forth. This spread is generally well known, as it offers undeniable inclusion and it leaves the policyholder peaceful.

Read also: 10 Tips to successfully claim car insurance

A comprehensive car insurance plan incorporates inclusion for flame, theft, common and man-made calamities, for example, a tornado, sea strom, vandalism, harm caused to your vehicle by heavy substance, falling objects, common unsettling influence, for example, a mob that makes harm to your vehicle.

Benefits of Comprehensive Car Insurance

1. It pays to replace your vehicle if it’s stolen

Would you be able to stand to purchase another vehicle like the one you had if yours was stolen and not recouped? What if that the appropriate response is no. The comprehensive cover will help you to replace your car back.

2. It pays to repair damage from animal collisions.

In case if the crash of your vehicle is from an animal in certain cases the insurance will pay for the damages yet the whole situation will fall under the ‘Impact inclusion’ which means magnitude of damage occurred after the certain incident.

3. It pays to repair climate damage.

Golf ball-sized hail could leave marks everywhere on your vehicle. Or then again a tornado could lift it up and drop it a couple of houses down. Comprehensive coverage pays for vehicle fixes due to both of these situations. On the off chance that your vehicle is totaled by a climate-related occasion, your safety net provider will issue you a check for its esteem.

What is a Third-Party Car Insurance Plan?

A third-party insurance plan gives inclusion against any lawful risk emerging out of wounds to an outsider when the policyholder is to blame. It covers harms and wounds brought about by the Insured vehicle, to a third party or property.

Also read: How to Buy Your First Car in Pakistan Even If You Have Little Knowledge About Cars

The dimension of the cover offered by third-party insurance strategies can be useful for drivers that are bound to guarantee for any harm they cause when driving – and for drivers that could bear to pay repair costs for their own vehicle without expecting to guarantee on their Insurance.

Benefits of Purchasing a Third-Party Car Insurance Plan

A third-party car insurance plan covers a vehicle’s owner against any legal liability, including death or bodily injury to a third party or damage to their property with the involvement of the insured vehicle. As per the Motor Vehicle Act, a third-party claim can be filed under the category of “no-fault liability claims” in which the claimant is not obligatory to allege or prove the negligence on the part of the involved vehicle that has caused the accident or “fault liability claims”.

Difference between a Third-Party Cover and Comprehensive Cover

Fully comprehensive car insurance offers the same level of protection as a third party cover for fire and theft  – but it also offers cover for any damage to your own car during an accident and any injuries you might get. The upsides and downsides of these two sorts of vehicle Insurance plans rely upon numerous components. It is significant to comprehend these elements with the goal that you can investigate, look at, and afterwards settle on an astute choice.

1. The Value of a Car

in the worst case scenario that the estimation of your vehicle is low, it’s prescribed to purchase Third party insurance just, as the repairs to the damages could be overseen all around effectively. It is efficient to pay the repair charges when contrasted with paying for the high premium of a far-reaching protection spread.

Then again, if your vehicle is new and costly, it is prescribed to purchase comprehensive car insurance inclusion.

2. Coverage

A Third Party Insurance plan gives inclusion against the damages to any third party vehicle and real wounds caused to an outsider because of a mishap. There will be some other insurance providers that will charge you for third party inclusion.  It doesn’t give any inclusion against the damage caused to your very own vehicle.

Also read: Conventional Car Insurance VS Islamic Car Insurance (Takaful): What’s the Difference?

In the event that you’re looking for inclusion for your vehicle, you should purchase a comprehensive car insurance plan. It offers a wide inclusion, as it incorporates outsider obligation too. Comprehensive car insurance is costly when contrasted with a Third party insurance plan, as it offers more extensive coverage.

3. Costs

A comprehensive plan is costly when contrasted with a third party insurance plan since it offers inclusion for wounds, harms, and theft.

It is a great idea to be protected than sorry. A street setback is awful and it can wash out your reserve funds in one go. There can be minor varieties with regards to the rejections and advantages, as it fluctuates from insurer to insurer. In the event that you need peace of mind and the correct protection inclusion for your vehicle in the meantime, at that point, you should purchase a comprehensive car insurance plan since it will satisfy all your desires related to protection and coverage.

Khurram Zahid

The post Difference Between Third Party And Comprehensive Car Insurance appeared first on Smartchoice.pk.

It’s a company on a mission to provide innovative solutions to meet the need of individuals having diverse needs by providing various packages that fulfil needs and requirements of every person be it an individual looking to get himself insured against obscurity, the individual can get a Jubilee General Insurance personal health care plan, to get family insurance one may look-up for a family health care plan that shall cover husband wife and up to four children.

