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Auto Insurance Myths in Dubai

Written by Huma

Auto insurance myths have created confusion among the target audience who believe in notions that their coverage plans facilitate all their vehicular needs. But is this presumption or reality?

The car insurance market is dominating a major segment of the UAE’s economic development.

And indeed, this is because of the frequency with which cars are purchased in Dubai.

It has induced the government to safeguard roads by implementing insurance law on any individual owning a car.

Due to the diversification of the auto insurance providers’ policies and coverage plans, many users tend to believe some car protection policy myths and end up making bad decisions that have extended adverse effects on their premium.

This isn’t the client’s fault as most of the terms and conditions of auto insurance are non-transparent and jumbled up with each other to make little sense to a layman.

Naturally, our provider’s aid and ensure clients that they are not purchasing anything that is extra or not needed by the car, but some myths about auto insurance still persist.

Therefore, our website BuyAnyInsurance addresses the common and not so common myths so that you can make a wise decision regarding your coverage plan.


Medical bills covered in the event of personal accident

When you buy car insurance, you usually see the options for personal accident coverage, and you believe in the notion that god forbid in the time unfortunate car crash the insurance company will pay the medical bills.

Much to your disappointment, it’s not true. As the personal accident pay your lump sum amount to specific injuries. For instance,

  1. God forbid If you died during the accident the insurance company will facilitate your family with the lumpsum reimbursement amount of AED 2,00,000.
  2. In the event of blindness, you are eligible to get AED 100,000 for each eye.
  3. In case of physical disability, you are awarded AED 50,000 for each limb injured.

Therefore, in those unfortunate times just showing your insurance document in the hospital will not get you any medical coverage. For that, you have to have health insurance.


The insurance provider will cover the mechanical cost

One of the most standard perceptions and insurance myth is that if the person has comprehensive coverage, he/she will get mechanical repair cover form the company.

But that’s not the case as your insurance provider can provide you with a replacement car but not major repair in case of big accidental damage or break down.

The mechanical cost is totally dependant upon the vehicles physical appearance at the time of insurance and its depreciation rate.

For that, you can include extra add-on cover to your insurance policy and pay the extra fee.


Gulf Cooperation Council (GCC) offers comprehensive insurance

Another infamous myth is that the GCC offers comprehensive insurance to clients driving insured vehicles.

This feature is limited to clients with gold car insurance. However, it is partial coverage not legal permission to drive in another GCC state.

Therefore, every client should adopt the policy according to the UAE insurance laws as GCC cover provide no third-party liability insurance to their clients.


Your insurance provider gives you the best deals

Of course, successful businesses are those based on honesty and integrity but in this practical world, no lunches are free.

Even your provider will try to convince you that unnecessary coverage is best for your premium. Before agreeing to anything always do your homework and seek different car quotes.

It’s quite rare for you to get reasonable rates and package from insurance brokers or car dealers offline.

Get in touch with online insurance providers and websites that are known for their work ethics and provide authentic content.

These online platforms
provide you

  1. Value for money
  2. Low Premium rate
  3. Safe and secure transaction
  4. 24/7 Service
  5. No broker/agent fees


Agency Repair Coverage

Agency repair is one of the most featured comprehensive insurance plans. This means when car towing or any malfunctioning car, the insurance provider/agent will take the responsibility of paying your car repair amount with the help of agency repair.

However, your insurance premium does get a little high because of this.

Additionally, the option of cheaper non-agency repair is always available.

The decision falls to you. If you have an expensive car like a sports car, send your car for repair to the professional hands of the agency; otherwise, non-agency repair is a reasonable alternative.


Using your insurance claim when you drive someone else’s car

One of the common misconceptions that everyone has is that if they drive someone else’s car and in case of any unfortunate incidents, the person’s insurance provider will cover the expense if they have comprehensive car insurance policies.

But that’s not the case all the time.

There are several strict legal regulations that stipulate;

  1. A driver who is under age 25 cannot avail this cover at any situation
  2. A driver of 25 or more can avail cover but has to ask the insurance company to add this on in his/her policy.
  3. His/her insurance provider will pay the definite amount and the remaining payment has to be paid by the driver.


High premium means better service coverage

Having a high car premium doesn’t mean you have high coverage service.

This myth was quite common and lead many buyers to choose expensive and unnecessary policies.

Your car type and its requirements set the premium.


Is it possible to have auto insurance with no license?

Yes! In Fact it is necessary when someone other than you is driving your car.

What auto insurance is required by law? 

Liability coverage! Almost every car in Dubai requires liability coverage by law.

What is auto insurance bodily injury limits?

Although the bodily injuries are not good for you, auto insurance will pay you a huge amount in case you get the bodily injuries. You can get 25,000 from your auto insurance in case you get bodily injuries. 

What factors are most important for auto insurance rates in the UAE?

  1. Age is a very significant rating factor, especially for young drivers in the UAE
  2. Driving history
  3. Credit score
  4. No. of years of driving experience
  5. Location
  6. Gender
  7. Insurance history
  8. Annual vehicle mileage

What are three factors that affect your auto insurance?

These are the three factors that may affect your auto insurance premiums:

  1. Your car & driving habits
  2. Demographic factors and the coverages
  3. Limits and deductibles you choose in the policy 

These factors may include things such as your age, anti-theft features in your vehicle  and your driving record.

What are some disadvantages of auto insurance?

Some of the disadvantages of car insurance are:

  • Time taking process
  • Hassle free claim settlement
  • Poor customer support & services

Final Thoughts

Reading precisely through all the relevant terms and condition before signing can save you from trouble.

Analyze your choices and understand the UAE insurance laws.

Therefore, get familiar with online insurance blogs and claim rejection criteria’s to be more informed and harder to be manipulated.

Read Our Blogs:

First Car Insurance: A Complete Guide for the new buyers in Dubai

Online Car Insurance Trends In the UAE

Calculate Car Insurance Premium Online in the UAE – BuyAnyInsurance

A to Z Guide: Everything you need to know about driving a car in Dubai

Originally published Nov 03, 2019 10:09:19 AM, updated May 07, 2024

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