A women-centric plan that is all about making sure that all of her needs are being taken care of even, “A Strong women can also be vulnerable at the same time” understanding that vacuum in the society, Jubilee General Insurance has come up with a tailored plan to fulfil this need with the right understanding of what “A Woman” needs with their “Her Care” Plan.

Jubilee General Insurance also provides comprehensive coverage for the car, as it ensures that the car is protected from bumper-to-bumper through its packages like, Private car comprehensive and old car comprehensive, it also has 3T package that covers theft, total loss and thirty party liability having the best rates with swift claim settlement.

Jubilee General Insurance takes every opportunity to benefit the people as much as they can by providing discounts on multiple occasions like Blessed Friday 50% discount, Quaid-e-Azam day 25% discount, Pakistan Day 23% discount, these discounts on multiple occasions ensures that the coverage reaches to the maximum people out there so that they can protect themselves against unforeseen situations in their life that one may not be prepared to face and may put a lot of strain on an individual’s financial health.

This year around again Jubilee General Insurance is giving 23% discount on all its online insurance products, to benefit people and motivate them to get insured, the company is making multiple efforts as it has understood that Pakistan is a country that still lacks awareness and penetration of Insurance in the society and to build a rationale that “Getting Insurance is not a luxury but a necessity”.

In this journey Jubilee General Insurance has officially partnered with Smartchoice, an online financial comparison platform, Smartchoice helps people to make informed decisions and also guides them to the right fit policy.
The Jubilee General Insurance products be it car insurance, travel, personal accident or health insurance, all are available at Smartchoice platform, anybody can buy whichever policy they need by comparing one of the jubilee policy against another simply and make the right decision, these products are available at the same rates as Jubilee General Insurance and easy to buy, through just three major steps, Search-Compare-Save and get the policy you need.

Jubilee General Insurance has been passionately following the vision and mission of the company to ensure quality care available at affordable rates, easy access and premium customer service so when an individual, “Gets Insured” through Jubilee General Insurance they live hassle-free.

Khurram Zahid

The post Coverage plans that fits the Bill: Jubilee General Insurance appeared first on Smartchoice.pk.

It is, therefore, advised to have an insurance policy to cover the same. The Motor Vehicle Act of 1939, chapter VIII section, 96 and 97states (96: Duty of insurers to satisfy judgments against persons insured in respect of third party risks, 97: Rights of third parties against insurers on insolvency of the insured) also makes it mandatory to buy a car insurance policy before taking the wheels on the road.

The claim process for making a Car accident insurance claim is very straightforward just like buying a car insurance policy.
Here are 3 simple steps for you to follow while filing a car insurance claim:
Register your claim with your insurance provider and keep the details like policy number, engine chassis number, accident date and time, handy.
Drive your car to the nearest garage for repair, or have it towed depending on the severity of the damages.
Submit the copy of all the important documents to the garage, so that they can receive the amount from the insurer according to the criteria mentioned in your policy document.

Here are the top 10 tips that will be useful while filing a successful car insurance claim: Inform your insurance company about the car accident as soon as possible.
Inform the police in case of accident or theft. Keep the copy of FIR with you for claim processing.
Keep the following details at your disposal when you contact your insurer (online/offline):
a) Policy number
b) Engine number
c) Chassis number
d) Accident details like location, date and time of the accident
e) Km. reading of the car

Fill out the claim forms carefully. Take the help of insurer’s executives and furnish correct and adequate information about the incident.
Click pictures or make a video of the accident spot which may help the police and the insurers in their investigation.

Let the insurance company investigate the cause of the accident on their end. Do not interrupt their survey as it may mislead their analysis.

Never blow things out of proportion when reporting the incident. Stick to the facts and be explicit.
Follow up with the insurance company regularly and update yourself with the proceedings of the claim process.
Be honest about the incident. The Insurance Company will reject your claim if they find out that the claim is fraudulent.

Some insurance companies are very quick in settling insurance claim, companies like Jubilee General Insurance with AA+ ratings with their attractive packages such as private car comprehensive that covers the car bumper-to-bumper if your car model is 2014 and above, if you have a car that is 2013 and below you can also get your covered bumper-to-bumper under old car comprehensive package, there is also a 3T package that covers the car for three main threats those are third person liability, total lost ( if the car is completely destructed in any kind of accident) and theft.

Its one of the best company in Pakistan to get your car insured as their claim service is quick and just a call away, Car insurance from Jubilee General Insurance is the right way forward where your car is concerned.

At the time of insurance, an individual can buy insurance as per need and requirement and the kind of coverage they are looking for, as buying insurance is mandatory as per law and it also protects the entities for any unforeseen situations/circumstances.

Keep in mind the above pointers when you are filing a car insurance claim, to get your claim easy and hassle-free and swiftly.

Khurram Zahid

The post 10 Tips to successfully claim car insurance appeared first on Smartchoice.pk.

As a parent, guardian, elder of the family you can play an active and crucial role in your teenager’s driving lessons. Here are seven road safety tips to share with your teen to encourage them to be better, safer drivers.

1. Wear Your Safety Belt

Insist that your teen always wears a safety belt, even for short trips to the shops. According to the research, you’re 10 times more likely to be severely injured in a road crash if you’re not wearing a seat belt.
Seat belts work because they distribute forces from a crash across the chest and pelvis, some of the strongest parts of the body. So that belt could mean the difference between getting a few bruises versus your body flying into the windscreen.

2. Put the Phone Away

While driving the individual shouldn’t be allowed to use the phone as the physical, visual and cognitive distraction leads to unsafe driving and increases the odds of a crash. Before starting the car, have your phone on silent and put it out of reach. If they need to use the phone, stop and park where using a mobile phone won’t be a danger to themselves or to other road users.

According to researchers, each time a driver writes and sends a text; his or her eyes are off the road for an average of 4.6 seconds, enough time to drive the length of a game pitch. Remind teenagers that it’s their job to watch the road when driving, and no one else can do it for them.

3. Stick to the Speed Limit

Speeding is the biggest killer of young drivers, they should remember that there’s no pressure to keep up with other vehicles in traffic. Keeping to the speed limit will not only reduce the risk of an accident but also help drivers avoid costly traffic fines.

4. Check Your Blind Spot Every Time

Side and rear mirrors do a good job of showing what’s happening behind the vehicle. However, they still leave areas big enough for other cars, bikes and people that we cannot see that easily. That’s why drivers should check their blind spots whenever they are:

● pulling out from the curb
● Parking or leaving a parked position
● during a three-point turn
● merging with other traffic
● Changing lanes (e.g. when passing or overtaking)
● turning, where you’ve seen another car
It’s also possible to minimize the size of a blind spot by adjusting the side mirrors so that your own car is out of sight.

5. Sleep, Then Drive

Do you know that driving sleepy can be just as dangerous as driving intoxicated? Sleepiness impairs a person’s attention, working memory and coordination skills, all crucial for safe driving.
An estimated 15 per cent of crashes are caused by fatigued driving, according to research Chris Watling. “Young drivers don’t view the dangers of sleepy driving equally, despite the crash risks being similar.”
Teaching the teens the warning signs of sleep driving, these include daydreaming, difficulty focusing, frequent blinking, heavy eyelids and trouble keeping the head up. Let them know it’s OK to pull over for a 20-minute power nap, and then again get back on the road more rested.

6. Turn on Your Headlights

While it’s an obvious thing to do at night, having your headlights on during the day can make it easier for other drivers to see you. This can be particularly helpful during times when the sun affects visibility (e.g. driving in the early morning or evening).
Road safety campaigner Clive Matthew-Wilson points out: “You can’t control the other drivers on the road. However, by having your lights on during the day, you can make sure other drivers see you before a collision take place.”

7. Get Insurance

While learning to drive, one thing the parent and guardian needs to ensure is to get the car insured, because a person can only control how they drive but cannot be responsible for how the other person drives on the road, to create a cushion against the known-unknown-risk, it’s better to be covered so the beginner driving does not have to worry about not just hitting his own car but other person car as well , so insurance works as not only having a cushion but also sharing the risks as well with the insurance provider, so before you give the car to your child, nephew, younger siblings make sure the car is insured, reducing the chance of your wallet being heavily affected in times of crises.

As important is the phase to learn to drive, more important is to drive safe and get a license, driving without license is illegal and a criminal offense, as before you learn you learn to drive to get a learners license and after you have learnt to drive, apply for a permanent driving license so it’s a bearing proof that you are qualified to drive on road independently, you are familiar with all the traffic rules and regulations

Khurram Zahid

The post 7 Important DrivingTips for Young Drivers appeared first on Smartchoice.pk.

Here are some tips that you can carry in your daily life to become a smart spender and to use the given services smartly and economically.

Use discount coupons wisely:  

Coupons can be a great idea to save money but it is important to make sure that you are not using coupons to buy unnecessary items just because you can save a few rupees. For instance, if you are using a coupon to buy a bulk pack of cosmetics that you have never tried, you may get stuck with a product that sooner or later would be wasted if you didn’t like it. So try to use coupons for the items that you are sure about or you use them on regular basis. With intelligent use of coupons, you can surely save yourself a handsome amount of money. You can also take help of social media pages of the companies that are offering discount packages or can help you use your coupons to shop grocery for you. It will help you to stay up to date with the latest deals in town and will help you take maximum advantage of it.

Cell phone plan and use:

Cell phone a basic necessity of every person on this date and with a cell phone you can surely stay connected with your peers. However, with its extreme importance, it is also something that takes much of your monthly earnings. To aid the users the cell phone companies keep offering short and long-run plans for the users. You need to check if your cell phone package matches your needs or not. If you are paying for an unlimited data and not using it, it’s the time to shift your package. Also, check for your sms, data and call usage and buy a package accordingly.

Washing your car on your own:

There is no big deal in doing your own chores. Dealing with small activities at home like cleaning the garden or washing your car, will not only save you some money but also give you better health and some fun time with family if you get your kids involved with you for a car wash.

All that you need would be a bucket, soap and some old rags and you are all set for the amazing family adventure right in your garage. Although going to a car washer can be easier and quicker but it will also cost you a lot of money. Save that money for any better use.

Wearing clothes wisely:

Wear your clothes for at least 2 to 3 times before washing them or sending them to dry cleaner. We do understand that wearing Lawn suits twice, in the hot weather of Pakistan, is not a good idea but what about those jeans and jackets? What about your dress pants and suits? Washing them every now and they will tear them up quickly. The color will fade fast and it will surely lose the grace quickly.  

There is nothing bad in hanging these clothes again for a second use. It will save your dress from wear and tear, time of ironing them again and again, and the costs of washing or dry cleaning them every week or so. It will also help you keep your wardrobe look nice for the longer period of time and allow your favorite dress to make you look good for longer.

Pay bills and credit card payment on time:

This is a key to staying secure financially. Never delay your bills and credit card payments as just one small delay can end up making you pay hundreds of rupee in terms of late fee and other surcharges etc. Paying your bills on time not only make you punctual and teach you finance management but also impact greatly on your savings.

With the timely payment of bills and credit card can make you save the extra money in your safe deposit. On the other hand, late payments for the credit card will have a negative impact on your portfolio which will end up restrictions on many facilities that you could have availed if you had maintained a good portfolio.

Smart shopping with credit cards:

Having a credit card to be used in emergency and paying the credit card bill is not the only thing that you can deal with. A credit card brings you an unlimited amount of opportunities in life. Before you opt to buy a warranties item like any Mobile phone or LED TV, check your credit card. It is possible that the credit card you own offers an extension of the manufacturer’s warranty on items that you buy using the card. Although there can be few cards that can offer you such services, it’s worth doing research before making any such purchase.

Be careful about speeding on the road:

Yes! You need to slow down. It will save your life and a lot of money that you may need to give to doctors in case of any unpleasant incident, or the police may get you and charge you with a considerable amount of fine.

If you need to be somewhere at a specific time, let say a meeting or an interview, better is to set up the alarm and make sure that you are giving yourself some clear time gaps to cope with an uncertain situation. This small change in your attitude towards settling up things will not only save you some money but will also leave you with some better-settled rules for life.

No more smoking!

No, we are surely not up to give you some health advice but yes, quitting smoking will give you some financial benefits as well. We completely agree if you are not scared of cancer or you have some amazing health insurance policy to help you in any such case, but what about the impact of cigarettes on your pocket. Each pack of cigarettes costs an average of about PKR 100, which means that if you are smoking 3 packets in a week it makes 12 packets per month that cost PKR 1,200 and almost PKR 15, 000 per year. This amount is just for sustaining a bad habit that will surely lead you to bad situations as you get older. Remember in such cases, the physical cost is much more than the financial costs.

Become a handyman:

No need to become a jack of all trades but there are many small wears and tear that you can repair at your home or in the office with lesser knowledge about the issue. With the changing technologies, YouTube is also a great option to educate yourself to deal with these minor repairing tasks at your home. You can also find many books in the market about different How-To tips. Change your approach of calling experts every single time you need some help, Try to be your own boss.

Sticking to the budget:

There are hundreds of budget management applications that you can have right on your smartphone. Making yourself a budget is always the first step to save money.  However sticking to the decided budget is a tough task for many people, especially when they have an excessive money in hand. No matter how much excitement and fund you can have with that amount in hand, sticking to your budget is very important for you to stay independent and secure financially.

Here important is to write down your budget. No matter how much concerned and keen you are to stick to your budget, important is to take notes of everything that you have spent on and what was your budget demand.

Staying organized and advance planning are two major things to ensure and economical lifestyle. Planning in advance will not only let you find and avail amazing discount offers and other opportunities but will also help you keep a check and align other activities in your life, leading you to financial peace and stability.

Khurram Zahid

The post How to Live a Penny Pincher Life and Save Huge Money? appeared first on Smartchoice.pk.

There are different measures taken by the Auto Development Policy makers to make sure that the suppliers are dealing with the trustworthy models. It has helped a buyer to access a car that confirms to all the needs and wallet of the buyer. To alleviate the confusion of user, we have thematically divided the factors that play their role in influencing the buying decision of a person.

Since for many in the middle class of Pakistan, buying a car is the first big purchase thus they need to have extra attentive and concerned about the machine they are going to pay for. Although, once you have made your mind to buy a car for you, you will be seeing latest offered and a number of options around you. As a base tip, we would like to say that never get swayed by the colorful attractive brochures or the gleaming automobiles that you can see in the advertisement. To play safe, you need to consider the following steps in mind if you need to make a right buying decision.

Determine Your Needs:

First of all, ask yourself the reason for buying a car. Are you looking for a vehicle of your own to drive you down into the town? Are you looking for a mean for daily commute? Or are you looking for a vehicle that can help you to have a comfortable drive on the highway? Do you need to make a trip to another city, every weekend or less often? How many people will you have a drive on the regular basis?

Remember your lifestyle has a major role to play in the selection of the car. It helps you to understand what car you need to have in terms of size, capacity or mileage? Answering these questions clearly will help you limit your car search field and will help you make a decision quicker and smarter.

Generate Information as Much as Possible:

Once you have shortlisted the cars that suit your needs and lifestyle, it’s time to do some serious research. You need to generate information about the shortlisted make and models of the cars you are thinking to choose from.

Researching is made easy with the advanced internet services. They can generate you information in bulks.  Review the handling comfort and other classifications of the cars you are focused on. Compare the results and filter your shortlisted cars to find the most suitable option to consider. To make sure that you have to access authentic information, visit the official website of the manufacturing company. Official company websites provide the most accurate information about the specifications and abilities of a car. They will also give you the actual price of the car.

Reviews are another important part of the research; you need to check what existing users had said about the car. For reviews you can also visit third party websites that are dealing with the supply of cars, users do leave a comment about their experience on such websites.

Your Financial State:

Money is the most important factor when it comes to buying anything, big or small. As cars and homes demand some major investment, the money factor becomes the backbone of the entire scenario.

Before taking the driving wheel of your very first vehicle, you need to make sure that you have sufficient amount of money to make the purchase. If you do not have enough money to pay in cash, you may need help from the bank. Banks may help you figure out your borrowing capacity according to different payment modules. They may offer you a three to seven years plan to pay for the car. However, this facility is served along with a specific and pre-defined interest rate. Once you have sorted out the payment procedures and amount, you will be able to narrow your search and focus on the make and model that is in your budget.

The Periodic Charges:

Have you considered the recurring charges that you will have to deal with, being a car owner? Yes! We are talking about the maintenance, petrol and parking charges etc. Counting all these charges in your monthly budget, along with the installments for the bank will make the car quite expensive for you. So you need to make sure that you are able to afford these periodic payments before you proceed to buy a car.

The Insurance Quote:

Now, this is something that offers you a broad field to play in. There are banks that offer insurance service when you ask them for a car loan or proceed to have a car on installments, and then there are companies that are specifically dealing with insurance services. These companies are then divided into different categories of insurance. Auto insurance is something that will work for you when you are signing an agreement to own a car.

Car insurance is highly suggested by experts to keep yourself, your family and your car safe. Before buying a car, get an overview of the insurance premium and what plan you are willing to go with. As different insurance companies offer different auto insurance plans. You can check all the basic details about Auto Insurance by clicking here.

A Vendor You Can Trust:

You will need a dealer to buy a car. This rule implies to both used and new car sale and purchase. If you are looking for a used car, you need to get it inspected by an expert to make sure that the car has genuine parts and the condition of the vehicle is eligible to be purchased. You can ask a trusted friend or family member whom you think have had enough experience in dealing with car assessment. If you think that a seller is pressurizing you, the doors are open and you must move to another seller. You must keep in mind that there is no time to rethink, once you have booked the car, signed the agreement, there is no way back.

Look for Bargain:

If you have fallen for any specific car, you must visit the official website of the manufacturers. To check if there is any promotion available. The automobile companies keep offering a discount on different occasions. So you can wait a bit for the upcoming offer or can go for the recent one if any.

Try Before Buy:

Select and shortlist models and try them on the roads that you will usually be driving on. You can compare the performance and check if they are fun to drive or not. If you are keen to buy a car of specific model rent the same model and drive for about 1000 km. This trial must take 3 to 4 days before to you jump on the final decision.  Check how comfortable you feel driving it. This practice will give you a clear idea of how you will feel while driving a car of your choice. Check if the seats are comfortable and if the trunk is big enough to fit in your average luggage. It will also give you an idea about the consumption of fuel and will help you establish a clear idea about other ongoing costs.

Safe Some Extra Money:

If you have managed all these things wisely, you will surely be in your budget. And if it is really so, you can have the freedom to think about changing the color of the car. Or you can refurbish the interior of the car. You may think about adding a gadget to the dashboard or upgrade the music system. Certainly, for all such tasks, you will have to pay extra amount but you will have a highly personalized car that you will enjoy having for a long run.

Reading Terms of Agreement:

Before you sign the agreement, make sure that you have gone through all the stated terms and conditions. It may include delivery charges or any other additional cost. Being a buyer you have the right to get expert help by letting them review the contract and ask for a legal opinion. Keep in mind that there is nothing bad in getting a car of your choice but, getting stuck in?? something is never a good idea. Being careful is better than being in a problem.

New Car Vs. Old Car

There is a difference in buying a new car versus buying an old car. And here are the points that you must keep in mind while looking cars in any of these categories.

What Do You Need to Consider While Buying a New Car?

No one wants to regrets, especially while making a major purchase as that of a car or property. With a perfect plan of action, you can save yourself and avoid feeling guilty of signing an agreement that won’t work for you. Here are few points that you must keep in mind while buying a new car;

• Check for the possible options in a market
• Look for the most demanded item and what customers or users have to say about it
• Never compromise on your budget and try to find an option that suits your budget
• Research for the product as well as the company and check if any platform is offering a discount on it
• Consider the resale value as it is one of the most important things to keep in mind while buying any such thing. The resale value of the car depends on the condition make and model of the car and how well it is working in the market and on the roads
• Spare parts are other important elements that you must keep in mind while buying a new car. Make sure that the spare parts of the car are easily available in the market
• While buying for a vendor check for what after sale services are offered by the seller

What Do You Need to Consider While Buying a Used Car?

It is not necessary that you must buy a new car. You may get many options in used cars that are economical and can be a good return on investment. You may not know how the car had been used by the previous driver thus you will have to pay extra attention before paying for the car. Here are some quick tips that you need to keep in mind while buying a used car;

• Decide the type, make and model of the car you will prefer to find
• Start searching for the specific car type in the showrooms that offer use cars of that model
• Do not go for the new model cars, they may cost you more and if you opt to buy a used car of the latest model, suggested would be to buy it brand new.
• What are the arrangements of the parking area of the car?   Do you have enough space that is secure and you can place your car overnight?
• Check for the maintenance records to have the idea what changes have been done in the car, over the time. It will also include the assessment of the spare parts of a car.
• You will need to check many other things before buying it. You can check for the condition of body parts, gear knobs, foot pedals, switches and steering stalks, roof liner, windows and door panels etc.
• Checking for the noise in the engine is also a must before paying for it.

Documents that You Will Need While Buying a Car in Pakistan:

Up till now, the only thing that matters is money. Once you are done with the car selection, you need to pay attention to the documentation process. Without proper documentation and signed agreement, you cannot proceed with owning a car if you have not done proper documentation. It is a sensitive matter and you must handle it with care.

• The On-Road Costs: It is the overall charges that you need to pay to own the car legally. It is the combination of a registration fee and the insurance of a car in general. The registration includes; motor vehicle tax, withholding tax, multifarious and motor vehicle registration etc.
• Excise and Taxation: If you think you can skip it, you are wrong. They are the first one to be paid on the list. You can get all the information about the fee and processing from the website.
•  List of Main Documents for Application: You need to have a photocopy of your CNIC or person on whose name the car will be purchased and application to the excise and taxation officer for registration of the new vehicle.
• Document verification: For different cases, you need to have different documents for verification which include; sales certificate, sales invoice, auction Boucher if any and interrelated documents and bills.
• Residential Proofs: There are some basic documents that you will need to provide which includes; CNOC, utility bills, lease agreement, appointment letter and registry.

Although it may sound simple, buying a car demands a high level of experience and knowledge in each process. If you are buying a car for the first time in Pakistan, you need to make sure that you have completed all the necessary documentation and procedure and you are the legal owner of the car.

Khurram Zahid

The post How to Buy Your First Car in Pakistan Even If You Have Little Knowledge About Cars appeared first on Smartchoice.pk.

Takaful is another name of car insurance and it allows the premium from the policy holder to be used into funds and to support both the parties in case of any mishap or emergency. The idea of takaful is based on the theory that compliance with Sharia or Islamic Law. It is thus a risk transfer agreement that requires an active participation of both participants and the operators.

The main difference between takaful and conventional car insurance is the way risk is managed in both the cases. It also includes the different mode of management of takaful funds. There are differences between the operators and the participant’s relationships as well.

As compared to conventional insurance, takaful does not support any kind of uncertain activities when we speak about the risk assessment. Management of funds through interest or Riba is also not a part of takaful and these are some of the reasons that make takaful stands different from car insurance.

List of Car Takaful Providers in Pakistan:

Number of Companies are offering car takaful services in Pakistan, the list of which is:

• IGI General Takaful
• Adamjee Motor Takaful
• EFU General takaful
• Jubilee General takaful
• Pak Kuwait Takaful
• Pak Qatar General Takaful
• United General Takaful

List of Car Insurance Companies in Pakistan:

• Adamjee Insurance
• Asia Insurance
• Alfalah Insurance
• Askari General Insurance
• EFU General Pakistan
• Habib Insurance Company
• New Jubilee Insurance
• Shaheen Insurance
• TPL Direct Insurance
• Premier Insurance
• The United Insurance

The Difference?

Here are some of the core differences between the car takaful and conventional car insurance services that are offered to the people in Pakistan:

• The Funding System: The conventional car insurance is based on type of risk transfer management where the risk is removed from the insured vehicle with the help of the premium paid for the policy. While the takaful insurance is based on the mutual benefits of the policy provider and the car holder. This shared funding is also called as a common pool. The manager of the pool is the company that is offering takaful services.

• Surety: In conventional car insurance there is a high level of uncertainty and this is something not appreciated in Islam as well. This uncertainty is linked to the use of the money you have paid for the premium into the sources that can bring both profit or loss. While in car takaful there is a lesser amount of uncertainty as the money you have paid in terms of the premium will be invested in halal sources of earning money or profit and where the positive results are guaranteed or have clear grounds. It can also be called as a conditional donation for the worthy cause.

• In conventional car insurance there are more aspects of investment with the amount paid by the car holders in terms of premium but with the expectation that a handsome amount in terms of compensation will be paid in such a case if the loss they are expecting, does not happen and their car does not meet any accident or serious damage, they will lose the amount they have paid in the name or premium. While on the other hand if you are going for a car takaful services, the benefits of the paid premium will not be lost from the insurers or the car owner, in case there is not such bad incident. Rather both parties settle for a predefined setup to share the money once the policy duration expires.

• In conventional car insurance, any profit earned on the paid premium will be owned by the shareholders, and the policyholder or the owner of the car will not get any return by the end of the day. While we speak about car takaful, the participants there will get a surplus amount will be paid back to them in the name of a relationship of sharing contribution as per decided to be done by the end of the contract.

These are some of the core differences between the conventional car insurance and car takaful services that are available in Pakistan. You can also use the car insurance comparison as well as car takaful comparison tool powered by smartchoice.pk to have a clear idea of what car insurance service suits your needs the most. These tools will also help you save your time and money and make a handsome decision.

On the whole, there is a clear difference between the car takaful and conventional car insurance including the core idea, the benefits and the principles along with the investment activities that help the user to identify and choose any one of them on the basis of their preferences and needs. One can only make a better decision once they revise their needs and demands and what benefits they are looking to earn with the investment.

Khurram Zahid

The post Conventional Car Insurance VS Islamic Car Insurance (Takaful): What’s the Difference? appeared first on Smartchoice.pk.

Every car insurance service provider is coming up with different plans and offers different kinds of promotions for the clients. So many choices and offers make it difficult for the customers to assess and find which of the following suits the best to their needs and budget.  

Despite such extreme demand for car insurance in Pakistan, there is still lack of sufficient amount of information sharing about the matter. One of the main reasons is that the potential car insurance customers do not have access to reliable sources of information.

Keeping in mind the need to educate the car insurance customers, we have compiled some data that is really helpful for the users to do safe buying.  To assist the customers in a better way, below are some of the basic questions that are necessary for you to keep in mind if you are really looking for to go for car insurance and planning to buy a policy.

1- Why car insurance is needed in Pakistan?

Car insurance is the best way to own a car without putting a strain on your pocket takes no burden in case of damage, accident or theft.

With the latest advancements in the field, it is much easier for the car owners to get their vehicle insured. There are a lot of insurance service providers in the market who offer competitive packages for the customers to earn maximum benefits.

Another aspect of the matter is that Pakistan is a developing country and there are a number of projects of infrastructure that are in the pipeline in big cities like Peshawar and Lahore. Such situations are creating a challenging situation on the roads and for the drivers. All of this is resulting in increased traffic accidents.

No matter how careful you are but there can be the time that you earn damage to your vehicle due to the carelessness of the driver just behind you. In such conditions, car insurance will help you deal with the situations with an ultimate peace of mind.

2- Is it Necessary to Have Car Insurance in Pakistan?

Yes, it is a must to have. However, according to the traffic laws of Pakistan, the driver must own the third party insurance of liability. If not so, he will have to pay a fine and might be charged with punishment for violation of traffic rules. The third-party liability insurance service providers offer services for property damage, car damage, death by vehicle, and physical injury etc.

Related Read: 4 Big Reasons Not To Let Your Car Insurance Lapse!

3- What Emblements Impact the Car Insurance Premium in Pakistan?

It is important for you to know what major elements are there that might have an impact on the car insurance premium in Pakistan. The car insurance service providers in Pakistan, consider a number of factors before finalizing terms for the premium of your car insurance. Below are some of the key factors that can have an impact on the car insurance in Pakistan;

•         The value of your vehicle
•         The insured estimate value
•         Model and make of vehicle
•         Age of the car
•         In which area it is used and where it is parked when not on the ride
•         Do the car have  a tracker or not

4- Is Car Insurance Policy Only for Registered Owner?

Yes, in Pakistan the insurance policy is issued in the name of the registered owner of the car. However, you can purchase the insurance policy if you own an unregistered vehicle but you have to provide the documentation of registration in time of 15 days. In another case, the policy will be terminated.

5- What if the husband and Wife Both are driving the same car?

If both husband and wife are driving the same car, the insurance policy will go for both of them. The insurance policy in Pakistan is provided on the basis of the vehicle and not the person. However, these service providers will do ask for the details of the car owner and the person who will be driving the car. It is necessary for the registration of the vehicle insurance.

6- Do Service Provider Ask for Driving History?

Before offering the insurance policy the car insurance services providers will do ask for the policy owner various questions. The service provider might ask you your history of driving, if you have had any accidents in the past, or if you are a rash driver. It helps them to calculate the risk level.  Also before giving you the insurance policy, they will check the vehicle in detail for if there is any damage to it or not. So the driving history of the people who will be driving the car is a must for the services providers before they will issue you an insurance policy.

7- Do We Separate Insurance for Every Car?

Every car has its own insurance. One policy will be applicable only on one car. If you have more than one car, you will need to buy a separate insurance policy for them. You may find some insurance provider who will transfer a single insurance policy from one car to another but you have to pay the premium separately.

8- An Insurance Policy Covers Entire Pakistan or One Province?

Most of the insurance provider covers entire Pakistan. However, there are some insurance providers who have excluded some sensitive parts of Pakistan including Balochistan. This is done due to the security issues. If the client looks for some insurance for sensitive areas, he/she must ask the service provider and will have to pay some additional amount in this regard.

Related Read: 6 Smart Tips To Cut Down On Your Car Insurance Cost!

9- Can We Get Short-term Insurance Cover?

If you are asking about a genuine car insurance service provider then surely there is not short term car insurance cover in Pakistan. However, the owner of the insurance can cancel the policy at any moment. The policy owner can also claim a refund if he or she has not claimed an accident during this time period and if there are a minimum of 120 days left till the expiration of the policy for car insurance.

10- Car Insurance Requirements while Renting a Car:

When you are renting a car, you do not need to buy the insurance car in your name. the cars that are used by the car rental businesses are insured under the specified category and is done in the name of the actual owner of the car or the company who rent the car to the third party for temporary use.

These are the most general norms of the car insurance industry in Pakistan. There are chances that the insurance provider may have some specified terms and conditions of their own but the above said are to be applicable in all cases.

Related Read: Car Insurance in Pakistan: An Easy to Use Guide for First Time Buyers

Otherwise, in any case, we would recommend you to study the policies or terms and conditions in detail before signing an agreement of the car insurance policy in Pakistan, to keep yourself safe and out of any hassle or hidden charges.

Khurram Zahid

The post 10 Things You Must Know Before Going for Car Insurance in Pakistan appeared first on Smartchoice.pk.